M & A Securities maintains Buy on Hartalega, ups fair value to RM6.90

Business & Markets 2013
Written by theedgemalaysia.com
Wednesday, 08 May 2013 08:54
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KUALA LUMPUR (May 8): M & A Securities has maintained its Buy
rating on HARTALEGA HOLDINGS BHD [] and raised its fair value to
RM6.90 (from RM6.50) after the company posted a 25% rise in profit
after tax (PAT) to RM62.42 million in the fourth quarter ended March 31,
2013 (4QFY13) from RM50.06 million a year earlier.
Hartalega had said its revenue rose 12.3% to RM269.77 million.
"These results are due to our meticulous strategy and planning. We are
committed to improving our efficiencies with a view to expanding
capacity, and we are confident that we will continue to do this in the new
financial year,” Hartalega managing director Kuan Mun Leong said.
For the full year, PAT rose 17% to RM235.05 million from RM201.43
million a year earlier while revenue climbed 11% to RM1.03 billion from
RM931.06 million.
In a note Wednesday, the research house said Hartalega’s turnover rose by 3.93% q-o-q and 12.30% y-o-y to RM269.77
million in 4Q13 compared to RM259.57 million in 3Q13 and RM240.22 million in 4Q12.
The increase in revenue contributed to the Group’s continuous expansion in production capacity and increase in demand, it
said.