Sunday 11 February 2018

HARTALEGA 3rd Quarter 2018 Financial Report


Here we are again,
the month of financial reports.
So most of the articles of this month will be focused on the financial reports of some companies.

 The company that I am going to write about today,
is the famous glove company HARTALEGA.

 Let's have a look at the latest performance:

 Good performance,
the explanation by management:

 Basically,
since the sales volume increased by 36.2%,
so the revenue grew by 32.2%.

 The growth of sales volume was more than the revenue,
so which meant that HARTALEGA adjusted down the price of glove?

 PBT grew by 77.3%,
because of growth in revenue and lower cost incurred by improvement of production efficiencies,
also some net foreign exchange gain.

 Then,
let's have a look at the comparison of performances between this quarter and last quarter:

Comparing with previous quarter,
the revenue and PBT grew a little.

 Commentary on prospects:
Basically,
since China still pushing for strict environmental laws,
so the demand of gloves still rising.

 10 production lines out of total 12 lines in Plant 4 have been commissioned,
Plant 5 also being constructing now.

 The new anti-microbial gloves will be launched at Europe around April to June year 2018.
For US market, approval by FDA still in the process.
At last,
management even stated that they will price this new product competitively......

 For dividend:
Dividend is increased again~
Every shareholder is happy now~

 Not only that,
Bonus Issue of 1:1 also being announced,
which I don't really like it.....

 Next time when I tell people that I bought HARTALEGA at price around RM9,
hold until now RM5, I earned.
They will think I am crazy again....

 Anyway,
the future of gloves still looks bright though~

 So here comes the question,
the share price is above RM11 now.
If didn't buy when it was around RM9 at 3 months ago,
are you going to buy it now at RM11 above?

 Investment is about doing own thinking, making own decision.

 Thanks for reading.



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