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Warren Buffet’s 4 financial ratios he checks before every investment. The thresholds are:
ROE >15%, Debt/Equity <0.5, Current Ratio >1.5, Operating or Profit Margin >15%.
Comparing Hartalega and Intco
Sources and dates used:
Hartalega (HARTA, KLSE:5168): Latest quarterly report for FPE 31 Dec 2025 (Q3 FY2026), released 10 Feb 2026. I pulled revenue, operating profit, net profit, equity, debt, current assets & liabilities directly from the QR. [docs.publicnow.com],[marketscreener.com]
INTCO Medical (SHE:300677): Latest TTM/ratio set as of Feb 2026 (ROE, D/E, current ratio) from S&P/StockAnalysis; margins corroborated with Yahoo Finance TTM line items. (INTCO’s next formal 2025 results are guided for Apr 24, 2026, so TTM is the freshest consolidated view now.) [stockanalysis.com],[finance.yahoo.com],[simplywall.st]
Computation:
Hartalega (QR for FPE 31 Dec 2025, released 10 Feb 2026)
Interpretation: Hartalega’s balance sheet is extremely strong (nearly net-cash, very high liquidity), but current profitability is thin, so it fails the ROE and margin hurdles for now. [docs.publicnow.com]
INTCO Medical (latest TTM/ratios as of Feb 2026; quarterly detail pending next filing):
ROE: 9.84% TTM (S&P/StockAnalysis). [stockanalysis.com]
Debt/Equity: 0.96× (S&P/StockAnalysis). [stockanalysis.com]
Current ratio: 1.34× (S&P/StockAnalysis). [stockanalysis.com]
Operating margin (TTM): Operating income 1,089,361 / Revenue 9,849,586 ≈ 11.1% (Yahoo Finance). [finance.yahoo.com]
Net margin (TTM): Net income 1,702,420 / Revenue 9,849,586 ≈ 17.3% (Yahoo Finance). [finance.yahoo.com]
Interpretation: INTCO shows healthy net margin TTM but carries meaningful leverage and a sub‑1.5 current ratio, so it does not clear the D/E and liquidity bars. [stockanalysis.com]
In conclusion, bottom line vs the thresholds between Hartalega and Intco,
Hartalega:
Pass → Debt/Equity, Current Ratio
Fail → ROE 15%, Operating/Net margin 15% (at Q3 run‑rate) [docs.publicnow.com]
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I will follow Harta management steer , they are a decent team with high integrity . Those disagree can agree to disagree I have no problem. May the market forces be with you, cheers !
Since 27 Jan 26, Harta has executed multiple open market share buybacks:
27 Jan : 1.6m shares at 0.885 - 0.89
28Jan: 1.35m shares at 0.93 - 0.945
29 Jan: additional buyback similar quantum
03 Feb: 0.33 shares at 0.895 -0.9
All shares were retained as treasury shares, not immediately cancelled
Cumulative treasury shares are now 17.6m shares (0.51%) of issued capital
This is deliberate, repeated intervention
The real signals:
Singal 1: Management believes the share price is undervalued. That tells you, at this level of price 0.88 to 0.95 using cash to buy own shares gives better return than alternative uses
This is stronger than verbal guidance and stronger than analyst reports
Signal 2: cash position is still strong
Harta can only legally fund buybacks from :
Retained earnings
Internal cash flow
The fact they are buying repeatedly implies:
No near term liquidity stress
No immediate capital call risk
This aligns with their net cash balance sheet profile despite weak sector conditions
Signal 3: dowmside protection is being actively defended
This is why the stock has somewhat stabilised despite sell calls from some brokers
What should you do as a Harta investor:
• if you are a long term investor
This behaviour is supportive not alarming
You should:
View RM0.88 to 0.95 as a management defended zone
Expect slow accumulation not V-shaped recovery
Be patient for 2026-2027 earnings normalisation
Bottom line
Harta is telling you with cash, not words:
This price is too low for our long term value and we are willing to buy our own shares repeatedly to prove it