KUALA LUMPUR, Hartalega Holdings Bhd shares rose in early trade after the group posted a net profit for the first quarter (1Q) of 2024, marking a recovery from losses in the same period last year. At 10.10 am, Hartalega's shares increased by three sen to RM2.68, with 4.58 million shares traded. The group reported a profit after tax of RM32 million for the quarter ended June 30, 2024. Its profit before tax rose to RM41 million from a loss of RM45 million, with revenue increasing by 33 per cent to RM584 million from RM440 million in the same quarter last year, driven by higher sales, increased prices and lower operating costs due to improved production efficiency. Public Bank Investment Bank Bhd upgraded its call on Hartalega from 'Neutral' to 'Outperform' with a higher target price of RM3.16. "We are positive on Hartalega's outlook, driven by sequential improvements in sales volume as customers continue to restock their depleting inventories," the bank said in a note today. RHB Investment Bank Bhd also expects Hartalega to chart growth ahead, propelled by a pick-up in customer order replenishments, increasing acceptance of its cost pass-throughs, and cost normalisation. The bank has maintained a 'Buy' call on the group with a target price of RM3.55. Similarly, Maybank Investment Bank Bhd has maintained a 'Buy' call with a target price of RM4.28, expecting Hartalega to report stronger earnings in the second quarter of 2025 due to increased sales volume from delayed shipments in the first quarter of 2025 and higher plant utilisation rates. Source: BERNAMA News Agency