Latest news with #RM12.2
BusinessToday
2 days ago
- Business
- BusinessToday
HLIB Has "Uncertain Outlook" View On Hartalega
Hartalega Holdings Berhad reported a core Profit After Tax and Minority Interest (PATMI) of RM12.2 million for the first quarter of its financial year 2026 (1QFY26), a 7.0% increase quarter-on-quarter (QoQ) but a significant 72.7% drop year-on-year (YoY). While these results were broadly in line with HLIB Research's expectations, they fell short of consensus forecasts. The 1QFY26 core PATMI was calculated after excluding extraordinary items of RM0.4 million, which included gains from property, plant, and equipment disposal, fair value gains on derivatives, and a reversal of allowance for expected credit loss (ECL) on trade receivables. These positive adjustments were partially offset by RM15.4 million in realized and unrealized forex losses. No dividends were declared for the quarter. Revenue Decline Despite Cost Controls Hartalega's revenue declined by 9.6% QoQ, primarily due to a 3.1% drop in sales volume and a 6.7% decrease in average selling prices (ASP) in Ringgit terms. The lower sales volume was attributed to front-loading activities by US customers in 3QFY25, potential transhipment activities via Vietnam, Thailand, and Indonesia, and intense competition from Chinese players in non-US markets. The weaker ASP was a result of competitive pricing by regional players amid subdued demand, a 3.2% depreciation of the US Dollar against the Ringgit, and a 3.3% decline in NBR prices. Despite the revenue contraction, core PATMI improved QoQ, boosted by lower operating costs stemming from ongoing automation initiatives and headcount rightsizing. On a YoY basis, revenue decreased by 5.3%, with core PATMI dipping at a greater pace due to negative operating leverage, lower net interest income, and higher depreciation expenses. Outlook and Strategic Initiatives During its recent briefing, HLIB said Hartalega expressed continued concern over the industry's supply-demand equilibrium, now projecting a potential delay in rebalancing from 2026 to 2029. To maintain competitiveness, the company plans to invest RM200-300 million over the next 9-15 months in automation and energy efficiency enhancements. These initiatives include revamping glove stripping machines, installing AI-driven vision inspection systems, and modifying production lines for better energy and chemical efficiency. For 2QFY26, Hartalega aims to deliver approximately 2.2 billion pieces per month, an increase of about 12% QoQ, driven by an anticipated pickup in orders from US customers starting in August 2025. Group blended ASP is expected to remain flat QoQ, with the weakness in generic medical nitrile rubber gloves offset by a shift towards more premium products. Input costs for NBR are expected to be flat, while natural gas tariffs are projected to decline by 1.5% QoQ. Tax Bill and Financial Position Separately, Hartalega announced it received additional tax bills from the Inland Revenue Board (IRB) amounting to RM101 million (RM0.03 per share or 2.2% of market cap) for the years 2017-2022. The company is currently seeking legal advice and evaluating options, including initiating a formal appeal. Despite this, Hartalega maintains a strong financial position with a net cash balance of RM986 million (or RM0.29/share) as of 1QFY26, providing financial flexibility. HLIB Research is maintaining its FY26 forecasts but has cut its FY27 forecasts by 13.5% to reflect a more uncertain outlook. They are introducing an FY28 core PATMI forecast of RM243.8 million. The research house reiterated its 'Hold' recommendation on Hartalega, with a lower target price of RM1.32 (down from RM1.48).
Daily Express
4 days ago
- Business
- Daily Express
RM12 billion from agriculture sector: Hajiji
Published on: Tuesday, August 05, 2025 Published on: Tue, Aug 05, 2025 Text Size: Hajiji said as a State blessed with fertile land and a tropical climate well-suited for agriculture, Sabah is taking bold steps to support the national food security agenda. Kota Kinabalu: The State Government remains committed to ensuring the agriculture sector continues to be a key driver of growth and a catalyst for a more dynamic and resilient Sabah economy. Chief Minister Datuk Seri Hajiji Haji Noor said the sector is not only the third-largest contributor to the state's economy but also plays a critical role in safeguarding national food security. 'This sector contributes RM12.2 billion or 14.5 per cent to Sabah's Gross Domestic Product (GDP). 'Therefore, the State Government is prioritising efforts to further strengthen this sector through more strategic and inclusive approaches,' he said at the closing of the 2025 National Farmers, Breeders and Fishermen's Day (HPPNK) at the Sabah International Convention Centre (SICC), Sunday. Prime Minister Datuk Seri Anwar Ibrahim officiated the closing of HPPNK 2025. Also present were Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu, along with federal and state leaders. Advertisement Hajiji said as a State blessed with fertile land and a tropical climate well-suited for agriculture, Sabah is taking bold steps to support the national food security agenda. Among the concrete measures is the re-establishment of the Sabah Rice and Padi Board last year — after being dissolved in 1981 — to boost the local rice industry and raise the Self-Sufficiency Level (SSL) of rice to 30 per cent by 2026 and 60 per cent by 2030. 