GLOVE producer Hartalega Holdings Berhad finds itself with limited options when it comes to mitigating the escalation in raw material prices . A price hike is unlikely , given the significant price gap between Hartalega and its rivals . Nitrile butadiene raw material prices have increased since September as feedstock prices have increased . Hong Leong Investment Bank ( HLIB ) Research said that any attempt to raise glove prices could be met by buyers ’ resistance as the market struggles with excess supplies .
“ In our opinion , attempts to raise prices would negatively impact sales volume , as buyers have the flexibility
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to shift to more cost-efficient suppliers . This was evident in 1QFY24 , whereby Hartalega ’ s sales volume plummeted by 26 per cent QoQ when it passed on the higher natural gas costs to the buyers ,” added the research firm .
Hartalega ’ s October deliveries were priced at US $ 18 per thousand pieces compared to US $ 20 per thousand pieces in July , which boosted the utilisation rate marginally from 40 per cent to 45 per cent compared to 41 per cent in 1QFY24 .
On the other hand , Chinese glove makers maintained their prices at around US $ 15 per thousand pieces .
While Hartalega has been leading Chinese glove makers in terms of
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Glove manfacturing plant .
product quality , HILB said that other Chinese glove makers have been making recent improvements to catch up on the quality gap .
“ We believe glove buyers would be more inclined to shift back to Malaysian suppliers only when the pricing gap narrows to US $ 1 per thousand pieces ( current gap : c . US $ 3 per thousand pieces ). For Hartalega to recapture market share , it would necessitate a reduction in ASP to c .
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US $ 16 per thousand pieces to see a meaningful shift in orders back to local manufacturers ,” said HLIB .
The research firm does not expect Hartalega to engage in a price war to increase its sales volume . HLIB maintained its “ sell ” call on Hartalega with a target price of RM1.15 .
“ Operations should continue to bleed in the near term , and we expect Hartalega to only return to profitability in FY25 .”
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Spreading cleft awareness through art PRINCE COURT Medical Centre recently collaborated with the Cleft Lip & Palate Association Malaysia ( CLAPAM ) and Art Market Malaysia to host a Charity Art Exhibition in honour of Cleft Awareness Month . This initiative was
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to raise awareness and donations for cleft patients . The exhibition raised RM14,450 , with 10 per cent of the proceeds donated to CLAPAM .
The exhibition showcased a diverse collection of artworks , including pieces by local artists , disabled artists and children . Prices ranged from RM100 to RM8,000 , with art to suite every budget and preference .
“ At Prince Court , we understand the profound impact cleft can have on someone ’ s life . For those born with cleft
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lip and palate conditions , that journey to a beautiful and confident smile is very challenging , but it ’ s a journey we ’ re privileged to be a part of ,” said Prince Court Consultant Orthodontist Col Datin Dr Mumtaj Nisah Abd Rahim .
Attendees also had the opportunity to learn more about cleft awareness and support . Both Art Market Malaysia and CLAPAM set up booths in the lobby of Prince Court for attendees to procure the necessary information and resources about cleft lip and palate
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conditions .
The exhibition also offered engaging activities for attendees . Art initiates could join a batik colouring session for RM30 or an acrylic painting class for RM55 .
This collaboration was aimed to raise awareness about cleft lip and palate conditions , whilst also providing valuable support for cleft patients . The organisers encourage the community to contribute to this worthy cause during Cleft Awareness Month .
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