KUALA LUMPUR: Shares in glove manufacturer Hartalega Holdings Bhd
fell in early trade on Wednesday after it disclosed a RM101.36 million additional tax bill from the Inland Revenue Board (LHDN) and reported weaker first-quarter earnings.
At 10.07 am, the counter dropped six sen, or 4.55 per cent, to RM1.26, with 12.08 million shares changing hands.
In a filing to Bursa Malaysia on Tuesday, the company said its wholly owned subsidiary, Hartalega NGC Sdn Bhd, had received a notice of additional assessment from LHDN for the years of assessment 2017 to 2022.
Hartalega said it is seeking legal advice and evaluating its options, which may include filing a formal appeal.
For the first quarter ended 30 June 2025, the group posted a lower net profit of RM12.61 million, compared with RM31.93 million a year earlier. Revenue declined to RM553.11 million from RM583.84 million previously.
Public Investment Bank Bhd said it expects Hartalega to remain under pressure due to rising operating costs, persistent overcapacity in the sector, and intense price competition from regional players, particularly in China.
"Pricing pressure is expected to persist, especially in non-US markets, where Chinese manufacturers continue to offer products at a steep discount of a cumulative US$14-15 per 1,000 pieces,” it said in a note today.
The investment bank maintained its ‘neutral’ rating on Hartalega, while lowering its target price to RM1.44 per share. - Bernama
