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.