Stock Name: HARTA
Company Name: HARTALEGA HOLDINGS BHD
RHB Research raised its fair value on Malaysia's Hartalega Holdings Bhd to RM7.37 a share from RM7.12 after taking into account the glove maker's RM1.5 billion aggressive expansion plan.
"We are positive with Hartalega's Next Generation Integrated Glove Manufacturing Complex (NGC) project which would see the group grow its capacity by about 20 percent per annum, faster than the typical expansion rate of 10-15 percent per annum by peers," the broker said in a research note on Monday.
Maintaining "underperform" on the counter, RHB Research said the successful implementation of Hartalega's NGC project would see the company shift towards a "high-volume" nitrile glove manufacturer and thus provide it with larger economies of scale to compete with its larger peers.
However, the broker lowered Hartalega's 2012-2014 full year net profit forecast to as much as 8.5 percent after taking into account the increases in raw material costs assumptions. -- Reuters
Company Name: HARTALEGA HOLDINGS BHD
| Research House: RHB | Price Call: HOLD | Target Price: 7.37 |
RHB Research raised its fair value on Malaysia's Hartalega Holdings Bhd to RM7.37 a share from RM7.12 after taking into account the glove maker's RM1.5 billion aggressive expansion plan.
"We are positive with Hartalega's Next Generation Integrated Glove Manufacturing Complex (NGC) project which would see the group grow its capacity by about 20 percent per annum, faster than the typical expansion rate of 10-15 percent per annum by peers," the broker said in a research note on Monday.
Maintaining "underperform" on the counter, RHB Research said the successful implementation of Hartalega's NGC project would see the company shift towards a "high-volume" nitrile glove manufacturer and thus provide it with larger economies of scale to compete with its larger peers.
However, the broker lowered Hartalega's 2012-2014 full year net profit forecast to as much as 8.5 percent after taking into account the increases in raw material costs assumptions. -- Reuters
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