Hartalega; Buy; RM5.85
Price Target: RM6.60 (Prev RM5.50); HART MK
Demand still strong

Improving line efficiency and robust demand for nitrile gloves to support margins. Raised FY14-15F earnings by 1-3%; more upside if margins hold up. Maintaining lead in nitrile gloves and line speed; further improvements possible. Upgrade to BUY with higher RM6.60 TP.

Traders Spectrum – From the Chartroom. The FBM KLCI swung between 1,766 and 1,779 last week before settling at 1,775.59 on Friday. This translates to a weekly gain of 6.4-point or 0.4%. From a technical perspective, the benchmark index appears to have found a short-term bottom inside a descending triangle pattern. An ensuing positive breakout could then signal the resumption of a market uptrend, probably lifting the benchmark index to overcome the first resistance threshold of 1,785 and make its way towards the psychological mark of 1,800 soon.

Source: HwangDBS Research - 10 Jun 2013