SUPERMX 7106 Share Price

The Group has continued to record another strong quarter with sales revenue close to the RM2.0 billion level again while PBT and PAT levels all remaining well in excess of RM1.0 billion. The strong performance was mainly on the back of continued strong demand for the Group’s medical gloves as well as for other PPEs such as
masks, sanitizers, gowns, and face shields sold/distributed by the Group’s overseas, continued rise in average selling prices (ASPs) and higher contribution of earnings of Own brand Manufacturing (OBM) sales, from both the Manufacturing & Distribution Divisions.

There was heavy selling pressure on rubber glove counters this morning. Top Glove Corp Bhd led the fall. As for its peers, Supermax Corp Bhd slid 37 sen or 6.15%.

CGS-CIMB Research said Supermax Corp Bhd will likely be included in the FBM KLCI index for the first time, replacing KLCCP Stapled Securities as the latter is ranked the lowest among the current 30 KLCI constituents by market capitalisation as at end of 23 Nov 2020. In a strategy note yesterday, CGS-CIMB said FTSE Russell is due to announce the results of its upcoming semi-annual review of FTSE Bursa Malaysia Index Series on Dec 3, 2020. The research house said it expects the review to use the market capitalisation data at the close of trading on Nov 23. It said all constituent changes in the review will take effect on Dec 21.

The Group has continued to receive strong demand for its gloves as the global pandemic continued to spread around the world since the early part of the year. Revenue grew by another 45.6% or RM423.4 million compared to the preceding quarter while PAT increased by 99.0% or RM404.2 million. Profitability continued to improve substantially mainly due to contribution from the 100% fully commissioned Plant 12 Block A lines which are with installed capacity of 2.2 billion gloves, higher contribution of earnings of Own brand Manufacturing sales, continued rise in average selling prices, earnings contribution from the exponential growth in demand and streamlining of the Supply Chain.

Supermax Bhd’s unit Maxter Glove Manufacturing Sdn Bhd is acquiring two tracts of land measuring about 216,142 sq ft for the construction of its operations headquarters for RM73.49mil cash. The group said in a filing that Maxter had entered a sales and purchase agreement with Bandar Setia Alam Sdn Bhd to acquire the freehold land, and that it will be funded via internally generated funds and bank borrowings.

Shares of Supermax Corp Bhd slipped further by as much as 5.94% today, which is the last date of lodgement for its one-for-one bonus issue. At 3.42pm, the counter was still down 5.52% or 53 sen at RM9.07 after pairing some of its losses, with 10.46 million shares traded. At this price, the group is valued at RM24.68 billion. The counter was among the top losers on Bursa Malaysia.

The Group continued to receive strong demand for its gloves as the global pandemic continued to spread around the world since the early part of the year. Compared to the preceding quarter, revenue rose by 107.7% to RM929.1 million.