Supermax

Re: Supermax

Postby winston » Thu May 30, 2019 10:29 am

not vested

Feb 13, 2019

Outlook

On its contacts lens division, it is expanding its product range to include other types of lenses such as toric and colour lenses. Meanwhile, the group continues to work on obtaining the necessary product licences, especially China market.

Global glove demand is expected to grow at a rate of 8% to 10% per annum. With continuous refurbishment of older plants and upcoming Plant 12 (4.4bn gloves) in Klang, the group’s total capacity is expected to increase to 29.4bn in 2020 from 23.4bn gloves currently.

Valuation
Our TP is lowered to RM2.28/share (previously RM2.37/share) upon rolling forward our valuation year to CY20 based on a lower PE multiple of 21.0x (previously 24.0x). Maintain Buy.

Source: TA Securities
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Re: Supermax

Postby winston » Mon Jul 15, 2019 12:24 pm

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Top 10 2H Pick

Supermax Corp Bhd

Last Friday, CIMB Research analyst Walter Aw told investors that glovemaker Supermax is now trading at a 47% discount when compared with its peers in the same sector, based on its 14 times forward price-to-earnings ratio (PER) versus the local sector’s average forward PER of 26.3 times.

In a July 12 note, Aw also noted the group has been trading at an average 28% discount to the Malaysian glove sector’s average in the past five years. The large discount is mostly due to uncertainties over its expansion plans (water supply issues that led to a delay in the commissioning of two new glove plants in 2015-17), regulatory risks, and weak earnings delivery track record.

“Moving forward, we believe Supermax’s P/E valuations would catch up with its local peers, given improving clarity on its expansion plans and expectations of stronger earnings delivery.

Hence, we view Supermax as a laggard play to the sector and find its P/E valuation attractive at this juncture,” Aw said. He has placed the stock on “add” and raised the target price (TP) for it to RM2.30.

Supermax closed two sen higher at RM1.63 last Friday. Eight of nine research houses covering the stock have it on “buy”, with a median TP of RM2, indicating a potential 22.7% upside.

Source: The Edge
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Re: Supermax

Postby winston » Wed Jul 17, 2019 10:04 am

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July 12, 2019

Supermax (SUCB MK) – Maintain Add, with a higher TP of RM2.30

We make no changes to our FY19-21F EPS estimates.

However, we raise our TP to RM2.30, as we peg it to a higher target CY20F P/E multiple of 18.8x (vs.18x previously), still based on 1 s.d. above its historical 5-year mean of 15.4x.

Backed by stronger economies of scale and glove capacity expansion plans (25.6% yoy growth by end-2019F, based on our estimates), we expect Supermax to record a robust 3-year EPS CAGR of 11.5% (FY18-21F).

We also believe Supermax’s current valuation of 13.2x CY20F P/E (at a 51.3% discount to the local glove sector average of 27.1x), is appealing.
We maintain our Add call on Supermax, with a higher TP of RM2.30.


Source: CIMB
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Re: Supermax

Postby winston » Sat Aug 31, 2019 6:50 am

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Supermax posts 58.9% jump in Q4 net profit to RM15.06m

KUALA LUMPUR: Supermax Corp Bhd's net profit for the fourth quarter ended June 30, 2019, was RM15.06mil, a 58.9% jump from the same quarter in 2018 on higher sales revenue.

Group revenue rose 14.1% year-on-year (y-o-y) to RM375.96mil amid a rise in sales contribution from natural rubber and nitrile rubber gloves.

In a statement to the stock exchange, the group said the improved sales revenue was owing to the commissioning of the new replacement lines within the group and a stronger US dollar-ringgit exchange rate.

EBITDA for the quarter rose 0.3% while pre-tax profit slipped 10.7% on the back of an increase in production costs, including raw material costs.

For the full financial year, Supermax's net profit came in at RM123.75mil, 16% higher than previous year's result, while revenue grew 14.2% to RM1.49bil.

According to the statement, the group maintained a net gearing of 0.19x and a cash and cash equivalent positon of RM173.8mil as at June 30.

Moving forward, Block of A of Plant 12 is close to completion while Block B is scheduled for completion in 2020.

Each new block will provide an additional production capacity of 2.2 billion pieces per annum.

"By CY2024, upon the completion of the 3 new plants we have planned, our capacity will increase by approximately 13.2 billion pieces per annum.

"All additional new capacity will only lower our lead-time of 60 days to a more ideal level," said the group.

In the contact lens division, the group continues to work towards obtaining licences and approvals to increase market penetration globally.

Source: The Star

https://www.thestar.com.my/business/bus ... 4qj7rye.99
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Re: Supermax

Postby winston » Mon Sep 02, 2019 9:31 am

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An unexpected blip

FY6/19 core net profit of RM117.3m was below expectations, at 91% of our and 89% of Bloomberg consensus' full-year estimates.

