Hartalega posts record earnings in 2Q, net profit leaps five times to RM544.9m

Hartalega posts record earnings in 2Q, net profit leaps five times to RM544.9m
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KUALA LUMPUR (Oct 27): Hartalega Holdings Bhd has recorded its best-ever quarterly net profit at RM544.96 million in the second quarter ended Sept 30, 2020 (2QFY2021), which is about five times the RM103.87 million posted last year.

Earnings per share likewise surged to 15.95 sen versus 3.09 sen previously, the group’s filing with the local bourse showed.

Quarterly revenue jumped 89.73% to RM1.35 billion from RM709.42 million in 2QFY2020.

The group attributed the stellar earnings growth to higher sales revenue, higher average selling price, lower material costs and better production efficiency.

For the cumulative six-month period of FY2021 (6MFY2021), net profit skyrocketed by a whopping 286.34% to RM764.68 million, from RM197.93 million last year, while revenue rose 67.92% to RM2.27 billion from RM1.35 billion.

Meanwhile, the board has recommended a first interim dividend of 3.85 sen per share to be paid on Dec 18, 2020 with an entitlement date of Dec 4, 2020.

This brings the total dividend payout to 5.95 sen per share for 6MFY2021, 2.25 sen higher than the 3.7 sen dividend paid in 6MFY2020.

Moving forward, the group said it remains optimistic of the longer-term prospects underpinned by growing demand for rubber gloves and ongoing expansion plans.

It said that in line with the growing demand for rubber gloves globally, the group will continue with its Next Generation Integrated Glove Manufacturing Complex (NGC) capacity expansion plans.

To date, all 12 production lines in Plant 6 of the NGC facility are fully commissioned.

“Plant 7, which caters to specialty products, is expected to begin commissioning in the fourth quarter of year 2020 and will have an annual installed capacity of 2.7 billion pieces. With the progressive commissioning of Plant 7, the group’s annual installed capacity is expected to increase from the current 41 billion to 44 billion pieces by the financial year ending March 31, 2022 (FY2022),” it added.

At noon break, Hartalega shares rose 68 sen or 3.85% to RM18.36, bringing its market capitalisation to RM62.86 billion. Some 3.28 million shares were traded.  

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Hartalega shares surge 6.5% after 2Q earnings soar five times to record RM544.9m

Lam Jian Wyn