Maybank Investment Bank (Maybank IB) reaffirms a ‘buy’ rating for Hartalega Holdings Bhd (KL) at RM3.19, maintaining an unchanged target price (TP) of RM4.50.
The glove maker’s average selling price (ASP) outlook is improving as it passes higher raw material costs to customers. If demand surges due to tight supply, ASPs could further improve.
Maybank IB said that the worst is over, and the glove sector is poised to recover from a nearly three-year downturn.
“We continue to like Hartalega for its hands-on management, proven track record in technology and product quality, and strong balance sheet (with net cash of 40 sen per share).
“We peg Hartalega’s valuation to its historical price-to-book value mean of 3.2 times. In our view, this methodology is useful for evaluating turnaround sectors/stocks,” Maybank IB said.
Maybank IB expects raw material costs to trend down post the natural rubber wintering season from May 2024. With stable ASPs and better cost efficiency, Hartalega anticipates stronger earnings, signaling recovery from a nearly three-year downturn. Hartalega’s strong management, technology, and balance sheet contribute to its positive outlook.
Easing crude oil prices, which have slipped below US$89 per barrel, helping to ease inflation…
FBM KLCI rebounds on regional optimism; technology sector in focus, energy pressured, resistance seen at…
Global markets mixed; Fed decision, inflation data, and Big Tech earnings in focus amid semiconductor…
Senate passes Competition Bill 2026, boosting MyCC powers against cartels and monopolies, with merger control…
Anwar blames Felda’s RM10 billion losses on mismanagement and political interference, pledges reforms to protect…
AMRO upgrades Asean+3 growth to 4.1% in 2026, citing AI demand, but warns risks from…
This website uses cookies.
