Posted by Pang > 2021-09-07 09:43 | Report Abuse

dividend 19.75 sen for Y/E 31/3/21

Posted by Lewis Lee > 2021-09-07 10:22 | Report Abuse

dividend to be paid on 8-10-21

Posted by Mini2021 > 2021-09-07 11:06 | Report Abuse

akun: you should explain why Harta got billion cash and why you dont have billion cash.... Why a lower mentality people request a higher mentality people to explain why?You should explain this also.

Posted by Keyman188 > 2021-09-07 15:59 | Report Abuse

Malaysian Glove Makers Face Challenge From China, Hartalega Says

7 September 2021, 2:45 pm MYT


China could emerge as a major force in the global rubber gloves market and threaten the dominance of Malaysian companies in the long term, said Kuan Mun Leong, CEO of Hartalega Holdings Bhd., one of Malaysia’s biggest glove producers.

Chinese glove makers are expected to contribute 23% of the total share of the world’s glove supply by 2022 from an estimated 16% currently based on their announced capacity expansion plans, the Hartalega CEO said on Tuesday. Malaysia’s market share is expected to shrink to 60% by 2022 from 67% currently, he added.

The Chinese companies have been meeting rising demand from the U.S and Europe amid production disruptions caused by a flare-up of the coronavirus pandemic in Malaysia, the world’s largest rubber glove supplier.

“Like it or not, China is now a force to reckon and is a competition we should recognize,” Kuan said in a virtual briefing after the company’s annual shareholders meeting. “I don’t see Malaysia will lose leadership position in the near-and-medium term,” the CEO said, adding he’s unsure if the country can keep its dominance in the long term.

Hartalega is currently operating only at 70% of its capacity utilizing 60% of its workforce, he said. Operating at full capacity would require the company to test all its 9,000 workers for Covid-19 every two weeks, which Kuan described as a major disruption.


## https://www.bloomberg.com/news/articles/2021-09-07/malaysian-glove-makers-face-challenge-from-china-hartalega-says

Posted by newbie8080 > 2021-09-07 16:04 | Report Abuse

Anyone attended the AGM?

Any minutes to share?

Posted by treasurehunt > 2021-09-07 16:09 | Report Abuse

from cai leng Klsescreener

#HARTALEGA股东大会

主要业务：
✅ 世界上最大的丁腈(nitrile)手套生产商
✅产能高达 每年440 亿 只手套
✅ 客户主要来自欧美西方国家

整个股东大会长达一个小时半，大部分的时间都是管理层（关氏父子）在为股东们做投资者汇报（investor presentation） 和 问答环节（QnA）

股东特大摘录：
1) 短期阻力
管理层认为短期需求会疲软，
主要是因为在今年上半年许多客户（包括经销商）都在高价买进了足够的库存，
正在等待库存消耗。

受到手套价格下跌的影响，
来自发达国家的市场的客户都表现得非常谨慎。

手套的供应增加，
尤其是来自马、泰、中三国的大咖增加产能，
导致对销售价起到一定的压力。

管理层预计在来临的几个月，
销售价会”sharp drop” （对比4-6 月的巅峰价位），
逐步下滑的原料价格抵消一部分失去的盈利率（profit margin）

2）长期展望
需求的结构性改变，
手套市场的在疫情后的需求对比疫情前，
使用量会更高，
尤其是来自发展中的国家，
比如新兴市场，
主要是因为卫生意识的提升。

3）FY2022 的计划
项目名称： NGC 1.5 （Plant 8-11）
投资额： RM 17 亿
厂房：4 座
正在兴建中，
FY2022 第一季度便可开始投入第一条生产线的生产运作，
整个项目可以提升公司总产能高达 190 亿只手套。

4）未来更多项目
项目名称： NGC 2.0
投资额： RM 32 亿
厂房： 7 座

项目名称： NSM KEDAH
投资额 ： RM 70 亿
厂房： 16 座

5）营运效率的升级计划
截至目前为止，
公司的2 个厂房（7 个中的2 个），
已经是完全数码化，
迎合工业4.0，
生产速度可达到每条线每小时45k 只手套。
在来临的财政年会有更多自动化和数码化，
工厂自动化的目标是降低人力成本的20%

