KUALA LUMPUR (Aug 18): The Employees Provident Fund's (EPF) stake in Hartalega Holdings Bhd has fallen to 4.96% after the EPF sold 26.72 million shares in the rubber glove manufacturer on Monday (Aug 15), according to Hartalega's latest Bursa Malaysia filing on Thursday.

Hartalega said the EPF's latest-reported 4.96% stake comprises 170.01 million shares in the company.

Prior to the latest-reported transaction, the EPF owned a 5.74% stake in Hartalega on Friday (August 12), according to Hartalega's filing on Wednesday (August 17).

About a year earlier, the EPF's stake in Hartalega stood at 8.156% on Aug 9, 2021, according to Hartalega's filing back then.

The Malaysian rubber glove sector is closely watched as a beneficiary of the Covid-19 outbreak, which started in early 2020, as demand for the product, seen as a crucial piece of personal protective equipment, jumped to curb the global spread of the pandemic.

Covid-19-driven demand for gloves is, however, now seen normalising as global vaccination progress has led to anticipation that the Covid-19 outbreak can be curbed.

On Thursday, Hartalega's share price closed up six sen or 3.45% at RM1.80, which gives the company a market value of about RM6.16 billion.

The company has 3.42 billion outstanding shares, according to its latest annual report.

On Aug 9, Hartalega reported that first quarter net profit slumped to RM88.28 million from RM2.26 billion a year earlier as the rubber glove manufacturer's revenue dropped significantly at a time when glove average selling price and sales volume declined after rising to a record high during the crucial period of the Covid-19 outbreak.

According to Hartalega's Bursa filing, higher energy and labour costs due to the increase in natural gas tariffs and Malaysia's minimum wage implementation had also affected the company's profitability.

Hartalega said revenue dropped to RM845.67 million in the first quarter ended June 30, 2022 (1QFY23) from RM3.9 billion a year earlier.

Such sentiment is already reflected in share prices of major glove manufacturers like Hartalega and its rivals Top Glove Corp Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd.

Shares prices of Top Glove, Hartalega, Supermax and Kossan, which have been adjusted for their respective bonus share issues, have fallen sharply to current levels from highs seen during the critical phase of the Covid-19 outbreak.

On Aug 21, 2020, Top Glove had closed at RM9.33, Hartalega finished at RM17.74, Supermax ended at RM10.95 and Kossan closed at RM8.20.