Last Friday, Harta announced its results for FYE Mar 31, 2009. It was a very good set of results, especially the 4Q2009. For the last quarter, Harta's net profit increased by 39.5% q-o-q or 148% y-o-y to RM31 million while its turnover increased by 4.8% q-o-q or 72% y-o-y to RM125 million. The better performance was due to net insurance compensation of RM5.4 million for 4Q2009 (compared to RM1.1 million fro 4Q2008); higher nitrile sales mix (which enjoyed higher profit margin); more favorable movement in exchange rate of US Dollar; & lower price of raw materialfro both synthetic & natural latex.
Assuming that Harta can maintain its profitability level for FY 2010 similar to 4Q2009, then Harta's EPS would be about 48 sen. At its closing price of RM3.50 as at last Friday, Harta will be trading at a forward PE of 7.3 times. That means Harta is still relatively inexpensive despite a price run-up of 130% over the past 6 months. The daily chart is given below.
Chart: Harta's daily chart as at 15/5/2009 (Source: Quickcharts) Based on good financial performance, attractive valuation & positive technical outlook, Harta remained a good stock for either trading BUY or long-term investment.
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