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OSK Research retained its Overweight rating on the rubber gloves sector with its top pick being Supermax with a target price of RM2.75.

As at 4.55pm, the Supermax share price was unchanged at RM2.14. In its research report, OSK Research said the high rating on the company was premised on its attractive valuation and the fact that it operated in a recession-resilient industry.

It also said that there had been isolated cases of bird flu in Asia and that although it has not reached alarming levels, healthcare MNCs may prepare themselves by gradually stocking up rubber gloves to avoid buying them at "cut throat" price should there be a pandemic break out.

It said risks included further artificial support of rubber prices by the Indonesian and Malaysian governments, and a rising Ringgit.

It expects latex price to stay above RM7 in the shorter term. "This is due to the uplift in sentiment for the commodity created by the Thai Government," OSK Research said. Last week, the media reported that the Thai Cabinet had approved a plan to increase the price of locally-grown natural rubber to THB120 (RM11.84)/kg.

This is done through the Bank of Agriculture and Agricultural Cooperatives offering soft loans of THB5bn to local agricultural institutes and another THB10bn soft loan to the Rubber Estate Organization, both at zero per cent interest to help them purchase natural rubber from local rubber farmers.

The main reasons given for the intervention include the poor rubber prices arising from the global economic slowdown; the flooding crisis in Thailand which had temporarily suspended its production of automobiles and parts, and slower automotive growth in China.

China also slowed down its purchase of Thai natural rubber and instead had switched to the cheaper Indonesian rubber. "In our view, unless the Thai Government continues to support the price of rubber in the longer run, the price would still be ultimately decided by the forces of demand and supply," OSK Research said. -- Bernama
02 Feb 2012, 10:32 PM
Vietnam still prone to outbreaks of fatal bird flu

Vietnam continues to be susceptible to outbreaks of bird flu and the A/H5N1 virus remains deadly to those who contract it, an official said in Tien Phong (Vanguard) newspaper Friday.

Nguyen Tran Hien, chief of the National Institute of Hygiene and Epidemiology, made the statement after Vietnam reported its first two bird flu fatalities this year.

The deaths came after nearly 20 months of no reported cases of humans with the A/H5N1 virus.

According to Hien, although the latest two victims were in the prime of life– an 18-year-old man in the Mekong Delta province of Kien Giang and a 26-year-old woman in Soc Trang Province, also in the Mekong Delta-- that does not mean that the virus has become stronger.

He said that because the virus is specific to poultry, it is impossible to say whether a particular group of people may be immune to it. An individual's chance of contracting bird flu depends on the person's level of exposure to the virus and genetic predispositions, he added.

In fact, while many people have been exposed to the virus, only a few have become ill, the official was quoted as saying.

However, mortality rates for the virus are quite high, possibly 100 percent, so people must be extremely cautious, he stressed.

When asked why there have been no human reports of human cases in northern Vietnam since May, 2010, while the southern provinces recorded a few cases, Hien said it was because southern provinces host more poultry. Moreover, the practice of letting ducks roam freely in the fields has increased the risk of humans contracting the virus.

Hien was also quoted as saying that the scientists from his agency are still assessing the effectiveness and safety of A/H5N1 vaccines. Vaccines are expected to be used extensively in the near future.

According to a World Bank report in October last year, Vietnam was among the countries most affected by A/H5N1, with 119 human cases confirmed as of March 2011, of which 59 were fatal.

Since 2003, bird flu outbreaks have killed and led to the forced culling of tens of millions of fowl in Vietnam.

The World Health Organization has ranked Vietnam the country second most affected by bird flu after Indonesia.
06 Feb 2012, 09:35 AM
2012 begins with tougher challenge for glove-makers:

- Bulk‎ Latex‎ increased RM1/kg from Jan RM6.71/kg to Feb RM7.73/kg
- Rising Ringgit back to low 3.0x region to USD

Latex commodity sentiment remained volatile with:
- Impact of Thai Cabinet approval of loan plan to increase the price of locally-grown natural rubber to THB120 (RM11.84)/kg. Total of THB15bn soft laon plan at 0% interest.
- similar artificial support of rubber prices by the Indonesian and Malaysian governments
- sequential automotive growth in global (especially China) after temporarily suspended production for flooding crisis in Thailand.

