Financial performance comparison of Hartalega Holdings Bhd PDF

1

Table of Contents
PART A......................................................................................................................................4
1.1. Introduction.................................................................................................................4
1.2. Financial performance comparison of Hartalega Holdings Bhd and Supermax
corporation Bhd......................................................................................................................4
1.2.1. Hartalega Holdings Bhd.......................................................................................4
1.2.1.1. Current ratio..................................................................................................4
1.2.1.2. Equity ratio...................................................................................................5
1.2.1.3. Gross profit margin.......................................................................................5
1.2.1.4. Efficiency ratio.............................................................................................6
1.2.2. Supermax corporation Bhd..................................................................................6
1.2.2.1. Current ratio..................................................................................................6
1.2.2.2. Equity ratio...................................................................................................7
1.2.2.3. Gross profit margin.......................................................................................7
1.2.2.4. Efficiency ratio.............................................................................................7
1.3. Dividend policy...........................................................................................................8
1.3.1. Hartalega..............................................................................................................8
1.3.2. Supermax..............................................................................................................9
1.4. Corporate governance..................................................................................................9
1.4.1. Supermax..............................................................................................................9
1.4.2. Hartalega............................................................................................................10
Part B........................................................................................................................................10
i) Benefits and major drawback....................................................................................10
ii) What will be Ibrahim’s minimum profit if he buys two puts at the indicated price?
10
iii) What if the stock drops to AED 11 per share?......................................................11
b) Differing forms of market efficiency...........................................................................12
2

i) Weak form.................................................................................................................13
ii) Semi-strong form...................................................................................................13
iii) Strong form............................................................................................................13
References................................................................................................................................14
3

PART A
1.1. Introduction
According to Lee (2021) stated that the shares of top globe dropped by 17.7% this year while
two of its competitors Hartalega and supermax dropped between 18% and 30%. She added in
comparison with the FTSE Bursa Malaysia KLCI Index it fell by 0.9% during the same time,
the company however stated due to covid-19 its stocks had a significant jump last year due to
the increased demand for medical gloves. One of the factors withholding investor’s
confidence in stocks is the expected fall in the sale price of gloves due to lower demand as a
lot of individuals are being vaccinated. Lee (2021) also mentioned that the jump in the
average selling price of gloves isn’t sustainable as she added the forecast of a 30% to 35%
fall in prices in the year 2022 however the prices will likely remain above the pre-pandemic
levels for the next 2 to 3 years which is due to the demand for gloves expected to remain
elevated in the next coming years.
1.2. Financial performance comparison of Hartalega Holdings Bhd and
Supermax corporation Bhd
According to Hartalega annual report (2020) the revenues in the fiscal year 2020 was RM
2924.3 million from RM 2827.2 million in the fiscal year 2019 in comparison with Supermax
annual report (2020) was RM 2131.8 million in the fiscal year 2020 compared to RM 1538.2
million in the fiscal year 2019.
1.2.1. Hartalega Holdings Bhd
1.2.1.1. Current ratio
This ratio measures the firm’s ability to pay off its current liabilities within one year with its
total current assets (Purnomo, 2018).
Formula: Current ratio: current assets/ current liabilities
Workings:
2020: 1,088,521,433/ 407,039,182 = 2.67
2019: 897,441,784/ 411,888,771 = 2.18
2018: 866,359,157/ 413,552,543 = 2.09
2017: 691,713,291/ 363,016,270 = 1.91
4