KUALA LUMPUR (Aug 28): HLT Global Bhd’s net profit rose 65.73% for the quarter ended June 30, 2020 (2QFY20) to RM4.86 million from RM2.93 million a year ago, buoyed by a swing to profit for its rubber glove manufacturing business.
Earnings per share rose to 0.95 sen from 0.57 sen, the group’s bourse filing showed.
HLT, whose core business is making dipping lines for glove manufacturers, saw this business segment record a higher pre-tax profit of RM4.02 million compared with RM3.66 million in 2QFY19.
Its rubber glove business, meanwhile, made a pre-tax profit of RM3.23 million, compared with a loss of RM1.19 million in 2QFY19.
Quarterly revenue rose at a slower pace of 14.51% to RM50.86 million from RM44.42 million previously, on better rubber glove segment contribution.
Notably, better margin was witnessed in both segments, the group said.
For the six-month period, HLT Global’s net profit rose 77.27% to RM7.47 million or 1.46 sen per share, from RM4.21 million or 0.82 sen per share a year earlier.
This is despite revenue rising by just 0.96% to RM76.99 million from RM76.27 million, as the dipping line segment contribution was weaker year-on-year.
Touching on the rubber glove segment, HLT said 90% of its products are sold overseas mainly in Taiwan, the US, China, Japan and Italy.
As for the dipping-lines segment, HLT Global said it has four orders of new lines progressing, three of which are local orders.
“The group will continue to execute its business strategies and has put in place a series of future plans to strengthen its position in the glove-dipping line industry in Malaysia as well as the overseas market,” it said.
Shares of HLT Global slid 2 sen or 1.16% to close at RM1.71, valuing the group at RM977.48 million. Year to date, the counter has shot up 850%.
http://www.theedgemarkets.com/article/hlt-globals-2q-profit-65-glovemaking-business-turns-profitable