26 Feb 2012, 02:50 PM
Supermax aims for 20pc revenue growth

Supermax Corp Bhd, the world's second largest rubber gloves maker by volume, aims to grow its revenue and net profit by 20 per cent this year, helped by an expansion in capacity and a pick-up in demand, its co-founder said.

The Malaysian company, which ranks behind Top Glove Corp Bhd , is also set to take advantage of falling raw material prices to improve profit margins, Executive Chairman and Group Managing Director Stanley Thai told Reuters in an interview.

"We aim to grow our revenue and income by 20 per cent this year as we expand our capacity to tap into the better demand," Thai said late yesterday at the company's headquarters in Selangor just outside the Malaysian capital of Kuala Lumpur.

Net profit fell 33 per cent to RM106.1 million (US$35 million) in the year to Dec 31 2011 from a year ago despite revenue rising five per cent to RM1.03 billion.

Fourth-quarter profit dropped 7.3 per cent and revenue rose 12.2 per cent. - Bernama
29 Feb 2012, 01:44 PM
Clear Roadmap Ahead.

The glove maker consolidated a clear and convincing plan to achieve its 2012 earning guidance of 20% growth.

On the front trading end, strategies on:
- the new UK subsidiary, enhanced the global marketing intensity on top of current thin EU coverage (from Belgium) with favorable derivation GBP/USD gain
- well established selling price review system for shorter time lag cost reflection
- surgical segment focus -- higher and consistent demand

On the back manufacturing end, aggressive cost driven actions are clear on:
- capacity expansion plan (especially Nitrile exam gloves and surgical gloves)
- productivity improvement (facility refurbishment, convertible equipment upgrades)

Supermax had exhibited its determination to resume profit growth in 2012 to overcome the rising latex cost and weaken USD.
Interim results will show the effectiveness at 1H12 when the earning guidance will be review again.

Finally, the company forked out RM22.1million dividend pay (actual ratio 21% vs 2011 16%) on top of the 33% profit fall, was much appreciated.
01 Mar 2012, 11:45 PM
The report yesterday was not bad, with a result of more than 20% earning grow yoy but why share dropped 10cts ~4.8%? Appreciate if any one could try to answer?question
18 Aug 2012, 01:31 PM
what happened to this stock? The company boss is disposing the mother share and warrant for past few months continuously. He disposed almost 20% of mother share and warrant from from 70+% to 50+% and 40+% to 20+%. Is he collecting money from the market? Is he a genuine businessman or another crocodile? I check the company past 5 year financial result, it looks great. Revenue, profit and EPS improving year by year. I invested a few recently. Now i am hesitating whether to invest more or run? Can anyone share your thought and view? thanks.
15 Jun 2013, 04:52 PM
sorry the below note is posted wrongly, it is meant for other counter, pls ignore
15 Jun 2013, 05:02 PM
CIMB Research keeps Supermax an Outperform

KUALA LUMPUR: CIMB Equities Research keeps Supermax as an Outperform, with the catalysts of strong demand and widening margins.

The research house said on Monday its FY13-15 net profit forecasts are unchanged but target price is increased by 25% from RM3.02 to RM3.76.

The research house said it rolled over its valuation to CY15 and applied a higher 13.5 times price-to-earnings (P/E) from 13 times, still at 30% discount to Hartalega’s P/E that was recently raised to 19 times from 18.7 times (in line with the increase in its KLCI target P/E to 15.9 times from 15.6 times in September).

Supermax’s unit Maxwell Glove Manufacturing Bhd entered into a sale and purchase agreement with Dragonline Resources Sdn Bhd to acquire a 40.5ha parcel of freehold industrial land in Ulu Selangor for RM78.4mil.

The proposed acquisition will be funded via internally generated funds and bank borrowings. The proposed acquisition will enable Supermax to build an integrated glove manufacturing complex. The plan will use about 60% of the land’s buildable area for the immediate expansion of nitrile glove manufacturing capacity to meet growing global demand.

The remaining 40% of the land will be sold or leased to supporting industries.

CIMB Research said funding is not an issue as Supermax has low net gearing of 0.13 times and a high interest coverage ratio of 17 times.

