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StockAdvisor FBMKLCI

Author: MrRightTiming   |   Latest post: Sat, 13 Feb 2021, 2:07 AM

 

HARTA RESULTS RM1 BIL - WHAT IT MEANS FOR OTHER GLOVE PLAYERS?

Author:   |    Publish date:


WE ARE NOT GOING TO GO INTO THE FUNDAMENTAL CALCULATIONS OF THIS COMPANY'S PERFORMANCE. LETS MAKE IT LAYMAN!

https://www.nst.com.my/business/2021/01/660432/hartalega-delivers-record-net-profit-q3-higher-sales-volume


HARTALEGA (5168) just posted a record high revenue of RM2.13 bil and Profit After Tax (PAT) of RM1.001 bil

 

This is RM100mil more than analyst forecast of RM900 mil profts --https://www.theedgemarkets.com/article/rhb-hartalegas-3qfy21-earnings-surge-643-yoy-rm900-million

As usual, investors might be having a traumatic experience from previous QRs where there were heavy profit taking on Glove stocks despite producing stellar performance. Will it be the same this time?

OUR POINT OF VIEW

This time around it is not the same as the previous round. Hartalega and other glove stocks has gone through massive selling on the news of vaccine rollout and its efficacy of reducing the spread of COVID cases. This has caused funds to create a selling pressure on glove stocks for a good period of time resulting in glove stocks being deeply undervalued.

What we have seen so far is far from what was expected as COVID cases are still on the rise worldwide and countries are going back into lockdown despite the vaccine innoculation.

And from the QR prospects, we can see the gloves demand are still high --> THE OVERALL PROJECTED GROWTH IN DEMAND IS EXPECTED TO OUTSTRIP SUPPLY FOR THE NEXT FEW YEARS

CONCLUSION

We forecast that the worst is over for gloves at least for this time around and instead of profit taking, we might a see a surpise movement upwards. We are expecting all other glove stocks to start their uptrend movement to their next resistance levels. We are going to go for a HOLD on Glove stocks at least until the end of February. 

 

As for HARTALEGA -> We expect it to move towards its first resistance of RM13.30, RM13.66, RM14.80 and RM15.50 first

 

For other major glove stocks, this is our expected movement levels

SUPERMX (7106) -> Next resistances are at RM7.40, RM8.00, RM8.64, RM8.95 and finally RM9.36

TOPGLOV (7113) --> Next resistances are at RM6.77, RM6.84, RM7.20, RM7.45, RM7.95 and finally RM8.41

COMFORT (2127) --> Next resistances are at RM3.76, RM3.93, RM4.10 and finally RM4.40

CAREPLS (0163) --> Next resistances are at RM2.96, RM3.12, RM3.32 and finally RM3.38

Follow us in our Telegram Channel @StockAdvisor FBMKLCI for more info on stocks movements in Bursa Malaysia on a daily basis!

 

Disclaimer : All notes expressed here are solely indivdual point of views and we are not responsible for any buy or sell decisions made by others. Kindly use this as a reference reading material to add value to your current research and pleas verify any information stated here with a licensed individual in the capital markets industry before making any decisions.

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Labels: HARTA

Related Stocks

Chart Stock Name Last Change Volume 
HARTA 9.41 +0.03 (0.32%) 12,096,000 

  Sasikumar97 likes this.
 
gemfinder History wil repeat. Selling never ends
25/01/2021 11:12 PM
tallman Gemfinder must be from IB and shorting a lot of tickets
26/01/2021 4:35 AM
Pgraduate123 Gemfinder... History repeats itself. Glove Mania 2.0 Feb 2021.... Buying never ends.
26/01/2021 9:14 AM
paperplane it means sell on news from price mvoement today. wakaka
26/01/2021 12:20 PM
Goldberg GLOVES DEMAND SET TO SURGE FURTHER FOR A FEW YEARS

This time around it is not the same as the previous round. Hartalega and other glove stocks has gone through massive selling on the news of vaccine rollout and its efficacy of reducing the spread of COVID cases. This has caused funds to create a selling pressure on glove stocks for a good period of time resulting in glove stocks being deeply undervalued.

What we have seen so far is far from what was expected as COVID cases are still on the rise worldwide and countries are going back into lockdown despite the vaccine innoculation.

And from the QR prospects, we can see the gloves demand are still high

THE OVERALL PROJECTED GROWTH IN DEMAND IS EXPECTED TO OUTSTRIP SUPPLY FOR THE NEXT FEW YEARS
26/01/2021 2:52 PM
PunTatBerSiul It means nothing.

Lottery prize money never last long!
26/01/2021 5:01 PM
Bgt 9963 Buy and hold...!
26/01/2021 5:03 PM
i3gambler I think all the 4 glove kings are overpriced. Take HARTA for example, market cap per annual production is around RM1.00 per piece of glove produced. Recently KLK said they are venturing into medical glove (currently produce non-medical gloves). By investing 200 million, they can produce 4.5 billion PCs annually, meaning RM0.05 per piece of glove produced. RM1.00 compare to RM0.05, that is 20 times difference. We may say HARTA is better in term of efficiency and profit margin, but a 20 times difference is too much. Some more KLK has rubber estate, and its mother BKAWAN now already acquired CCM, and have all the chemicals for glove manufacturing.
26/01/2021 8:59 PM


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