Market was unimpressed by the extraordinary financial result poses by glove companies, bearish on gloves performance in a post Covid-19 world.
The pandemic happened in the world caused extra demand for personal protection equipment (PPE) caused an escalated demand toward glove, that directly increase revenue as well as net profit margin of glove stocks, helping glove company to post extra ordinary result recently.
In the case of Hartalega, the company net profit has been consistent prior the pandemic, hovering at the same level throughout 2018 and 2019.
2020 see a strong surge in revenue, profit as well as net profit margin. This was attribute to the Pandemic. The net profit trend continues to increase during the third quarter of December 2020, where their revenue also increased.
The share price however did not have the same trend as the net profit where the share price dropped 5.89%, starting on the 5th February 2021 with RM13.24 to 9th February 2021 with RM12.46.
This is after a 9% increase from 27th January 2021 with RM12.20 to 2nd February 2021 with RM13.30.