It advised investor to accumulate Supermax. It added the glove maker was trading at an attractive 9.5 times CY14 P/E versus the 15 times sector average.
“We believe that Supermax is on track to achieving our FY13-15 net profit forecasts,” it said.
12 Nov 2013, 09:16 AM
Analysts positive on Supermax expansion plans

PETALING JAYA: Supermax Corp Bhd’s ambitious capacity expansion plans portend favourable growth prospects for the next two years, according to analysts.

The growth would be championed by the glovemaker’s Glove City and Supermax Business Park expansion, as well as a bigger nitrile glove capacity.

Analysts at Kenanga Investment Bank Bhd said they were “excited about Supermax’s growth prospects, believing that the group is on track to delivering mid-teens growth over the next two years.”

At its post-third-quarter results briefing, the group explained its expansion plans for Glove City and Supermax Business Park, new capacity’s net margin ranging between 9% and 11% due to expected intense competition, new capacity from its two new plants, Lot 6058 and Lot 6059 in Meru, Klang, to drive growth over the next two years, and minimal concerns about higher energy costs going forward.

“The expansion at both the Glove City and Supermax Business Park sites would cost a total of RM1.3bil over an estimated 11 years. The first phase of Glove City comprises six large plants with a total capacity of 24.6 billion pieces,” Kenanga analysts said in a client note.

Glove City is expected to commence in the first half of 2015 after the two new plants have been fully commissioned at an estimated capital expenditure of RM95mil.

RHB Research Institute is positive about the glovemaker’s growth potential as well, seeing that the new plants are on track to be fully commissioned by end-2014.

“Upon full completion, both plants would boost the company’s nitrile production capacity to 12.3 billion pieces from 6.9 billion pieces. This would shift its product mix to 53% nitrile compared with 39% currently,” the RHB Research team said.

The Kenanga analysts said Supermax was already facing a two-month oversold position, given the strong demand for nitrile gloves.

On the effect of the recent electricity tariff hike, Supermax said it would incur an additional cost of RM3.5mil, which it believes can be easily passed on to customers.

“Additionally, the group is also looking into renewable energy as an alternative source to electricity. We expect any forthcoming hikes in industrial gas prices to be mostly passed on to customers,” RHB added.

That said, a few analysts have maintained a more conservative view of the group, among them, Ian Wan from Alliance Research.

“While the expansion plan seems to be very ambitious and exciting, we take a prudent stance and maintain our volume growth projection of 10% per annum for financial years 2014 (FY14) and FY15, taking a cue from the FY13 nine-month volume growth of 7.8%,” he said.

Alliance believes that a 13 times target price-to-earnings ratio is fair, with moderate earnings growth of 10.8% and 14.4% for FY14 and FY15.

AmResearch concurred on the conservative view, trimming the group’s FY13 to FY15 earnings by 6% to 8%.

Analyst Cheryl Tan noted that would mean Supermax’s FY13 volumes would only be bolstered by capacity from the converted nitrile lines at Lot 6070 at about 1.4 billion pieces.
05 Dec 2013, 01:10 PM
yeahsupermx 7106 速伯玛 RM2.31 買入之原因--

1)公司于5月公布的Q5, 2015 业绩不错,赚了 2494万,Eps=3.67sen ,nta=rm1.43
现RM2.44只是PE=16.7倍 在交易,明显被低估了,合理的PE=20,价位=RM2.92(看看其他同行的PE就知道了).
2)于31-03-2015 SUPERMX 的债务为3.47亿,公司有CASH 1.16亿.
3)于27-04-2015 年報显示30大股东已持有62.365%(424176张),市场流通量只有37.635%(255974张).
4)Rm2.44 进入,目标价rm2.92 ,Q3和Q4应有总共5sen 股息,dy约2.04% .我觉得2015或2016年有机会
6)Supermx 绝对是投资者的首选股,公司的潜在价值好,成长佳,将会是一只黑马股。


