Haha the Latest QR is still Positive, if not due to the Impairment of :
>> The glove maker incurred a massive impairment of RM347 million as a result of the decommissioning of its plant in Bestari Jaya, with the one-off impairment dragging Hartalega into the red. Meanwhile, its quarterly revenue plunged 46.7% to RM515.74 million from RM968.69 million a year prior.
dun forget some fool went and bought a 60 year old plant at 500 units shares below EOQ of 600 units coz already spend all his money DiuKai
Posted by Sslee > 1 hour ago | Report Abuse
I do not think a 15 years plant is consider old and inefficient. The only reason for closing is overcapacity and running at very low capacity that caused high overhead cost
By the way Harta Capital Commitments Capital commitment in respect of Property, Plant and Equipment as at end of the current quarter and financial year-to-date are as follows: - 31 Mar 2023 RM'000 Approved and contracted for 472,163
So it is just between a hard place and a lock scale down expansion or close some plant.
I think there are many people still could not really understand what is impairment loss. That is why they only able to simply read through a financial statement and come to a conclusion base solely on its Net Profit or Loss.
Impairment loss is when a boson and a fermion previously with entanglements totalling 2 spin number depairs and detangles spontaneously after being exposed to 10 tetraquarks.
I think the worst is over for harta after reading quarter report. But not chasing on this goreng price. Have to wait for profit taking and mkt to cool first.
Top glove and others will continue to report losses in next 2 quarters at least. Price war is still not over...It will take more time for industry to consolidate.
Still NEUTRAL, higher MYR2.38 TP (DCF) from MYR2.11, 5% upside. Hartalega returned to the black with its 4QFY23 (Mar) earnings, bringing FY23 core earnings to MYR109m – at 84% and 87% above Street’s and our expectations – underpinned by a pick-up in volumes sold during 4QFY23. Management’s tone was slightly upbeat, as the decommissioning of obsolete plants (expected to be completed by end 2023) and normalisation of raw material prices could offer some breathing space, moving forward. Results overview. Hartalega delivered 4QFY23 core earnings of MYR36m from a net loss of MYR38m in 3QFY23, bringing FY23 to MYR109m (-97% YoY) – at 84% and 87% above Street’s and our expectations. Volumes sold picked up 25% QoQ to 5.7bn pieces, offset by a 6% QoQ decline in ASPs to c.USD20.50 per 1000 pieces. Cost. YTD, acrylonitrile and latex costs were down 4% and up 2% respectively. Gas tariffs were down 14-15% QoQ and are expected to trend further downwards, in view of the normalisation of natural gas prices. Outlook. We remain cautiously optimistic on Malaysia’s rubber glove sector, with the industry’s excess supply capacity expected to slow down glovemakers’ capacity expansions in the near term. However, there are improvements in market dynamics, such as: i) The collective cost passthrough initiated by local and regional peers; ii) correction in natural gas prices (YTD: -50%); and iii) a disciplined approach in scaling back new capacity plans. While cost-pass-through remains challenging in the near term, ASPs are holding up at c.USD20 per 1000 pieces. Post the decommissioning of the Bestari Jaya plant, the group is looking to commission NGC1.5 progressively by end 2023 or early 2024, depending on market dynamics. Earnings adjustment. We raised our earnings estimates by 11% and 1% for FY24-25, after factoring the potential commissioning of NGC1.5 (in Jan 2024) and better plant utilisation rates, with customer inventory expected to be fully depleted by end 2023. Still NEUTRAL. Post earnings adjustment, we derived a higher TP of MYR2.38, which implies CY24 P/E of 22x vs the pre-pandemic 5-year historical mean of 27x. Our TP includes a 2% ESG discount, based on Hartalega’s 2.9 ESG score. Key risks: Higher/lower-than-expected sales volumes, stronger/weaker-than-expected USD to MYR, lower/higher-than expected raw material prices. - RHB Investment Bank - 10 May 2023
Yes not sustainable (in short term at least). Intco loss around CNY150m last quarter. They still have a lot of bullet to fight mkt share in next 1 year at least.
Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation’s return to target is unlikely before 2025 in most cases.
In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent.
Powell wants higher Unemployment rate and curb higher spending. Cost of Goods to fall but inching up Interest rate could spell the opposite for Housing numbers.......juggler.
Tentative signs in early 2023 that the world economy could achieve a soft landing—with inflation coming down and growth steady—have receded amid stubbornly high inflation and recent financial sector turmoil. Although inflation has declined as central banks have raised interest rates and food and energy prices have come down, underlying price pressures are proving sticky, with labor markets tight in a number of economies. Side effects from the fast rise in policy rates are becoming apparent, as banking sector vulnerabilities have come into focus and fears of contagion have risen across the broader financial sector, including nonbank financial institutions. Risks to the outlook are heavily skewed to the downside, with the chances of a hard landing having risen sharply.
Not bounded to US markets and all across the globe. UK inflation figures is fearsome.....highest in decades and Sunat (small incision to genital) is facing loud voices in House of Rep..
lets say if the price back to pre pendamic around RM4, the current price is still seem attractive even after 20% increase yesterday. Even if the price is not going back pre pendemic level, the dividen is still attractive with 0.1sen( according to 2020). 0.1/2.25(current share price)= 4.44%. which means the dividen is still quite good.
But eventually the dividen will increase to around 0.12-0.15 and the share price will also increase to around RM4 , by then the dividen yield will be 0.15/2.25=6.66% and just imagine the capital increase as the topping on the ice cream and just enjoy the main dish ( dividen of 6% and increasing yearly).
For UK it was the sum of all failures. UK Supermarkets instituted food rationing recently, something that was last done during World War 2 due to Global Warming. When you check out in UK, the cashier will count the number of potatoes, number of tomatoes etc that you are actually allowed to buy. Practically 100% importation of food from North African countries jacked up inflation by 2 to 3 times
Why UK supermarkets are rationing fruit and vegetables By Anna Cooban, CNN Updated 9:02 AM EST, Thu February 23, 2023
London CNN — Major UK supermarkets have started rationing the sale of some staple fruits and salad vegetables, blaming poor weather in Spain and north Africa for shortages that the UK government warned could last a month.
Tesco (TSCDF), the UK’s biggest supermarket, confirmed to CNN Wednesday that it had temporarily capped the number of packs of tomatoes, peppers and cucumbers to three per customer.
Asda told CNN that it was temporarily limiting purchases of some items to three packs per customer. These include tomatoes, peppers, cucumbers and lettuce.
Morrisons told CNN that it had imposed a cap of two packs per customer on tomatoes, peppers, cucumbers and lettuce. And Aldi, a German discount grocery chain, announced that it would also introduce a limit of three packs per person on peppers, cucumbers and tomatoes in its UK stores.
In their latest Videos and media, British were lashing out at the King's Coronation splurging hundreds of millions Pound while the homeless and financial crisis looms large.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Mikecyc
45,029 posts
Posted by Mikecyc > 2023-05-10 08:29 | Report Abuse
Haha the Latest QR is still Positive, if not due to the Impairment of :
>> The glove maker incurred a massive impairment of RM347 million as a result of the decommissioning of its plant in Bestari Jaya, with the one-off impairment dragging Hartalega into the red. Meanwhile, its quarterly revenue plunged 46.7% to RM515.74 million from RM968.69 million a year prior.