Hartalega Holdings +0.9%; OSK Keeps At Buy

Hartalega Holdings Bhd (5168.KU) is up 0.9% at MYR5.75; this after the glovemaker says its fiscal 4Q net profit rose 13% on-year to MYR52.4 million, while revenue grew 18% to MYR192.5 million due to expansion in production capacity, increased demand, and improvement in production processes. "We expect nitrile glove demand will continue to grow by 30% for calendar year 2011 and our group is well-positioned to take advantage of such demand growth with the completion of our plant five production lines, which has started to contribute toward increasing our output capacity," the company says. OSK Research says, the FY11 results were within expectations despite the company going through a tough operating environment following the rise in latex prices, coupled with steepening competition in the nitrile glove segment. The house maintains its Buy rating on the stock with a target of MYR7.40