HARTALEGA Holdings Bhd reported FY25 core profit after tax and minority interests of RM68.6m (+4.4x year-over-year), above our (RM35.8m or 192%) but below consensus’ (RM85.7m or 80%) full-year forecasts. The positive deviation was mainly attributed to higher-than expected revenue, underpinned by more favourable average selling price. That said, we retain our FY26-27 forecasts as we believe 1QFY26 will likely be impacted by the recent Ringgit strength against US dollar since late-Apr. Separately, there is rising uncertainty surrounding the supply-demand equilibrium heading into 2026. Thus, we downgrade Hartalega to Hold from Buy, with a lower target price of RM2.16 (from RM2.66), based on a lower price-to-earnings multiple of 26x on its CY26 earnings per share. — HLIB Research, a unit of Hong Leong Investment Bank Bhd (May 7, 2025)
(Calls by analysts tracked by Bloomberg: 8 Buy, 11 Hold, 2 Sell; Consensus target price: RM2.45)
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