KUALA LUMPUR: Hartalega Holdings Bhd reported a higher net profit of RM55 million in the fourth quarter of financial year ended March 31, 2015 (4QFY15), against RM49.3 million a year ago on higher sales and adjustment of tax rates.

Hartalega (fundamental: 2.6; valuation: 0.5) declared a third interim dividend of three sen per share for FY15. This raised the total dividend for the year to 13 sen per share compared with 14.5 sen per share the year before.

Its revenue for 4QFY15 stood higher at RM305.1 million from RM280.3 million a year earlier.

The increase in revenue was attributable to the start-up of the group’s next-generation integrated glove manufacturing complex (NGC) facilities in December last year, it said.

Hartalega said to date, there are eight production lines operating in the NGC, equivalent to an additional capacity of 2.9 billion pieces of gloves per annum.

For the full year, Hartalega recorded a lower net profit of RM209.6 million, or 27 sen per share, against RM232.8 million, or 31.3 sen per share in FY14.

The group said operating profit margin was impacted by lower average selling price as a result of declining raw material costs and more competitive selling price. It was also impacted by the start-up cost of the NGC.

Revenue for FY15 grew 3.5% to RM1.145 billion from RM1.107 billion in FY14 due to higher sales volume.

On prospects ahead, Hartalega managing director Kuan Mun Leong said when the NGC comes fully on stream, the group will be able to strengthen its position given the significant increase in production capacity and improved capabilities.

“Taking a long-term perspective, prospects are bright for the group and we remain confident about growing our market share in the coming years ahead,” he said.

Hartalega shares gained six sen to close at RM8.22 yesterday, with a market capitalisation of RM6.59 billion.

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This article first appeared in The Edge Financial Daily, on May 6, 2015.