Stock Name: HARTA
Company Name: HARTALEGA HOLDINGS BHD
Company Name: HARTALEGA HOLDINGS BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 7.82 |
Maintain HOLD, TP:RM7.82
Hartalega is embarking on a massive capacity expansion consisting of 70 new production lines. The RM1.5bn expansion will take place over the duration of 8 years (2013-2021). We have yet to factor in any earnings contribution from this project which we expect to start contributing in FY15. The stock is currently trading at 13x CY12 and 12x CY13 EPS, compared to an average net profit growth of 8%. Recommend a HOLD with TP RM7.82 based on 13x CY12 EPS of 60.2 sen, 18% above its historical average due to its superior margins. (refer to report for details)
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