Target RM2.64

The 9MFY09 results were above expectations, contributed by a higher nitrile gloves sales mix, stronger US$, higher production capacity and more efficient cost control. This led to an EBITDA margin improvement of 1.6%-pts to 22.9% YTD while core net profit was up 20.8% q-o-q and 96.2% YTD. We like Hartalega for its market leadership in the production of high quality nitrile examination gloves.

FY09-10 earnings upgrade. We are upgrading our FY09-10 earnings forecasts by 17- 38% to take into account of the better performance of Hartalega. Maintain Buy. Our target price is revised upwards to RM2.64 (previously RM2.25) based on a PER of 8x FY10 earnings. Besides having a market leadership in nitrile gloves in Malaysia, we understand that Hartalega also has the most advanced glove manufacturing technology among its peers. Having said that, the risks to our view include: 1) fluctuating nitrile latex prices, since nitrile latex makes up about 50% of its total production cost; 2) uncertainty in crude oil price direction, causing uncertainty in raw material prices, 3) weakening of US$, since the bulk of its sales are exported, and 4) high reliance on 2 major customers, Medline and Microflex, which make up more than 50% of total sales.


more....

from http://bursastreet.blogspot.com/2009/02/ha...a-holdings.html

i knew izzit the Hartalega rubber glove factory that manufacture natural rubber & cintatics rubber. The factory is at near Kuala Selangor area around Sungai Buloh deep jungle area.

i Will get 1 from u soon

sold rm2.80

Aiyo why you guys sold that soon? The fundamental and competitive edge of this company is so good, the intrisic value is much higher then even the current price of RM5.44 as of 7th Oct 2009. It's ROE is even better than Public Bank. Where else can you find such good company in Malaysia? Furthermore, it's the most efficient manufacturer with highest profit margin. It's just a matter of time before Hartalega outgrows Topglove in term of total profit. Would not sell this stock even if it touch RM8 as the price will continue to grow with its capacity expansion.

I'm still holding it..Hehe..

Harta is hitting another record high today at RM6.93. Latexx is heading for big disaster. I can't tell now but if you look into its financial statement, you'll detect some rats