03-12-2014, 11:18 AM
Hartalega is a company to watch for, for those have vested interest on nitrile glove company. The company has the lowest production cost, base on my best knowledge. If the company goes with price war, all others will be affected, except those are able to differentiate its products and services...
(not vested)
Hartalega should be more aggressive on its pricing
Hartalega Holdings Bhd
(Dec 2, RM6.75)
Upgrade to “buy” with a target price (TP) of RM 8.45. The first two new-generation complex (NGC) production lines will come online this month. Backed by incoming capacity (about nine billion pieces per annum) and the best operating structure in the sector — break even utilisation of only 42% — we expect Hartalega to be more aggressive on its pricing, once it has commissioned sufficient capacity at the NGC plants. It would help Hartalega to: i) grab market share from competitors; ii) maximise utilisation and profits and iii) derail competitors’ expansion plans by depressing future internal rate of return (IRRs).
...
http://www.theedgemarkets.com/en/node/172868
(not vested)
Hartalega should be more aggressive on its pricing
Hartalega Holdings Bhd
(Dec 2, RM6.75)
Upgrade to “buy” with a target price (TP) of RM 8.45. The first two new-generation complex (NGC) production lines will come online this month. Backed by incoming capacity (about nine billion pieces per annum) and the best operating structure in the sector — break even utilisation of only 42% — we expect Hartalega to be more aggressive on its pricing, once it has commissioned sufficient capacity at the NGC plants. It would help Hartalega to: i) grab market share from competitors; ii) maximise utilisation and profits and iii) derail competitors’ expansion plans by depressing future internal rate of return (IRRs).
...
http://www.theedgemarkets.com/en/node/172868
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