已经正在试用自动化手套包装系统。

6）防疫
超过90% 的员工已经接种疫苗（两剂量）

7）减少碳足迹（carbon footprint）
公司安装了许多的系统来达到降低碳排放，
其中包括太阳能板、生物质能发电系统、热能排放在使用系统等等

QnA

A）如何应对销售价（ASP）降低带来的盈利侵蚀

答： 公司会努力通过营运效率的提升与改善，尤其是通过自动化生产方案。

B）外籍劳工比例，如何减少依赖外劳

答：高达60% 都是外籍劳工，通过录取本地员工，还有自动化生产来降低对外劳的依赖

C）市场上有许多新的手套公司，会否抢走公司客户

答：客户大多数是经销商，与公司有多年的合作经验 ， 客户不会贸然跳船，不预计有太大影响。

D）销售价ASP 还会降多少？ 产能使用率

答：QoQ 来临的季度预计ASP 会下跌 30， Q2 （这个季度）产能使用率70%， 因为在7 月与8 月只有60% 劳动力

E）公司的创新产品AMG 进度， 以及最新的COATS /MDG 系列手套对公司贡献如何

答： AMG依然还没有受到FDA 的认证， COATS 和 MDG 则会贡献不超过 10% 的生意额（未来的3-5 年里）

F）来自中国新产能的威胁

答：无可否认长期来说，来自中国的新增产能会影响整个行业的盈利率， 公司会通过提升营运效率来对冲这个风险，达到持续获利的能力，公司目前是世界上nitrile手套里生产成本最低的，也会致力维护这地位。

G）OEM/ OBM 策略

答: 目前是专注于 OEM ， 在中国印度和澳洲则有自己的OBM市场， 在未来也会专注发展自己的品牌

H）如何应用手头上的庞大现金

答：没有收购计划的打算，会把现金投资在产能扩张以及改善生产效率的努力上

总结:
虽然整个AGM 有收到许多投资者的问题，但是基本上中心都围绕在 ASP 能不能维持、 如何应对ASP下跌后的情况、来自中国的竞争等等（都在上面的叙述里可找到答案）

作为应对方案，HARTA 主要还是通过不断革新管理团队（机构化管理层，包括引进跨国公司的有经验专业管理人士）、 不断创新推出与众不同的产品， 还有自动化生产线降低生产成本，提升生产效率。

HARTA 是一家由眼光长远的管理层掌控的公司，他们表示疫情过后，还是会致力于提升EPS （每股净利）， 公司在KEDAH 的项目， 也会是下一个重要的成长里程碑。

目标：2027 年产量达到950 亿只， KEDAH 厂房建成后 1430 亿只

管理层的一些关键用词：
～销售价格疫情后会比疫情前高，只是是因为生产成本的提升
～2021 年尾盈利率会正常化
～美国不太可能参与手套生产（价钱下跌了，而且在美国生产成本高）

#9月7日

Posted by bang_miskin > 2021-09-07 16:42 | Report Abuse

^bang_miskin tak boleh baca bahasa Cina, so I guna google translate. I am quite satisfied with the direction of the company and they have also acknowledge the increased competition from China. In my opinion this kaunter can hold long term.

Posted by risekita8 > 2021-09-07 18:01 | Report Abuse

I cannot read either. Haha.

Can you share the translation please?

Posted by bang_miskin > Sep 7, 2021 4:42 PM | Report Abuse

^bang_miskin tak boleh baca bahasa Cina, so I guna google translate. I am quite satisfied with the direction of the company and they have also acknowledge the increased competition from China. In my opinion this kaunter can hold long term.

Posted by bang_miskin > 2021-09-07 19:38 | Report Abuse

Hartalega shareholders meeting

Main business:
✅ The world's largest manufacturer of nitrile gloves
✅The production capacity is as high as 44 billion gloves per year
✅ Customers are mainly from Europe, America and Western countries

The entire general meeting of shareholders lasted for an hour and a half, and most of the time was the management (Kuan and his sons) doing investor presentations and question-and-answer sessions (QnA) for shareholders.

Excerpts from the Extraordinary Shareholders:
1) Short-term resistance
Management believes that short-term demand will be weak,
Mainly because in the first half of this year, many customers (including dealers) bought enough inventory at high prices.
Waiting for inventory consumption.

Affected by the fall in glove prices,
Customers from markets in developed countries have been very cautious.

The supply of gloves increased,
Especially the big coffees from Malaysia, Thailand and China have increased their production capacity.
Lead to certain pressure on the sales price.

Management expects that in the coming months,
The sales price will be "sharp drop" (compared to the peak price in April-June),
The gradual decline in raw material prices offset part of the lost profit margin (profit margin)

2) Long-term outlook
Structural changes in demand,
The demand in the glove market after the epidemic compared to before the epidemic,
The usage will be higher,
Especially from developing countries,
Such as emerging markets,
Mainly because of the increase in hygiene awareness.

