“We are expecting a 15% earnings decline in 2Q due to a fall in earnings of glove companies but we expect corporate earnings to be robust and grow by 2.1% in 2H22," said MIDF Research head Imran Yassin Md Yusof.
“We are expecting a 15% earnings decline in 2Q due to a fall in earnings of glove companies but we expect corporate earnings to be robust and grow by 2.1% in 2H22. True to expectations, Hartalega Holdings Bhd yesterday posted a 96% year-on-year drop in earnings to RM88.3mil or 2.58 sen earnings per share for its 1Q ended June 30 on lower sales and loss of pricing power.
Current investor sentiment is driven by the overarching theme of economic recovery in 2022, Imran said, adding that despite pockets of weakness, the recovery momentum has not stalled as evident by recent data. MIER, however, believes that sustained consumer spending will support Malaysia’s real GDP to grow at 5% to 6% in 2023.