KUALA LUMPUR: Investors in Hartalega Holdings Bhd
turned to profit-taking on Wednesday after buying up the share yesterday on the back of a positive quarterly result.
Shares in the glove maker closed at RM2.65 apiece yesterday, representing a 6.85% increase, after the group announced an 11-fold year-on-year improvement to its bottomline in its first financial quarter.
On Wednesday, the glove maker's shares opened higher at RM2.71 a share, a six sen increase over the previous day's closing price, but fell thereafter to a low of RM2.57 a share as investors cashed in on gains amid a cautious market environment.
As at 9.23am, Hartalega saw 2.6 million shares changing hands at a last done price of RM2.60 a share.
RHB Research said in a note that it remained bullish on Hartalega given the continued recovery in the glove industry's demand-supply dynamics.
"With the industry excess capacity gradually dissipating, we expect to see a demand-supply equilibrium by the end of 2024," it said.
However, the research firm said it cut FY25-26 earnings estimates by 9% and 7% to account for the weakening US dollar, ariving at a lower target price of RM3.55 (from RM4.10 previously).
Kenanga Research kept its view that the demand-supply situation will only head towards equilibrium in 2026 when there is no more new capacity coming onstream and global demand for gloves continues to rise.
It maintained its target price at RM2.33 and an "underperform" recommendation.
Meanwhile, Phillip Capital Research in its latest update reiterated a target price of RM4.10 and a "buy" rating on Hartalega.
"We continue to like Hartalega for its solid execution track record, superior cost structure, and healthy balance sheet backed by a high net cash level and the recent US tariff imposition on Chinese glovemakers in 2026," it said.
