Stock Name: HARTA
Company Name: HARTALEGA HOLDINGS BHD
Research House: OSK

KUALA LUMPUR: OSK Research said the ex-date for Hartalega's one-for-two bonus issue is on Thursday, Sept 2 and the proposed issuance of up to 121.2 million bonus shares will enlarge its share capital base to 363.5 million shares from the existing 242.3 million shares.

The research house said based on the latest three-month average volume to date, Hartalega's share volume is the lowest compared to its peers at only some 200,000 shares.

'Hence, we think Hartalega would benefit from this corporate exercise compared to its peers. The shares are currently controlled by Hartalega Industries Sdn Bhd, which holds a 50.6% equity stake.

'Our ex-bonus fair value is revised downwards to RM7.93 (cum-basis RM11.89), based on the existing PER of 14x FY12 EPS, while the theoretical share price is adjusted to an ex-bonus price of RM5.05, based on Wednesday's closing price of RM7.58. We continue to like the company's global market leadership in nitrile gloves,' it said.