Bearish outlook for Hartalega

HLIB Research revised lower its FY24 and FY25 earnings forecast for the glove maker to a net loss of RM128.6mil and profit of RM123.8mil.

PETALING JAYA: Hartalega Holdings Bhd’s decision to decommission its production facility at Bestari Jaya in Selangor has analysts anticipating another poor financial year for the nitrile glove maker after a weak close to its financial year 2023 (FY23) with a net loss of RM218mil.

Hong Leong Investment Bank (HLIB) Research revised lower its FY24 and FY25 earnings forecast for the glove maker to a net loss of RM128.6mil and profit of RM123.8mil (from RM74.3mil/RM124.2mil) respectively, as it took into account the anticipated provision for retrenchment and contract obligation expenses of about RM70mil (over the next six months) from the decommissioning exercise.