Results in line. FY12 core net profit of MYR208m (+11% YoY) was within expectations. We reiterate our HOLD call as near-term earnings growth is capped despite solid demand for nitrile gloves (+20-30% YoY), Hartalega is already running at full capacity and the bulk of the new capacity from Plant 6 will only kick in in 2QFY3/14. We maintain our FY3/13-14 forecasts and introduce estimates for FY3/15. Hartalega's 3-year earnings CAGR of 10% is respectable, coming from a high base. TP is also retained at MYR8.50, based on 13x CY13 PER.

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Source: Maybank Research - 9 May 2012