'This is in line with the priorities of the Federal Government led by Anwar who has placed strong emphasis on agriculture, especially rice cultivation,' he said. He emphasised the importance of modern technologies such as the Internet of Things (IoT) and smart farming to increase production efficiency, boost productivity, and attract younger generations to the sector. He said Sabah currently has 15 Permanent Food Production Parks (TKPM) that had produced over 1,494 metric tons of food products, generating more than RM4.32 million to date. Hajiji also announced Sabah's first high-impact strategic investment in the Blue Economy sector — development of a European Union-standard tuna and deep-sea seafood landing port in Kota Kinabalu by the State Government in partnership with a local company, with an investment value reaching RM360 million. He said the port is expected to land 50,000 tons of tuna annually, with the potential to generate up to RM1.8 billion in economic value per year, positioning Sabah as one of the major deep-sea players. He also urged the farming, livestock, and fishing communities in Sabah to embrace change and adopt new technologies in modern farming practices and farm management. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
5 days ago
- Business
- Daily Express
Sabah prioritises agriculture as key driver of economic growth
Published on: Sunday, August 03, 2025 Published on: Sun, Aug 03, 2025 Text Size: Anwar and Hajiji with others visit one of the booths. - Pic by CMD KOTA KINABALU: The State Government remains committed to strengthening Sabah's agriculture sector as a key engine of growth and food security. Chief Minister Datuk Seri Hajiji Noor said agriculture contributed RM12.2 billion or 14.5 per cent to Sabah's GDP, making it the third largest sector in the state economy. He said this during the closing ceremony of the National Farmers, Breeders and Fishermen Day (HPPNK) 2025 at the Sabah International Convention Centre (SICC) here on Sunday, officiated by Prime Minister Datuk Seri Anwar Ibrahim. To boost food resilience, Hajiji said Sabah had revived the Sabah Rice and Padi Board last year with the aim of raising rice self-sufficiency to 30 per cent by 2026 and 60 per cent by 2030. He highlighted the role of technology such as the Internet of Things and smart farming in modernising agriculture and attracting younger generations to the sector. So far, Sabah's 15 Permanent Food Production Parks (TKPM) have produced over 1,494 metric tonnes of food, generating more than RM4.32 million in returns. Sabah is also developing a RM360 million tuna and deep-sea fish landing port in Kota Kinabalu, expected to land 50,000 tonnes of tuna annually and support an estimated RM1.8 billion in economic value each year. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malay Mail
25-07-2025
- Business
- Malay Mail
Trump: Australia will get ‘so much' of our ‘magnificent beef', others that refuse are ‘on notice'
WASHINGTON, July 25 — The United States will sell 'so much' beef to Australia, US President Donald Trump said on Thursday after Canberra relaxed import restrictions, adding that other countries that refused US beef products were on notice. Australia on Thursday said it would loosen biosecurity rules for US beef, something analysts predicted would not significantly increase US shipments because Australia is a major beef producer and exporter whose prices are much lower. 'We are going to sell so much to Australia because this is undeniable and irrefutable Proof that US Beef is the Safest and Best in the entire World,' Trump said in a post on Truth Social. 'The other Countries that refuse our magnificent Beef are ON NOTICE,' the post continued. Trump has attempted to renegotiate trade deals with numerous countries he says have taken advantage of the United States — a characterisation many economists dispute. 'For decades, Australia imposed unjustified barriers on US beef,' US Trade Representative Jamieson Greer said in a statement, calling Australia's decision a 'major milestone in lowering trade barriers and securing market access for US farmers and ranchers.' Australia is not a significant importer of beef but the United States is and a production slump is forcing it to step up purchases. Last year, Australia shipped almost 400,000 metric tonnes of beef worth US$2.9 billion (RM12.2 billion) to the United States, with just 269 tonnes of US product moving the other way. Australian officials say the relaxation of restrictions was not part of any trade negotiations but the result of a years-long assessment of US biosecurity practices. Canberra has restricted US beef imports since 2003 due to concerns about bovine spongiform encephalopathy (BSE), or mad cow disease. Since 2019, it has allowed in meat from animals born, raised and slaughtered in the US but few suppliers were able to prove that their cattle had not been in Canada and Mexico. On Wednesday, Australia's agriculture ministry said US cattle traceability and control systems had improved enough that Australia could accept beef from cattle born in Canada or Mexico and slaughtered in the United States. The decision has caused some concern in Australia, where biosecurity is seen as essential to prevent diseases and pests from ravaging the farm sector. 'We need to know if (the government) is sacrificing our high biosecurity standards just so Prime Minister Anthony Albanese can obtain a meeting with US President Donald Trump,' shadow agriculture minister David Littleproud said in a statement. Australia, which imports more from the US than it exports, faces a 10 per cent across-the-board US tariff, as well 50 per cent tariffs on steel and aluminium. Trump has also threatened to impose a 200 per cent tariff on pharmaceuticals. Asked whether the change would help achieve a trade deal, Australian Trade Minister Don Farrell said: 'I'm not too sure.' 'We haven't done this in order to entice the Americans into a trade agreement,' he said. 'We think that they should do that anyway.' — Reuters