3) FY2022 plan
Project name: NGC 1.5 (Plant 8-11)
Investment amount: RM 1.7 billion
Plant: 4
Under construction,
FY2022 can start the production operation of the first production line in the first quarter,
The entire project can increase the company's total production capacity up to 19 billion gloves.

4) More projects in the future
Project name: NGC 2.0
Investment amount: RM 3.2 billion
Plant: 7

Project name: NSM KEDAH
Investment amount: RM 7 billion
Plant: 16

5) Upgrade plan of operational efficiency
So far,
The company’s 2 plants (2 out of 7),
Is already completely digital,
Cater to Industry 4.0,
The production speed can reach 45k gloves per line per hour.
There will be more automation and digitization in the coming fiscal year,
The goal of factory automation is to reduce labor costs by 20%

An automated glove packaging system is already being tested.

6) Epidemic prevention
More than 90% of employees have been vaccinated (two doses)

7) Reduce carbon footprint (carbon footprint)
The company has installed many systems to reduce carbon emissions,
Including solar panels, biomass power generation systems, thermal energy emissions in use systems, etc.

QnA

A) How to deal with the profit erosion caused by the lower selling price (ASP)

Answer: The company will strive to improve and improve operational efficiency, especially through automated production solutions.

B) The proportion of foreign workers, how to reduce dependence on foreign workers

Answer: Up to 60% are foreign laborers. Through the recruitment of local employees and automated production, the dependence on foreign labor can be reduced.

C) There are many new glove companies in the market, will they take away their customers?

Answer: Most of the customers are distributors, and they have many years of cooperation experience with the company. Customers will not jump off the ship rashly, and it is not expected to have much impact.

D) How much will the selling price ASP drop? Capacity utilization rate

Answer: In the coming quarter of QoQ, ASP is expected to drop by 30, Q2 (this quarter) capacity utilization rate is 70%, because in July and August only 60% of the labor force

E) The progress of the company's innovative product AMG, and how the latest COATS/MDG series gloves contribute to the company

Answer: AMG is still not certified by the FDA, COATS and MDG will contribute no more than 10% of the business (in the next 3-5 years)

F) Threats from China's new production capacity

Answer: It is undeniable that in the long term, the new production capacity from China will affect the profitability of the entire industry. The company will hedge this risk by improving operational efficiency and achieve the ability to make continuous profits. The company is currently produced in nitrile gloves in the world. The lowest cost will also strive to maintain this position.

G) OEM/OBM strategy

Answer: At present, we are focusing on OEM. We have our own OBM market in China, India and Australia. We will also focus on developing our own brand in the future.

H) How to use the huge amount of cash on hand

Answer: There is no plan to purchase, and cash will be invested in efforts to expand production capacity and improve production efficiency.

Posted by bang_miskin > 2021-09-07 19:39 | Report Abuse

continue:

Summarize:
Although the entire AGM has received many questions from investors, the focus is basically on whether the ASP can be maintained, how to deal with the situation after the ASP decline, competition from China, etc. (the answers can be found in the above narrative)

As a countermeasure, HARTA is mainly through continuous innovation of the management team (institutional management, including the introduction of experienced professional managers from multinational companies), continuous innovation and launch of distinctive products, and automated production lines to reduce production costs and improve production efficiency .

HARTA is a company controlled by long-term management. They said that after the epidemic, they will still be committed to increasing EPS (net profit per share). The company's KEDAH project will also be the next important growth milestone.

Target: The output will reach 95 billion in 2027, and 143 billion after the completion of the KEDAH plant

Some key words of management:
~ The sales price after the epidemic will be higher than before the epidemic, but it is because of the increase in production costs
～The profit rate will be normalized by the end of 2021
~ The United States is unlikely to participate in glove production (prices have fallen, and production costs in the United States are high)

Posted by SeaPearl > 2021-09-07 19:54 | Report Abuse

@bang_miskin
Appreciate your efforts

Posted by Fabien _the efficient capital allocator > 2021-09-07 20:22 | Report Abuse

Management has been very transparent in addressing the various pain points concerning the sector

Posted by goody99 > 2021-09-07 20:33 | Report Abuse

"ASP started to ease in the April to June quarter and is expected to decline by 30% every quarter going forward until 1Q22."

