HARTA usage rate fell to 41% in the latest quarter
HARTA's newly announced turnover is a new low in the past 7 years, mainly because the production usage rate is only 41%, down from 54% in the previous quarter. It was previously predicted that HARTA's performance should remain flat or fall slightly; this time, the results are really below the author's expectations.
HARTA will stay alive and reduce operating costs in 2023, shut down the Bestari Jaya plant to reduce staff and reduce expenses. Depreciation fell RM9 mil in the latest quarter.
The company still has Net Cash RM1,530 mil, which is enough to survive the cold winter in the gloves sector. Excluding One Off Expenses, this quarter's Normalized Profit Before Tax is RM2 mil, and last quarter's Loss Before Tax is RM13 mil. Cost control has clearly been improved; what we are waiting for now is for the market to absorb excess supply.
The recovery in the gloves sector is coming more slowly than expected, and HARTA will also have RM23 mil of factory shutdown expenses in the next few quarters, so it is difficult to predict profit/loss after tax. There will still be short-term challenges; it is more difficult to break through stock prices that lack profit to support them.
After 3 years of tribulations, I hope the glove stock will shine in 2024.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
投资座右铭：价值为主，技术为辅，心态之上
在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。
7926Followers
12Following
14KVisitors
Follow
Olivia Lim Li Lan : thanks for your sharing
Sandy Cheah : I finally saw a little bit of light, Hatta, come on