Skip to main content

Featured Post

High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Post a Comment

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.

Labels:

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

3M Raises Profit Forecast After Beating Quarterly Estimates on Electronics Demand

3M Co raised the lower end of its full-year adjusted profit forecast after strong demand for electronics and industrial products helped the company surpass quarterly profit expectations. Shares of 3M were up 4.2% at $140.5 in pre-market trading. An increase in demand for electronics used in vehicles and mobile phones boosted profits for the company, which had previously faced challenges as high inflation led consumers to delay major purchases. The industrial sector is also expected to benefit from the recent US Federal Reserve decision to cut borrowing costs in September, encouraging more consumer spending. 3M has implemented cost-cutting measures, including job reductions and spinning off its healthcare business, to counter the impact of a demand slowdown . Key highlights from the report: Sales in the transportation and electronics segment grew 1.8% year-on-year. Sales in the safety and industrial segment , which produces adhesives for industrial use, increased by 0.5% . 3M&
Post a Comment
Read more

A Trader’s Guide to Navigating Malaysia's Budget 2025

Malaysia’s consumer and construction stocks are poised to benefit from Budget 2025 , as Prime Minister Datuk Seri Anwar Ibrahim is expected to introduce measures aimed at lowering the cost of living and unveiling infrastructure projects . As both Prime Minister and Finance Minister, Anwar will likely announce targeted cash transfers , civil servant salary hikes , and potential revisions to the minimum wage to boost disposable incomes, supporting retailers like AEON Co and Padini Holdings . In the construction sector, analysts expect the budget to include new projects such as the Mass Rapid Transit Line 3 and Pan Borneo Highway , with companies like Gamuda , Sunway Construction , and IJM Corp set to benefit. There could also be updates on the Johor-Singapore High-Speed Rail and cross-border economic zones, reigniting interest in the sector. The government’s commitment to growing semiconductor industries may lead to support measures for data center developers like YTL Power Int
Post a Comment
Read more