To be honest, this was not the "slow drop" that I expected. Now we have a clearer picture. I see ZERO UPSIDE FOR SOME TIME. Revenues and profits are dropping. Pardon me but I just do not see a reason to keep glove stock for now. And then we have to worry about low ASP and competition maybe for some time. God knows how long we have to wait. if it is a long wait, I think sell now and buy it back later is probably our best choice now.

Posted by niet > 2021-09-07 21:48 | Report Abuse

There are 2 good things which come out from Harta briefing . First the ASP are easing and will stabilise in Q1 2022 but will not drop below US 35. I had computed various scenarios in my earlier postings with ASP s from US 24 , 25, 30 which were lesser than 35 at normalised stabilised states. These scenarios can still give a values of more than rm 6 for supermx.
The other good thing from this briefing is a deterrent from new comers who may think that the super high ASP will be forever. It will be suicidal for the new comers to venture into glove mfg when the ASP will drop to 35 in a year time. Even those smaller players who had started the venture last year or this year may go bust in a year time. The over supply.issue is overblown.
In.a few months time , you can.hear IB.singing a different tunes once they collected enough at current

Posted by Mini2021 > 2021-09-07 21:51 | Report Abuse

The ASP will be at USD 40-50 for many years la...I expect 3-5 years....apa takut??

Posted by Mini2021 > 2021-09-07 21:53 | Report Abuse

one important key point is they started AI.HAHAHAHAHAHAHA 20% reduce work force ....hahahahaha operating profit margin save at least RM 300-500 million per quarter..

Posted by newway > 2021-09-07 21:54 | Report Abuse

Harta's profit for the next 2 to 3 quarters will still be very much higher than the profit level during pre pandemic times. Even if the ASP stabilise at say US40 some time next year , the profit level then will still be substantially higher than pre pandemic times. You can easily verify by simple quantitative calculation yourself. At current price of RM7, Harta is very much under-valued

Posted by newbie8080 > 2021-09-07 23:00 | Report Abuse

A 30% drop in ASP is quite significant.

The CEO mentioned 'expected', means forecast?

Posted by partimeshark > 2021-09-07 23:01 | Report Abuse

all in harta

Posted by Bgt 9963 > 2021-09-07 23:03 | Report Abuse

More competitor coming on streams...

Posted by Sogbashen > 2021-09-07 23:11 | Report Abuse

My prediction accurate , but never thought it will happen so fast. Genm overtake supermax and kossan , next would be topglove and harta. Mark my words, cheers.

Posted by bang_miskin > 2021-09-08 00:20 | Report Abuse

@Sogbashen I also hold a sizable Genting portfolio and still believe in the future of our gloves industry (Harta most of all). Profit will stabilised by next year or so, but some people like us believe that prices forward will exceed pre-pandemic level. When current prices are trading at pre-pandemic level, many of us think it is a steal even when glove price continues to trend downtrend.

I can still vividly remember back in mid 2020. I am holding tight on my Genting shares even when prices dip below RM3. Paper profit was -30% for many months. I believed that one day this pandemic will be over and the entertainment industry will return to normal (new normal). So I am used to experiencing big losses, that's why I am still miskin, although less so given Genting price trend this week :)

Posted by stevenckheng > 2021-09-08 01:32 | Report Abuse

7 billion all in for NSM kedah in the future, why don't they diversify the business instead ?

Posted by JovaneChua > 2021-09-08 01:41 | Report Abuse

From today onwards, rebound will start. Congrats to all holders.

Posted by 8888_ > 2021-09-08 06:57 | Report Abuse

Harta 19.75 sen div why RM 6.91 whereas Kossan latest 12 sen div only RM 3.05?

Posted by Bgt 9963 > 2021-09-08 07:50 | Report Abuse

Gameover for gloves stock...

Posted by dick20 > 2021-09-08 08:05 | Report Abuse

https://www.theedgemarkets.com/article/unusual-occurrence-no-spike-glove-orders-covid19-variant-drives-pandemic-resurgence-%E2%80%94

Posted by dick20 > 2021-09-08 08:06 | Report Abuse

https://www.theedgemarkets.com/article/glove-asp-margin-likely-normalise-1q22-prices-will-remain-above-precovid19-levels-%E2%80%94

Posted by newbie2828 > 2021-09-08 08:20 | Report Abuse

wait till you guy see the jaw dropping qtr result from TG then you will have some feel of asp impact

Posted by JovaneChua > 2021-09-08 08:22 | Report Abuse

35 mins to go, let's see who is right.

