Hartalega Holdings Bhd ('Harta'), which is involved in the manufacturing of latex & nitrile gloves, has announced its results for 3Q2009 ended 31/12/2008. Its net profit increased by 21.0% q-o-q or 119.5% y-o-y to RM22.2 million while its turnover increased by 6.8% q-o-q or 65.4% y-o-y to RM119 million. The improvement in net profit is attributable to lower cost of raw material & favorable exchange rates.
If we annualized the latest quarterly EPS, we can expect Harta's full year EPS to be about 36 sen. Based on this & current price (at RM2.06 as at 9.30 am today), Harta's PE is about 5.7 times. At this low PE, I see further upside to this stock.
Chart: Harta's daily chart from Feb 16, 2009 (source: Tradesignum.com)
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