Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (April 3): Hong Leong IB Research has maintained its “Hold” rating on Hartalega Holdings Bhd with a higher target price of RM8.45 (from RM7.43) and said it organised a plant visit to Hartelega NGC in Sepang and came back feeling neutral with slight positive bias by looking at the progress of NGC. 

In  a note today, the research house said that currently, Plant 1 and Plant 2 were running with three production lines each and we were guided that every month, one production line will be added on every plant.

“We understand that Hartalega just commenced earthworks for Plant 3 and Plant 4.

“We also learnt that speed of production line now improved to 45,800 pcs per hour per line, consistently higher that industry’s average.

“We raise our target price from RM7.43 to RM8.45 as we lift our target P/E from 16.2x to 18.4x as we update the latest figure. Our valuation is pegged to Hartalega’s CY16 EPS, based on 1SD above 5-year historical average P/E. Maintain Hold,” it said.

 

      Print
      Text Size
      Share