(HART MK/SELL/RM4.88/Target: RM4.07)

Hartalega is set to announce its 4QFY17 results early next month. We project qoq stronger
quarterly net profit of RM93m-100m on the back of three new lines and qoq firmer glove
ASPs. Margins should also expand as favourable forex movement will mitigate the higher
raw material input costs. We raise our FY17-19 earnings forecasts by 2-13% after imputing
higher ASP assumption. However, lofty valuations still imply downside risks to share price.
Maintain SELL with a revised target price of RM4.07.

Source: UOB Kay Hian Research - 12 Apr 2017