Hartalega’s 1QFY18 earnings within expectations

KUALA LUMPUR: Hartalega Holdings Bhd’s (Hartalega) first quarter of financial year 2018 (1QFY18) earnings have come in within expectations, with some analysts believing that the group is on track to meet earnings projections.

In a filing on Bursa Malaysia, Hartalega announced that the group’s profit before tax for 1Q ended June 30, 2017 increased by RM47.6 million or 69.9 per cent to RM115.7 million compared with the corresponding quarter of the previous financial year of RM68.1 million.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), Hartalega’s 1QFY18 earnings of RM96.4 million was within its and consensus full-year earnings expectations at 25.1 per cent and 24 per cent respectively.

Hartalega’s 1QFY18 results also came in within AmInvestment Bank Bhd’s (AmInvestment Bank) expectations at 23 per cent of both the research firm’s fullyear forecast and full-year consensus estimates.

Going forward, AmInvestment Bank expected to see capacityled earnings growth.

“Currently, Plant 1, Plant 2 and Plant 3 with 36 production lines have been fully commissioned,” it said.

AmInvestment Bank noted that the first production line of Plant 4 will commence operations in August, while the remaining production lines will be commissioned progressively until it is fully completed in 1Q of current year 2018 (1QCY18).