HLT (0188) HLT GLOBAL BHD : Growth Glove Company Yet to Realised Its Actual Value
HLT Current Price 57
HLT has gone unnoticed by the market that it has a subsidiary making rubber gloves with 1 bil pieces annual capacity which is similar to Rubberex and 25% of Careplus capacity.
HLT Global Berhad (“HLT”) is an investment holding company, whilst its two subsidiaries, HL Advance Technologies (M) Sdn Bhd (“HLA”) is in the business of fabrication of glove-dipping lines (“Glove-Dipping Lines Segment”) and HL Rubber Industries Sdn Bhd (“HLRI”) is in the business of manufacturing and trading of rubber gloves (“Rubber Gloves Segment”). Glove-Dipping Lines Segment HLA is principally involved in the following business activities:- (i) design, fabrication, installation, testing and commissioning of glove-dipping lines (“Sale of New Lines”); (ii) provision of upgrading and modification works for glove-dipping lines (“Upgrade and Modification”); and (iii) supply and trading of associated parts and components (“Supply and Trading”)
Rubber Gloves Segment HLT completed the acquisition of the 55% issued share capital of HLRI on 17 May 2018. HLRI commenced operations in 2003 and since its establishment it has proven track record on delivering quality products and services to its multinational customers. The rubber glove products include, amongst others, natural rubber gloves such as powdered and powder-free latex examination gloves, and synthetic rubber gloves such as powdered and powder-free nitrile examination gloves. Over the recent financial years, our products have been sold within Malaysia, and to other countries such as Taiwan, United States of America, Spain, Singapore, New Zealand, China and United Kingdom. In addition, HLRI is also certified to comply with the ISO 13485 : 2016 and EN ISO 13485 : 2016 requirements on medical devices quality management system for manufacture of non-sterile latex and nitrile examination gloves and ISO 9001 : 2015 requirements on quality management system for manufacture of non-sterile latex and nitrile examination gloves, both accredited by the United Kingdom Accreditation Service.
HLT is in the business of making dipping lines for the gloves industry ..... and they have just signed an exclusive licensing agreement on patented triple dipping glove manufacturing line. HLT also owned a 55% subsidiary HL Rubber Industries with production capacity of 1 billion piece per year. With such capacity at current ASP, we shall be seeing HLT turning in good profit
So, in line with the popularity of glove sector now, this stock had good potential.
For FYE 2019, the rubber gloves segment posted a revenue of RM90.673 million. For current year quarter, the rubber gloves segment delivered revenue of RM19.314 million, 44.03% lower than preceding year quarter. Export sales contributed 92.30% of the total revenue of rubber gloves segment.
The export market mainly consists of Taiwan, Southeast Asia, United States of America and Spain. The rubber gloves segment recorded a gross profit of RM0.173 million with a gross profit margin of 0.90% as compared to a gross profit of RM2.067 million with gross profit margin of 5.99% in the preceding year quarter. For FYE 2019, the rubber gloves segment recorded gross profit of RM1.269 million with gross profit margin of 1.40% as compared to gross profit of RM2.131 million with gross profit margin of 2.71%. The rubber gloves segment recorded loss before taxation of RM1.086 million as compared to a profit before taxation of RM0.741 million in preceding year quarter. For FYE 2019, the rubber gloves segment recorded loss before taxation of RM2.290 million as compared to loss before taxation of RM0.370 million in the FYE 2018
With the increase in ASP it profits will quantum leap.
Assuming maintain of only eps of 1.5 cents per quarter which constitute of 6 cents and pe of just mere 15 would give them a 90 cents value!. Margin of Safety of 57% with conservative 15 pe.
https://klse.i3investor.com/blogs/GrowthInvesting/2020-05-29-story-h1507897151-HLT_Growth_Glove_Company_Yet_to_Realised_Its_Actual_Value.jsp
