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.


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