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Health Technology

Hartalega Holdings Bhd.

Company Background

Hartalega is the world's largest producer of synthetic rubber gloves, used mainly in the healthcare industry. Besides its own brand, the company is also an original equipment manufacturer that makes high-quality surgical and laboratory gloves.

The company was founded in 1988 by Kuan Kam Hon, who is now executive chairman. He is an entrepreneur who built his fortune as a house builder, and later by dealing in woven labels and badges. Annual production capacity of the company is over 13 billion gloves, which was nearly 30% of Malaysia's exports in 2013. Its products are exported to about 40 countries. Sales in the U.S. make up about half of the company's revenue, followed by Europe and Asia.

Like Top Glove, its rival, which is the leader in natural rubber gloves, Hartalega was able to grow rapidly, especially in the mid-2000s, when hospitals in developed economies such as the U.S. and Europe began to switch from latex to nitrile gloves. Nitrile gloves cause fewer problems with skin allergies. Ownership in Hartalega is controlled by the Kuan family, which was led by second-generation Managing Director Kuan Mun Leong.

Business Summary

Hartalega Holdings Bhd. operates as an investment holding company. The firm engages in the manufacture and sale of latex gloves. It operates in North America, Europe, Asia, Australia, Malaysia, South America, Middle East and Russia. The company was founded by Kam Hon Kuan on July 24, 2006 and is headquartered in Kuala Lumpur, Malaysia.

Financial Highlights

Mar 2020 MYRUSD
Revenue2,924.31M702.19M
Gross Profit741.53M178.05M
Operating income593.12M142.42M
Income before tax555.43M133.37M
Net income433.61M104.12M
EBITDA718.44M172.51M
Diluted EPS0.120.03
Dividends Per Share0.070.01
Total Assets3,388.78M784.44M
Total liabilities845.66M195.75M
Total equity2,539.79M587.91M
Operating cash flow650.80M156.27M
Currency in MYRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 1,498.33M 1,821.87M 2,405.63M 2,827.21M 2,924.31M
Gross Profit 401.69M 490.57M 614.76M 708.20M 741.53M
Operating income 315.92M 386.63M 458.94M 573.99M 593.12M
Income before tax 316.87M 348.97M 526.42M 550.82M 555.43M
Net income 257.42M 283.00M 438.91M 455.17M 433.61M
EBITDA 386.56M 457.29M 547.36M 677.97M 718.44M
Diluted EPS 0.07 0.08 0.13 0.13 0.12
Dividends Per Share 0.04 0.04 0.07 0.08 0.07
Total Assets 1,998.52M 2,334.98M 2,687.19M 3,052.64M 3,388.78M
Total liabilities 494.49M 650.19M 689.79M 793.41M 845.66M
Total equity 1,501.94M 1,682.16M 1,994.22M 2,256.42M 2,539.79M
Operating cash flow 240.76M 337.11M 399.10M 620.39M 650.80M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 369.99M 433.24M 576.81M 693.53M 702.19M
Gross Profit 99.19M 116.65M 147.40M 173.72M 178.05M
Operating income 78.01M 91.94M 110.04M 140.80M 142.42M
Income before tax 78.24M 82.98M 126.22M 135.12M 133.37M
Net income 63.56M 67.29M 105.24M 111.65M 104.12M
EBITDA 95.45M 108.74M 131.24M 166.31M 172.51M
Diluted EPS 0.01 0.02 0.03 0.03 0.03
Dividends Per Share 0.00 0.01 0.01 0.02 0.01
Total Assets 512.24M 527.62M 694.72M 747.73M 784.44M
Total liabilities 126.74M 146.92M 178.33M 194.34M 195.75M
Total equity 384.96M 380.10M 515.56M 552.70M 587.91M
Operating cash flow 59.45M 80.16M 95.69M 152.18M 156.27M

Valuation Measures

Mar 2020
PER53.41
ROA13.46%
ROE18.08%
Operating margin20.28%
Profit margin14.82%

Key executives

  • Managing Director & Executive Director: Mun Leong Kuan
  • Chief Operating Officer: Eu Jin Kuan
  • Chief Financial Officer: Kean Wooi Loh
  • General Manager-Information Technology: Wah Choon Leang
  • Deputy General Manager-Research & Development: Mei Ling Cheah

Shareholders

  • Hartalega Industries Sdn. Bhd. (47.7%)
  • Kumpulan Wang Persaraan (2.5%)
  • Employees Provident Fund (2.0%)
  • KUAN KAM PENG (1.7%)
  • Public Mutual Bhd. (1.7%)
  • The Vanguard Group, Inc. (1.5%)
  • Great Eastern Life Assurance Co. Ltd. (1.1%)
  • Medline Industries, Inc. (0.8%)
  • BlackRock Fund Advisors (0.8%)
  • GIC Pte Ltd. (Investment Management) (0.8%)

Contact Details

  • Website:http://hartalega.com.my
  • Address: C-G-9, Jalan Dataran SD1, Dataran SD PJU 9, Kuala Lumpur, 52200, Malaysia
  • Phone: +60.3.6277.1733

Related Companies

  • Hartalega NGC Sdn. Bhd.
  • Hartalega Sdn. Bhd.

Competitors

  • Sri Trang Agro-Industry Public Co. Ltd.
Last Updated on 10 Aug, 2020

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