PETALING JAYA: Analysts remain cautious on the prospects of Hartalega Holdings Bhd
, with the group expecting margins to come under pressure in the current quarter as average selling prices (ASPs) retreat from a temporary spike.
This comes as high-cost raw material inventories continue to weigh on profitability, despite plans to restart idled production capacity and raise prices later in the financial year.
The glove maker said sales volumes are likely to remain broadly flat in the second quarter of the financial year ending March 2027 (2Q27), with ASPs correcting more quickly than input costs.
Industry-wide price increases of about US$1.50 to US$2 per 1,000 gloves are expected in 3Q to offset higher nitrile and natural gas costs, although implementation could prove challenging amid persistent oversupply and intense competition from regional manufacturers.
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