KUALA LUMPUR (April 1): AllianceDBS Research has downgraded Hartalega Holdings Bhd to “Hold” at RM8.67 with an unchanged target price of RM8.45 and said the progress at Hartalega’s Next Generation Complex (NGC) had been brisk, with six out of the 24 production lines (from Plants #1 and #2) having already started commercial production as at end-March 2015.

In a note today, the research house said as such, Hartalega’s management was confident that the first two NGC plants are on track to be fully operational by Jan/Feb 2016.

AllianceDBS Research said Hartalega’s recent share price performance was impressive.

It said the stock had rallied by 26% since the research house upgraded the stock to Buy on 2 Dec 2014.

“The stock is now trading at 23x FY16F P/E, which is slightly more than 1SD above its 5-year mean P/E. At current share price, we believe the market has priced in NGC’s earnings prospects.

“We are downgrading our rating on the stock to Hold, as our RM8.45 target price has been achieved,” it said.