“We are positive on the glove manufacturer’s outlook, driven by sequential improvements in sales volume as customers continue to restock their depleting inventories,” the investment bank said in a statement.

Hartalega shares rose in early trade after the group posted a net profit for the first quarter of 2024 (Q1 2024), marking a recovery from losses in the same period last year.

At 10.10am, Hartalega’s shares increased by 3 sen to RM2.68, with 4.58 million shares traded.

As at 1pm, its share price was up 9 sen or 3.40% at RM2.74, giving the group a market capitalisation of RM9.39 billion.

In Q1 FY2024, the glove maker posted a net profit of RM31.93 million, compared to a net loss of RM52.47 million in the same quarter a year ago.

It also reported a profit after tax of RM32 million for the quarter ended June 30, 2024.

Its profit before tax rose to RM41 million from a loss of RM45 million, with revenue increasing by 33% to RM584 million from RM440 million in the same quarter last year, driven by higher sales, increased prices and lower operating costs due to improved production efficiency.

Meanwhile, RHB Investment Bank Bhd also expects Hartalega to chart growth ahead, propelled by a pick-up in customer order replenishments, increasing acceptance of its cost pass-throughs, and cost normalisation.

The investment bank has maintained a ‘buy’ call on the group with a target price of RM3.55.

Similarly, Maybank Investment Bank Bhd (Maybank IB) has maintained a ‘buy’ call with a target price of RM4.28, expecting Hartalega to report stronger earnings in the second quarter of 2024 (Q2 2024) due to increased sales volume from delayed shipments in the first quarter of 2024 and higher plant utilisation rates.