Latest news with #RM31.93
The Star
4 days ago
- Business
- The Star
Hartalega shares fall on tax bill, weaker quarterly earnings
KUALA LUMPUR: Shares in glove manufacturer Hartalega Holdings Bhd fell in early trade on Wednesday after it disclosed a RM101.36 million additional tax bill from the Inland Revenue Board (LHDN) and reported weaker first-quarter earnings. At 10.07 am, the counter dropped six sen, or 4.55 per cent, to RM1.26, with 12.08 million shares changing hands. In a filing to Bursa Malaysia on Tuesday, the company said its wholly owned subsidiary, Hartalega NGC Sdn Bhd, had received a notice of additional assessment from LHDN for the years of assessment 2017 to 2022. Hartalega said it is seeking legal advice and evaluating its options, which may include filing a formal appeal. For the first quarter ended 30 June 2025, the group posted a lower net profit of RM12.61 million, compared with RM31.93 million a year earlier. Revenue declined to RM553.11 million from RM583.84 million previously. Public Investment Bank Bhd said it expects Hartalega to remain under pressure due to rising operating costs, persistent overcapacity in the sector, and intense price competition from regional players, particularly in China. "Pricing pressure is expected to persist, especially in non-US markets, where Chinese manufacturers continue to offer products at a steep discount of a cumulative US$14-15 per 1,000 pieces,' it said in a note today. The investment bank maintained its 'neutral' rating on Hartalega, while lowering its target price to RM1.44 per share. - Bernama Trading ideas: Maybank, CIMB, Hartalega, Infomina, CBH, Citaglobal, KJTS, Carzo, Aizo, Fajarbaru, Dengkil, Lotte, Frontken
New Straits Times
5 days ago
- Business
- New Straits Times
Hartalega's Q1 earnings shrink as 'global glove sector recalibrates'
KUALA LUMPUR: Hartalega Holdings Bhd's net profit fell 60.5 per cent to RM12.61 million in the first quarter ended June 20, 2025 (1Q26) from RM31.93 million a year ago. Hartalega said the performance for the quarter was affected by a reduction in average selling prices (ASPs), as well as lower sales volume primarily owing to front-loaded inventories held by US customers and deferred orders in response to ongoing tariff developments. "At the same time, pricing pressures intensified in non-US markets, driven by excess supply from Chinese manufacturers. "Operating profit was also affected by the lower ASPs, strengthening of the ringgit and less favourable cost absorption resulting from lower capacity utilisation," it added. Meanwhile, Hartalega's quarterly revenue declined to RM553.11 million from RM583.84 million previously. As a result, its earnings per share for the period came in lower at 0.37 sen compared to 0.94 sen in 1Q25. Hartalega chief executive officer Kuan Mun Leong said the first quarter reflects the ongoing recalibration taking place in the global glove sector. He said with overcapacity still persisting and operating costs rising, competition remains intense, especially from China and other regional manufacturers. He added that uncertainty surrounding US tariff policies continues to weigh down on demand, especially in the US market, while also prompting a shift in long-term sourcing strategies among US importers. "Nevertheless, we are anchored by our long-term strategy, focusing on enhancing production efficiency and cost optimisation, investing in advanced automation, maintaining robust fiscal discipline, and sharpening our sales approach to strengthen Hartalega's competitiveness and resilience," he said. Kuan said while near-term conditions are challenging, structural glove demand for rubber gloves continues to hold strong prospects, driven by growing global healthcare needs and hygiene awareness. He noted that the group's focus remains on building long-term value while continuing to uphold best practices in responsible manufacturing and environmental, social and governance compliance.