Supermax Corporation Berhad is a leading international
manufacturer, distributor and marketer of high quality medical gloves.
Established in 1987, its founders started a trading business to distribute
latex gloves and eventually ventured into manufacturing of latex gloves
in 1989. Today, the Supermax Group has eleven factories manufacturing
various types of natural rubber and nitrile latex gloves, which are exported
to over 155 countries around the world, such as the United States of America,
European Union, Middle East, Asia and South Pacific countries.
The Group has received numerous accolades and awards over the years,
including The Edge Billion Ringgit Club’s inaugural Company of the Year
Award in 2010, Export Excellence & Brand Excellence in the Industry
Excellence Awards in 2009 and 2008, Special Award & 4th placing in the
prestigious Deloitte’s Top 50 Enterprise Award Malaysia in 2006, Export
Excellence & Product Excellence in the Industry Excellence Awards in 2003,
the National Productivity Council Award in 1999 and Andersen Consulting
Top 50 Enterprise in Malaysia in 1998. One of the founders, Dato’ Seri Stanley
Thai himself, also won 2 very prestigious awards in 2010, i.e. Malaysia’s
Ernst & Young Entrepreneur of The Year Award 2010 and Malaysia’s CEO of
The Year Award 2010.
Supermax is well recognized for its commitment to deliver quality products
and service to its customers. These accomplishments testify to the Group’s
relentless efforts in enhancing productivity in order to compete in the
global market.
31 Jul 2015, 11:28 AM
速伯玛supermx 7106 rm3.08 重新拥有---
--于30-09-2015 SUPERMX 的债务为4.72亿,公司有CASH 1.81亿.
--于27-04-2015 年報显示30大股东已持有62.365%(424176张),市场流通量只有37.635%(255974张).
于22-10-2015 美国公司 Brown Brothers Harriman and Co 与 State Street Bank and Trust Co
已累积5.13% supermx股票(34413,000股),就是看好公司成长前景.
a)rolling 4 Quarters;supermx 股价=3.09 ,eps=16.12 ,nta=1.57 ,roe=10.26 , pe=19.17
b)rolling 4 Quarters;topglov 股价=13.00 ,eps=57.7 ,nta=2.78 ,roe=20.74 , pe=22.53
c)rolling 4 Quarters;harta 股价=5.99 ,eps=13.87 ,nta=0.86 ,roe=0.16 , pe=43.2
d)rolling 4 Quarters;kossan 股价=8.94 ,eps=29.09 ,nta=1.43 ,roe=20.21 , pe=30.74
--速柏玛获英国NHS 执照 供应医疗手套4年,2017至2020财年的收益会有长远正面效应,
18 Dec 2015, 06:37 PM
supermx 速伯玛7106 有望派红股吗?
4)公司股本与现金比例,bonus 2 送 1 不是问题.
股本:340m ,现金:181m


2016 年1月 红股1送1(等待批准).

22 Dec 2015, 05:32 PM
Supermx another superStock in the making ! Yeah !
01 Jan 2016, 07:58 PM

Its a rubbish CIMB put valuation of rm 2.30.By the way,there a possible if trade war gone or rising cost of raw materials or supply more than demand in global market.Put valuation of 80 cent-rm 1.00.There also right issues as combination of debts which current trend investors do not prefer.Look like Dayang as example.Right issues coming its drop like shit.

07 Sep 2019, 01:15 AM

SUPERMX (7106) - Technical and Fundamental Analysis

Technical Analysis


Long Term View

- SUPERMX shares prices have tried 4 times to breakout RM1.386 since Y2010 so we believe RM1.344 is a significant price level. - Meanwhile, it starts on a long term upward trend in Dec 2014 but there is a discontinue period in Jan 2017. (PS: It is still an upward trend due to SUPERMX shares price don't drop lower than previous low RM0.820)

- After a short-term drop off from the upward trend, EMA20-EMA


01 Dec 2019, 08:23 PM

SUPERMX (7106) - 技术和基本面分析





- SUPERMX的股价自2010年以来曾尝试4次突破1.386令吉,因此我们认为1.344令吉是一个重要的价位。

- 同时,它在2014年12月开始长期上升趋势,但在2017年1月时有一个期间掉离了上升趋势。由于SUPERMX的股价没有低于之前的低位RM0.820,我们仍然解读她是一个上升趋势。

- 在从上升趋势中短暂下跌之后,EMA20-EMA240在2018年1月


01 Dec 2019, 08:24 PM

[SUPERMAX LATEST ANALYSIS] Coronavirus effect:

29 Jan 2020, 01:33 AM

Industry Comparison for Gloves Industry






01 Apr 2020, 05:01 PM

upgrade.Buy call rm 21-rm 22.TP rm 36 or more.Anything more will be added bonus.Expect supernormal profit few more quarter.

10 Aug 2020, 07:48 PM

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