Hartalega profit affected by ‘intense’ competition

Analysts have cut their earnings forecasts for Hartalega, and also lowered their target prices, due to intense market competition from an oversupply and the normalising of average selling prices.

PETALING JAYA: The operating environment remains competitive for glovemakers such as Hartalega Holdings Bhd, which saw its net profit for the first half of financial year 2023 (1H23) decline 96.3% from a year ago to RM116.6mil. In research reports released yesterday, analysts have cut their earnings forecasts for Hartalega and also lowered their target prices, due to intense market competition from an oversupply and the normalising of average selling prices (ASPs).

Apex Securities Bhd said that glovemakers are experiencing rising operating costs due to higher natural gas prices, electricity tariffs and the new minimum wage. It added the global oversupply situation has forced the industry to operate at a suboptimal utilisation level.