Wednesday, August 8, 2012

Hartalega: Maintain Buy - Breaking Through Plateaus

Hartalega: Maintain Buy - Breaking Through Plateaus
  • Results in line. Hartalega's 1QFY3/13 core net profit of MYR55m (+12% QoQ) made up 24-25% of our and the market’s full-year forecasts.
  • Its outlook remains promising given strong demand for nitrile gloves, falling NBR input cost and earnings growth from its Plant 6 (to commercialise starting end-2QFY3/13).
  • Its forward PER of 14x is also undemanding compared to Top Glove’s historical average PER of 16x. Maintain forecasts, BUY rating and TP of MYR5.00 (15x 2013 PER).

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Source: Maybank Research - 8 August 2012

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