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Nvidia CEO Optimistic About Global Tech Cooperation Under Trump Administration

Nvidia CEO Jensen Huang expressed confidence that global collaboration in science and technology will persist, even amid potential tighter export controls from the incoming Trump administration. Huang on Global Cooperation Despite the Trump administration’s previous restrictions on exporting US technology to China, Huang believes international collaboration remains essential. “Open science and global cooperation across math and science have been the foundation of societal and scientific advancements for a very long time,” Huang stated during a media session in Hong Kong. He emphasized Nvidia's commitment to balancing compliance with laws and policies while continuing to advance technology and serve customers globally. The Age of AI During a speech at the Hong Kong University of Science and Technology (HKUST) , Huang declared, “The age of AI has started — a new computing era that will impact every industry and every field of science.” Highlighting Nvidia’s innovations, he describe
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Hartalega’s 1QFY2025 Earnings Improving

Hartalega Holdings Bhd is poised for a substantial increase in core net profit for the first quarter of FY2025, according to RHB Investment Bank (RHB IB). The expected improvement is attributed to higher product prices and increased volume.

RHB IB anticipates Hartalega will report core earnings of RM20 million to RM25 million for the first quarter ending June 30, 2024 (1QFY2025). This is a significant jump from RM1.8 million in the fourth quarter of FY2024. Hartalega is set to announce its earnings on August 6.

Key Highlights:

  • Average Selling Prices (ASP): ASPs rose 5% quarter-on-quarter, with improved demand outlook and operational efficiency.
  • Revenue Growth: Revenue likely increased by 13.6% to RM602 million in 1QFY2025.
  • Cost Increase: Estimated 3% rise in costs due to higher nitrile and natural gas prices.
  • Net Margin: Expected to improve to 4% from 0.3% in 4QFY2024.

RHB IB's Perspective:

  • Valuation Re-rating: RHB IB maintains a bullish stance, suggesting a valuation re-rating is justified based on positive market dynamics.
  • Rating and Target Price: RHB IB maintains its “buy” rating on Hartalega with a target price of RM4.10, based on a discounted cash flow valuation.
  • Earnings Estimate: No changes were made to the earnings estimate, but RHB IB believes an improvement is on the horizon.

Industry Outlook:

  • Robust Balance Sheet: Hartalega is favored for its strong balance sheet and efficient operating model.
  • Medical Glove Sector Recovery: The company is seen as a key beneficiary of the recovery in the medical glove sector.
  • Market Dynamics: Customers are now more receptive to ASP increases, improving operating dynamics for glove manufacturers.
  • Profitability Outlook: The pricing gap between Malaysian and Chinese glovemakers is narrowing, which is expected to enhance profitability. Malaysia’s glove export volume rose 8% quarter-on-quarter and 29% year-on-year in April-June.

Hartalega’s performance in the upcoming quarters looks promising with an anticipated boost in profitability and favorable industry trends supporting its growth.

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