HLT (0188) HLT GLOBAL BERHAD THIS STOCK RAISING THE BAR!!!
Date : 10 August 2020
HLT GLOBAL BERHAD
Current Price: RM2.17
Target Price: TP1 = RM2.82 / TP2 = RM4.00
Last target : RM6 (Mac-2021 - Last target depend on COVID-19 situation)
LET'S IT FLY TOMORROW FOR LIMIT UP!
TODAY NEWS : HLT Global Bhd aims to raise RM236.14 million to RM324.68 million through a private placement of 20% of its issued shares to build a new rubber glove manufacturing plant.
The private placement will add anywhere between 105.42 million to 144.95 million new shares. The indicative price per placement share is 2.24%, a 9.69% discount to its five-day volume weighted average price of RM2.48. About RM205 million to RM300 million of the proceeds will be used to partly finance land acquisitions, as well as factory construction and glove dipping lines for the plant. It expects production to increase to between 4.1 billion to 5.3 billion pieces, from one billion pieces a year at present.
HLT - Today closed at RM2.17 support level. With strong selling pressure for two days continue. The questions is will it bounce and fly to Kim TP RM4. Possible!!! The answer is YES. Today, it announced with private placement and it is a good one. It shown the company is putting the effort to continue growth the company. From 1bil piece of gloves to 5.3max pieces upon completion.
Even a private placement may cause the dilution of share price. But HLT catched a good timing to issue this PP. It will create more attention in the market to push the share price higher due to the expansion is really good for company growth.
3 points for cushion it to fly tomorrow are :-
1. Private Placement at RM2.24
2. Private Placement to increase production line. From 1bil existing to 5.3 bill max pieces
3. Most of the fund use for business expansion and not to use for other purpose. 90% use for business expansion
4. No bad debt and just a small borrowing, will make it surge above my target soon.
WHAT KIM SAY?
"I have no doubt after I went through more details on this vessel engine. I am captain for KGT, I did called my crew to onboard, so "The captain is last to leave a sinking ship". Lets see tomorrow another round to LIMIT UP!"
"Do you believe it? - Kim
WHAT THEY DO?
HLT Global Berhad through its sole subsidiary, HL Advance Technologies (M) Sdn Bhd (HL Advance), is principally involved in the design, fabrication, installation, testing and commissioning of glove-dipping lines, the provision of upgrading and modification works for glove-dipping lines, and the supply and trading of associated parts and components.
The glove-dipping lines produced by them can be designed to cater for the manufacturing of natural and/or synthetic rubber gloves.
Their customers are rubber glove manufacturing companies involved in the production of natural and/or synthetic rubber gloves used across various industries including medical, industrial and food processing industries.
Since their commencement of business operations in 2009, their products have been sold within Malaysia and to other countries such as Thailand, Indonesia, Vietnam, China, India and Saudi Arabia.
KIM'S PERSONAL VIEW :-
HLT good business prospect and they are willing to grow rapidly due to COVID-19 pandemic within a short-term.
HLT exporter countries much more potentiality high sales.
HLT financial going to be more psositive and grow more than 2 conservative quaters.
HLT Eps next 1 and 2 quaters will going up easily and can make more profit in the current year than last year.
HLT demands order from their regular customers sustainable and keep increasing.
Design, fabrication, installation, testing and commissioning of glove-dipping lines
They possess the technical knowledge and experience in designing, fabricating, installing, testing and commissioning of glove-dipping lines that meet our customers' requirements on production efficiency and effectiveness. Through customising on, inter-alia, the overall speed and length of conveyor chain, design of dipping tank and oven, and heating system, their glove-dipping lines are designed and manufactured with the aim of:- attaining greater production efficiency through optimal utilisation of resources (such as energy costs and compounded solution utilised), increased automation and production output per hour, thereby achieving the desired production capacity of their customers; and
manufacturing quality end-products, i.e., rubber gloves, that conform to our customers' specifications, in terms of end-product attributes, such as the Acceptable Quality Level and physical properties
2. Provision of upgrading and modification works for glove-dipping lines
In addition to the fabrication and installation of new glove-dipping lines, they also provide upgrading and modification works for their customers, particularly on the upgrading of their existing glove-dipping lines in terms of production output per hour, or modification of the relevant components of their existing glove-dipping lines for the purpose of manufacturing different types and quality of rubber glove. As opposed to a complete glove-dipping line, upgrading and modification works require their supply of selected components which form part of the glove-dipping lines.
3. Supply and trading of the associated parts and components
They also supply the associated parts and components of glove-dipping line, such as conveyor chain, bearings, former holders, beading brushes and washing brushes, to their customers, as and when required. These parts and components, which are sourced from third party manufacturers, are typically used as replacement parts due to general wear and tear.
WHY I PICKED THIS HLT AS MY DARLING NOW?
1. HLT Global Bhd’s which specialises in setting up production lines at rubber glove manufacturing plants.
2. The company also holds a 55% stake in HL Rubber Industries Sdn Bhd which manufactures rubber gloves.
3. HLT Global has also jumped onto the pandemic bandwagon. In April, HLT announced that it was venturing into distributing Covid-19 test kits.
4. HL Advance Technologies (M) Sdn Bhd had entered into a distributor agreement with Accobiotech Sdn Bhd for the distribution of Covid-19 rapid test kits around the world for an initial period of one year from April 20, 2020 to April 20, 2021.
HLT - Comparing the result from Q4'19 vs Q1'20. Attribute to the impairment loss from customer and high operating cost incurred on Q4'19 that caused HLT suffer a net loss of RM2.2mil. Otherwise, HLT may easily generate a consistent Net profit on every quarter from Q2'19 with the effort from the management to monitor and improve the cost control even the revenue is dropping from the passed three quarters. The future prospects of this company is very good as the management is positively looking for better results from the coming quarter due to high demand.
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