Walau weh 80 % increase???
Written by The Edge FinancialDaily
Tuesday, 10 November 2009 19:30
KUALA LUMPUR: HARTALEGA HOLDINGS BHD [] posted an 80% rise in net profit to RM33.11 million in its second quarter ended Sept 30, 2009 from RM18.37 million a year earlier on the back of expansion in production capacity, higher nitrile sales mix, improvement in production process, lower synthetic and natural latex prices, and favourable exchange rate.
Revenue rose 20.7% to RM134.6 million from RM111.5 million, while basic earnings per share (EPS) rose to 13.66 sen from 7.58 sen. It declared a first interim single tier dividend of five sen per share, totalling about RM12.12 million, which represents about 20.4% of its net profit for the period to Sept 30.
For the six months to Sept 30, net profit rose 90% to RM59.48 million from RM31.26 million a year earlier, while revenue rose 30% to RM259.91 million from RM199.33 million. EPS rose to 24.55 sen from 12.90 sen.
“Our second quarter results reflect our active efforts to increase production capacity, namely via improvements to our production lines. “In addition, we expect two new advanced high capacity production lines from Plant 5 to come on stream before the end of this financial year. This will have an immediate positive impact on our earnings growth,” said Hartalega managing director Kuan Kam Hon said in a statement on Tuesday, Nov 10.
He said furthermore, plant 5 expansion would add another eight advanced high capacity production lines by early 2011, while 10 old lines at plant 1 would be decommissioned and replaced with six high capacity lines.
Kuan said the measures would bring its current annual capacity of 6.2 billion pieces to 10 billion pieces by the second quarter of its 2012 financial year.
“Our commitment to provide investors with positive returns is evident from our profitability track record and dividend payout. Coupled with this fact, we are heartened by investors’ trust in our abilities given the capital appreciation reflected in our current stock price,” Kuan said.
