大提琴家的股市投资笔记 / The Cellist's Share Investment Note: HARTALEGA latest financial report

Wednesday, 15 May 2019

HARTALEGA latest financial report

Since the latest financial result of HARTALEGA was quite shocking,
so a lot of people wrote analysis about it.

THUS,
if you already read a lot of the analysis article about HARTALEGA lately,
then you don't need to waste your time to continue reading this.

Since the quarter report only contained a few main points,
what I will be writing here definitely covered by other people too.

Anyhow,
I still insist to write one myself.

The reason??
It will be easier for me to find it back at the future,
better than being clueless and searching it anywhere.

ANYWAY,
when the financial result was released,
I was very excited to look at the revenue:

But my excitement quickly faded away when I kept reading it.......................

Here is the review by the management:

Just like all the other analysis articles pointed out,
since the sharp strengthening of ringgit happened in a short time,
so the Group was unable to pass the cost increase to the customers.

I just wondering.......................
With the current situation of every glove company lowering down the ASP,
how much cost can HARTALEGA pass to customers??

If looking at the full 12 months,
the revenue grew by 17.6% and the sales volume increased by 10.1%.

Seems good though.................

Currently,
10 out of 12 production lines in Plant 5 has commissioned:

As for AMG,
still waiting for approval from FDA:

Another year has passed while waiting.........................

The management also admitted that the capacity growth is ahead of demand growth:

The 3 main reasons of HARTALEGA remaining optimistic:
1) Growing demand for gloves.
2) NGC expansion
3) Potential growth of AMG.

Lastly,
the lovely dividend:

This time only 1.9sen per share...........

The current shares price is around RM5,
the peak last time was RM7 something..........
For now is it a chance?? Or a trap??

Investment is about doing own thinking, making own decision.

Thanks for reading.

I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.