He Tejia reaped profits for 4 consecutive quarters and then paid dividends after a lapse of 2 years

Due to a slight increase in the volume and price of gloves, Hetejia continued to turn a profit in the first quarter of fiscal year 2025, and recorded a net profit of RM31.92 million6,000, compared to a loss of RM52.46 million9,000 over the same period last year.

The company reported to the Malaysia Stock Exchange that revenue for the first quarter ending June 1 surged 32.68% year on year to 0.5 billion 83.83 million9,000.

The company pointed out that there was a significant improvement in revenue during the quarter, mainly an increase in glove sales and a slight increase in the average sales price of gloves. However, due to ongoing global freight restrictions, shipping delays also partially affected its revenue.

In addition to being driven by revenue growth, in terms of net profit, operating costs were reduced and profitability improved due to increased production efficiency and capacity utilization.

The last time the company paid dividends was the final dividend for fiscal year 2022, which was distributed 3.5 cents per share in September 2022.

Meanwhile, Hetejia announced a final dividend of 0.35 cents for the 2024 fiscal year, and will seek approval at the shareholders' meeting on the 6th of next month. Once approved, the distribution will be on October 8.

Despite many challenges, demand for rubber gloves showed early signs of improvement as pandemic inventories declined and sales orders gradually resumed.

Guan Minliang, CEO of the company, said that the gradual recovery in demand is encouraging. This is due to strategic capacity adjustments and effective inventory management by major players in the industry, and their operational efficiency enhancement measures have continued to achieve positive results.

However, global shipping restrictions still had an impact on the company's shipments, but he also understood that under the new business normal, it was necessary to be more flexible in dealing with market uncertainty.

“Therefore, our five-year strategic plan focuses on optimizing operations and cost efficiency, increasing automation, and maintaining a leading position in social responsibility and sustainable development through robust environmental, social and regulatory (ESG) initiatives.”

Looking ahead, he believes the demand environment will become more favorable, so they will continue to strategically expand production capacity while keeping a close eye on market developments.

“Despite ongoing pressure from peripheral markets, we believe that as global healthcare demand grows and hygiene awareness increases, demand for gloves will continue to rise and surpass pre-pandemic levels, and Hetejia is also expected to take an advantage in the upcoming market recovery.”

When the market closed, Hetejia closed at RM2.65, up 17 cents or 6.9%, and the turnover reached RM26.53 million.