Hartalega is set to announce 2QFY17 results on 8th November. We project core net profit to be sequentially stronger within the range of RM70m and RM75m, bolstered by

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Company Update � Hartalega (HOLD, maintain) - Recovery in sight Hartalega is set to announce 2QFY17 results on 8th November. We project core net profit to be sequentially stronger within the range of RM70m and RM75m, bolstered by volume sales recovery and margin expansion on higher utilisation rates. U$ ASP could trend higher, but mostly to compensate for pricier raw material costs. We expect competition to moderate on disciplined capacity expansion to allow for better demand absorption. Hartalega valuations are lofty due to superior pricing power, but margins are increasingly squeezed on product commoditisation. Maintain HOLD.

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Economy � Trade - Exports decline by 3% yoy in September

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