HARTA (Article 2)

Why I like HARTA

Glove industry is one of the recession proof industries but HARTA has been the most efficient glove producer among the glove producer in Malaysia. It has RM29.7 million net cash currently. HARTA has developed its own machinery and technologies for its high-capacity production lines.

Its production lines are highly automated and can produce up to 30,000 pieces per hour. This is the highest capacity in the industry. The group had also developed the first mechanical glove striping system in the industry. HARTA net profit margin is about 19%, far higher than the average of 6% in the industry.

The company own and run by an experience and capable person assisted by his two sons, one can consider as a family business. Both of his sons are directly involved in the business and could be a good successor in future.


HARTA Prospects

The glove maker, which has four plants currently, produces up to 6.2 billion gloves annually and its output is slated to expand to 10.5 billion pieces by 2011 when its fifth plant is ready. Glove producer remains one of the country’s best-performing manufacturing sub-sectors as demand for gloves is still increasing in the healthcare industry, in spite of the global recession. HARTA which produce nitrile and rubber gloves in the ratio of 80:20. Demand for the nitrile glove is increasing, not only in the health care industry but also in the foods sector. It has the technology, peoples and market, thus, I believe in the near future, HARTA will be a star as it net profit and dividend payout keep increasing. In fact, investor started to realize that HARTA has the potential with its share price increase more than 100% this year alone. Of course, partly is due to the worsening of A(H1N1) flu.


Dividend record

Year Gross Dividend
2009 0.08¢
2008 0.04¢

The company may want to have a minimum of 10¢ dividend payout annually.


ATTN: THIS DISSCUSION IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

Simulation Model Portfolio 4

The current global economy seems to reach another turning point from bad to “start to boom”, perhaps another cycle start to roll again, the game is on! Money seems to flow into the equity market again and this push the word market up and up again. Cheer….

In four months time, my portfolio recorded a total gain of RM28150, which is a very good return! But beer in mind that buy the right share in the right time is the first priority, is not always happen. The most successful counter will be Harta, which has appreciated almost 92% in 4 months time. As mentioned in the last report, due to the worsening of H1N1 flu, glove demand increased globally and this has created interest over the counter.

I will keep all the counter in my portfolio as I believe this is just the beginning of another bull cycle, which I believe there will be further upside in future. The latest US unemployment drop a little bit to 9.4% last Friday shows that the US economy is improving, but slow.

Base on the KLCI historical chart, composite index has rebounded about 400 points from the low year to date to almost 1200 points.