For QE30/6/2019, Harta's net profit rose 3% q-o-q but dropped 25% y-o-y to RM94 million while revenue dropped 6% q-o-q or 9% y-o-y to RM640 million. Revenue dropped q-o-q mainly due to decrease in sales volume for the quarter. Profit before tax for the quarter increased by RM8.0 million or 7.0% as compared with preceding quarter mainly due to lower cost of upkeep, electricity and packaging.
Table: Harta's last 8 quarterly results
Graph: Harta's last 47 quarterly results
As at 30/6/2019, Harta's financial position is deemed healthy with current ratio at 2.56x and gearing ratio at 0.31x.
Harta (closed at RM5.05 yesterday) is trading at a trailing PER of 40 times (based on last 4 quarters' EPS of 12.58 sen). At this PER, Harta is deemed overvalued.
Harta is in an uptrend line, with support at RM4.80.
Chart 1: Harta's daily chart as at Aug 6, 2019 (Source: Malaysiastock.biz)
Chart 2: Harta's monthly chart as at Aug 6, 2019 (Source: Malaysiastock.biz)
Based on weaker financial performance and demanding valuation, I rate Harta as a SELL or TAKE PROFIT.
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