KUALA LUMPUR (Nov 5): Hartalega Holdings Bhd's net profit for the second quarter ended Sep 30, 2015 (2QFY16) increased by 25.4% to RM60.41 million or 3.69 sen per share, from RM48.16 million or 3.13 sen per share a year ago due to the increase in contribution from its Next Generation Complex new production lines.

In its filing to Bursa Malaysia today, the glove manufacturer also reported a 37.8% jump in 2QFY16 revenue to RM379.35 million, from RM275.24 million in 2QFY15 due to the strengthening of the US dollar against the ringgit, as well as the group's production capacity expansion.

The group declared its first interim dividend of two sen per share in respect for FY16, payable on Dec 30, 2015.

For the first half of FY16 (1HFY16), Hartalega recorded a net profit of RM123.09 million or 7.51 sen a share, which is 17% higher than its 1HFY15 net profit of RM105.25 million or 6.84 sen a share, in line with the group's continuous expansion in production capacity and increase in demand.

Revenue for 1HFY16 also increased by 26.2% to RM699.86 million from RM554.44 million a year ago, thanks to its expansion efforts and a stronger greenback against the ringgit.

On its prospects, Hartalega said the group is optimistic that it will achieve its internal growth target for FY16.

"On the back of a strong demand for nitrile gloves, we are confident that Hartalega's profit margins will remain above the industry average," it said.

Hartalega shares closed up five sen or 0.97% at RM5.22 giving it a market capitalisation of RM8.57 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)