CIMB Research sees earnings growth for Hartalega slowing down

KUALA LUMPUR: CIMB Equities Research sees nitrile glove maker Hartalega’s earnings growth appearing to slow down and expects it to reduce further in FY15 as capacity expansion slows and competition heats up.

“Hartalega remains a Neutral as we expect weak selling prices due to supply growth to offset demand. Our target price rises after increasing FY13-15 core EPS by 2-5% due to higher utilisation as our estimate was too low,” it said.