12-Month Target Price for Hartalega: RM5.20

1. In January 2025, the U.S. will implement a 50% tariff on Chinese medical gloves, with a potential increase to 100% in 2026. Under a Donald Trump administration, this tariff could be revised to 100% as early as 2025, which would benefit Hartalega as a competitive advantage.

2. Hartalega has shown a consistent increase in sales volume on a quarter-over-quarter basis.

3. The weakening Malaysian Ringgit is advantageous for Hartalega, enhancing its export competitiveness.

4. Under potential Donald Trump policies in the oil and gas sector, commodity prices are likely to decline. Lower oil prices would reduce the cost of butadiene, a key raw material for Hartalega, as well as energy costs from natural gas.

5. Hartalega’s strong management and leadership, combined with a commitment to innovation and R&D, position it as a market leader in the nitrile glove segment.

6. Hartalega holds a strong net cash position of RM1.3 billion.

7. The company has resumed dividend payments, further enhancing its appeal to investors.

8. The U.S. is expected to impose tariffs on Chinese glove producers, even if they relocate manufacturing operations to other countries, providing a favorable competitive landscape for Hartalega.

9. Demand growth for nitrile gloves is expected to outpace supply in Q1 2025.

10. Hartalega is recognized for its highly efficient production processes and lowest manufacturing costs in the industry.

https://klse.i3investor.com/web/stock/overview/5168

Maybank Investment Bank (Maybank IB) has maintained its 'buy' rating for Hartalega Holdings Bhd (KL:HARTA) at RM3.19, with an unchanged target price (TP) of RM4.50, saying the average selling price (ASP) outlook is improving for the glove maker, as it fully passes on higher raw material costs to customers.