Posted by Mini2021 > 2021-09-08 09:16 | Report Abuse

Harta TP RM 3

Posted by LossAversion > 2021-09-08 09:22 | Report Abuse

@Mini2021, if that is true, I will confidently buy more!!!! But unfortunately, most likely will not happen..

Posted by Foreign_Invest > 2021-09-08 09:33 | Report Abuse

price 6.5 will stable

Posted by Loh Kok Wai W > 2021-09-08 09:38 | Report Abuse

all glove counters will downtrend...let's see.

Posted by Bgt 9963 > 2021-09-08 09:40 | Report Abuse

Prices will go sideways...

Posted by calvintaneng > 2021-09-08 09:41 | Report Abuse

Sell harta & buy TSH or TAANN NOW!

See

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-09-08-story-h1570785922-REPOSTED_ARTICLE_WHY_GLOVES_ARE_FACING_HEADWINDS_AS_ILLUSTRATED_BY_CRYS.jsp

Posted by NatsukoMishima > 2021-09-08 09:47 | Report Abuse

Must have very strong heart to hold n fight ! Almost give up right now but still believe in a good FA company will have good price eventually !

Posted by goody99 > 2021-09-08 09:51 | Report Abuse

"ASP started to ease in the April to June quarter and is expected to decline by 30% EVERY quarter going forward until 1Q22."

Posted by bang_miskin > 2021-09-08 09:55 | Report Abuse

bang_miskin no stranger to big losses. if you truly believe in this company, any drastic drop in price gives you an opportunity to beli. Bang_miskin regrets not having enough cash to beli today.

Whether buy or sell, most important is not to make big decision under duress.

Posted by bang_miskin > 2021-09-08 10:00 | Report Abuse

"ASP started to ease in the April to June quarter and is expected to decline by 30% EVERY quarter going forward until 1Q22."

I see this as somewhat of a good thing. If ASP do indeed drop drastically in the coming months, it will deter new entrant into the industry. Orang China bukan bodoh. Tak boleh untung, kenapa nak rebut2 masuk?

Posted by sheldon > 2021-09-08 10:02 | Report Abuse

The best way to counter the China threat is to wait patiently.

When the short sellers overdo it or when investors are excessively panicky, causing the share price to tumble way below what Harta feels is the intrinsic value, do a share buyback.

Keep scooping up repeatedly every time this happens and in the long run, we'll get a decent EPS which will translate into higher share prices.

Posted by pdchs > 2021-09-08 10:04 | Report Abuse

Orang China bukan bodoh... this statement not 100% wrong...
Should be

All businessman in the world not bodoh.....

Posted by Mini2021 > 2021-09-08 10:07 | Report Abuse

Go go go Rm 6 first....

Posted by bang_miskin > 2021-09-08 10:17 | Report Abuse

Posted by pdchs > Sep 8, 2021 10:04 AM | Report Abuse

Orang China bukan bodoh... this statement not 100% wrong...
Should be

All businessman in the world not bodoh.....

Okay your statement is more correct than mine. I am addressing current concern with competition from China. If you ask me, China really wants to up its game in the semiconductor industry. If really want to worry about China threat, that's the sector to worry about in medium/long term.

Posted by calvintaneng > 2021-09-08 10:21 | Report Abuse

Posted by bang_miskin > Sep 8, 2021 10:17 AM | Report Abuse

Posted by pdchs > Sep 8, 2021 10:04 AM | Report Abuse

Orang China bukan bodoh... this statement not 100% wrong...
Should be

All businessman in the world not bodoh.....

Okay your statement is more correct than mine. I am addressing current concern with competition from China. If you ask me, China really wants to up its game in the semiconductor industry. If really want to worry about China threat, that's the sector to worry about in medium/long term.


Bang miskin?

Poor brother???

Aiyoyo!

You must not waste time in gloves or you sure to be "miskin"

Go and buy TSH or TAANN then change ID to Boss Kaya!

Posted by HrryPttr > 2021-09-08 10:35 | Report Abuse

Glove die. Confirm

Posted by Ryan83 > 2021-09-08 11:31 | Report Abuse

Hartalega selling down heavily today after yesterday approved final dividend 19.75 sen

Posted by bang_miskin > 2021-09-08 11:41 | Report Abuse

Sell upon news is to be expected. Too bad no more ammo to top up.

Posted by Gkhan > 2021-09-08 11:49 | Report Abuse

maybe tomolow rebound,or tomolow,tomolow.sure one

Posted by CharlesT > 2021-09-08 11:49 | Report Abuse

ASP will be normalised by Q1 2022...China mari....The outlook of glove seems very negative