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9 comment(s). Last comment by nickinvests 2022-05-29 15:47

Posted by YourQuirkyWays29 > 2022-05-27 16:03 | Report Abuse

A damn good piece. Kudos.


1,032 posts

Posted by Sslee > 2022-05-27 16:23 | Report Abuse

You can ask Philip ( buy what you understand) for his opinion on what should you do.

My take, since EPF is unloading you can expect many new low to come.

Posted by BursaVulture > 2022-05-27 18:44 | Report Abuse

Harta is good, but am not touching it. even if they have 2 or 3 quarters of earnings growth, it will be side ways for many years till he moves up again, but with so many people holding the bag, the resistance will be great, thus very hard for it to move up.


674 posts

Posted by madguy > 2022-05-28 04:31 | Report Abuse


Posted by Philip ( buy what you understand) > 2022-05-28 15:34 | Report Abuse

Very simple, in today's environment, you have to ask yourself one simple question. Why are tech companies like grab and Airbnb and digital turbine and afterpay etc are all crashing? The simple answer is misrepresented future earnings capability mixed with problems of existing ability to act as a going concern( debt and cash flow). The problem we have now is a huge number of companies with huge debt, a going concern of capital outlay and growth of earnings. On the other hand what do we have with hartalega, pchem, and other bursa stalwarts? We have companies which find it hard to get bankrupt( huge cash position), a generous dividend policy( 50% of earnings) which are very shareholder friendly, and good growth in the future ( NGC and PIC). Most of all, what we have is a good asking price which is cheaper than the market call in 2017. Has anything changed about the business? It still has a huge efficient business. It is still a large market maker. And it is still the king of nitrile gloves.

So what are you paying for? A lot risk, cash cow which is asking for a lower price than ever before. The difference is why are people not buying it? I don't know and I don't really care. I just know the business has not changed, and I am getting my money's worth.


14,179 posts

Posted by probability > 2022-05-28 15:39 | Report Abuse

Hengyuan will make the cash Harta had made by end of 2022, and its margin will never revert to 2021 level...definitely not like gloves margin erosion due to instant competition


14,179 posts

Posted by probability > 2022-05-28 15:44 | Report Abuse

and Hengyuan market cap RM 1.9 billion only compared to Harta at 14.9 billion


5,186 posts

Posted by ahbah > 2022-05-29 14:55 | Report Abuse

" 50% Drop in Hartalega. What Should I Do? " I would cry in the rain onli bcos no one

would notice my crying in the rain !

Posted by nickinvests > 2022-05-29 15:47 | Report Abuse

u need to take into account cash in balance sheet too.

anyways, the only really good glove counter to hold is Riverstone (SGX listed) and Hartalega.

Riverstone probably will be one of the few profitable one (need to consider their size) in the next few quarters.

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