PETALING JAYA: HLT Global Bhd (HLT Global), which is en route to listing on the ACE Market of Bursa Malaysia on Jan 10, is expected to deliver a potential upside of 11.1% from its offer price of 45 sen per share.
PublicInvest Research gave a fair value of 50 sen for HLT Global, whose core activities include the designing and manufacturing of glove-dipping lines.
At 50 sen per share, it is based on 11 times its earnings per share for financial year 2017 (FY17). HLT Global is expected to see its FY17 earnings growth boosted by higher production capacity and its RM69mil order book in 2017.
It plans to use proceeds for capital expenditure and working capital purposes.
The company, which has a clean balance sheet with a net cash of RM18mil, plans to grow production capacity by setting up a new factory and expand its offering of products.
HLT Global is operating at high utilisation rates of over 80% and to increase its production floor space, it is important to set up a new factory.
HLT Global’s annual revenue depends on the orders secured and implemented each year. “In FY15, the group derives over 54% of its sales from local market and the remaining from overseas markets, Thailand predominantly,” the research firm.
“As the rubber glove industry is expected to maintain its growth trajectory, driven by growth in the healthcare sector, HLT Global will continue to seek opportunities in both domestic and export markets within the glove-dipping line industry,” it said.
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