HLT Global makes strong debut on Ace Market

  • Markets
  • Tuesday, 10 Jan 2017

UOB Kay Hian Malaysia Research expects Malaysian equities to be energised in 1H17 by a firmer ringgit and general election buzz.

KUALA LUMPUR: Glove-dipping lines manufacturer HLT Global Bhd made a strong debut on on Bursa Malaysia’s Ace Market on Tuesday when it opened at 55 sen or 10 sen above its offer price of 45 sen.

At 9.03am, it was trading at 57 sen, up 12 sen with 11.13 million shares done.

The FBM KLCI rose 0.43 of a point or 0.03% to 1,668.33. Turnover was 108.40 million shares valued at RM34.34mil. There were 68 gainers, 64 losers and 144 counters unchanged.

PublicInvest Research said HLT Global was expected to deliver a potential upside of 11.1% from its offer price of 45 sen per share. 

It accorded 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. 

Its offer of  13.2 million new shares to the Malaysian public was oversubscribed by 24.64 times.

HLT Global had net cash of RM18mil and plans to expand production capacity by setting up a new factory and expand its offering of products.

The company 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.

PublicInvest Research said 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,” it said.
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