{
  "id": 19754126,
  "title": "Hartalega faces Q3 earnings pressure on softer ASPs, higher costs",
  "url": "https://urgent.news/2026/11/13/hartalega-faces-q3-earnings-pressure-on-softer-asps-higher-costs",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-13T03:27:05.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/11/1576701/hartalega-faces-q3-earnings-pressure-softer-asps-higher-costs"
  },
  "original_language": "en",
  "account": "Hartalega Holdings Bhd anticipates weaker third-quarter earnings for the financial year 2027, attributed to the normalization of average selling prices (ASPs) and a delay in passing on higher raw material costs to customers. Analysts CIMB Securities Sdn Bhd predict near-term profitability to be under pressure due to the normalization of ASPs and delays in passing on increased raw material costs to customers, potentially squeezing margins. Despite this, Hartalega remains focused on maintaining cost discipline and accelerating automation to mitigate the impact of labour cost inflation. In Q2 FY27, the company reported a core net profit of RM28 million, marking its first-half core net profit at RM99 million, which exceeded expectations due to higher-than-anticipated ASPs. However, CIMB Securities has lowered its FY28 and FY29 core net profit forecasts by two and three percent respectively, considering the impact of higher minimum wages. Hong Leong Investment Bank Bhd (HLIB) expects a 10% quarter-on-quarter rise in sales volume in Q3 FY27, following subdued customer purchases in the previous two quarters. HLIB increased the ASPs of generic medical nitrile gloves from September to December but does not anticipate these price adjustments to significantly boost profit margins as ASPs in Q3 FY27 are expected to be weaker compared to Q2 FY26, which were elevated due to delayed shipments carrying peak May pricing.",
  "summary": "KUALA LUMPUR: Analysts expect Hartalega Holdings Bhd to report weaker quarter-on-quarter earnings in the third quarter of financial year 2027 (Q3 FY27), weighed down by the normalisation of average selling prices (ASPs) and a lag in passing higher raw material costs on to customers.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}