Broker Name: Maybank Investment Bank Berhad
Date of Report: October 16, 2025

Excerpt from Maybank Investment Bank Berhad report.

Report Summary

• Hartalega (HART MK) faces ongoing challenges from increased competition, particularly from expanding Chinese glove manufacturers targeting Southeast Asia and the US markets.
• The company is prioritizing operational efficiency, cost control, and automation, having hibernated two plants to focus on upgrades, which raised utilization rates to 100% but reduced capacity.
• HART is exploring growth through M&A in the healthcare sector and expanding its own Gloveon brand, while managing forex risk via hedging.
• Despite competitive pricing and industry oversupply, Malaysia could still capture some demand as buyers diversify suppliers; the next six months are critical as new Chinese capacity comes online.
• Financial forecasts remain unchanged with a target price of MYR1.35; the stock is upgraded to HOLD due to recent share price weakness offering a 10% upside to target price.
• Key risks include prolonged price wars, further aggressive expansion by Chinese competitors, and potential currency headwinds.

Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website: www.maybank.com/investment-banking