We expect stronger earnings ahead, on the back of:-
i) recovery in glove selling prices
ii) capacity expansion and
iii) better cost efficiencies.

Maintain Add, with lower TP of RM2.03 (18.8x CY20F P/E).

Source: CIMB

https://brokingrfs.cimb.com/KmYoyNioZpf ... Qa02g2.pdf
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Re: Supermax

Postby winston » Sat Sep 07, 2019 8:10 am

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Local glove makers benefit from US-China trade war, Supermax says

KUALA LUMPUR: Rubber gloves manufacturer, SUPERMAX CORPORATION BHD, is expecting its exports to increase by 10 per cent, boosted by sales of medical gloves due to the ongoing US-China trade war.

Group managing director Datuk Seri Stanley Thai Kim Sim said this was because the US government had imposed a 10 per cent tariff on medical gloves made in China starting from Sept 1.

Supermax’s exports to the US currently account for 30 per cent of its total exports.

"The US-China trade war has and will continue to disrupt the global supply chain, and this augurs well for the company," he told a media briefing after announcing the company's full year results here today.

Thai said Malaysia is one of the countries benefiting from the trade tiff between the two economic giants.

He also said that Supermax's industrial glove market -- which currently accounts for about 10 per cent of its total exports -- is set to grow as non-medical gloves made in China have also been slapped with a 25 per cent import duty by the US government back in May.

"This is an unfortunate event but it also created an opportunity for Malaysian manufacturers to increase their market presence in the US," he said.

On capacity, he said the company aims to increase its production to 27 billion tonnes by December 2020 from the current 21.75 billion tonnes, and plans to boost it to 44.1 billion tonnes by 2024.

Supermax has allocated RM1.1 billion in capital expenditure for the next 4.5 years.

On its expansion plan, he said the company’s three new plants will be completed by the first quarter of 2020 (Q1 2020), Q2 2021 and Q3 2022.

"We want to continue to reward our shareholders and we are going to adopt certain business strategies. We will announce it on Bursa Malaysia," he said.

For the financial year ended June 30,2019, Supermax Corp's net profit rose to RM123.75 million from the RM106.66 million registered in the same period a year ago, while revenue was up at RM1.49 billion versus RM1.30 billion previously.

Source: Bernama

https://www.thestar.com.my/business/bus ... EHre91w.99
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Re: Supermax

Postby winston » Thu Sep 19, 2019 6:42 am

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Supermax proposes dividend of one share for every 65 held

Supermax proposes dividend of one share for every 65 held

KUALA LUMPUR: SUPERMAX CORPORATION BHD has proposed a final dividend via the share dividend distribution of one treasury share for every 65 shares held.

The glove maker said on Wednesday the share dividend was for the financial year ended June 30, 2019.

It will seek shareholders' approval at its 22nd AGM.

The proposed entitlement and payment dates for the share dividend will be decided later.

Source: The Star

https://www.thestar.com.my/business/bus ... bVtLi19.99
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Re: Supermax

Postby winston » Fri Nov 29, 2019 12:59 pm

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1QFY20: Earnings hit by stiff competition

1QFY6/20 net profit of RM24.7m (-15.9% yoy) was below expectations, at 18% of our and Bloomberg consensus’ full-year estimates.

The weaker-than-expected 1QFY20 results were due to:
i) stiffer pricing competition leading to ASP decline, and
ii) sharp rise in operating expenses.

Maintain Add, with a lower TP of RM2.00 (18.8x CY21 P/E)

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 5D2ED2573B
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Re: Supermax

Postby winston » Thu Feb 27, 2020 9:15 am

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Better days ahead

1HFY6/20 net profit of RM54.9m was below our expectations.

We attribute this to:
i) higher labour-related costs and
ii) lower associates’ contribution.

SUCB should record sequentially stronger quarters ahead, backed by favourable supply-demand dynamics and commissioning of new capacity.

Reiterate Add, with an unchanged TP of RM2.00 (+1 s.d. from 5-year mean).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3E88864913
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Re: Supermax

Postby winston » Wed Jun 03, 2020 11:46 am

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Supermx

Supermx produces 26 billion rubber gloves a year. 63% is Nitrile gloves, the balance 37% is latex or other gloves. Supermx produces 16.38 billion Nitrile gloves a year (63%)

Assume the selling price of Nitrile glove at USD 0.03 per piece or RM 0.126
Total revenue = 16.38 billion*RM 0.126 = 2.063 billion.

Supermx produces 9.62 billion Latex gloves a year (37%).
Assume the selling price of latex glove at USD 0.02 per piece or RM 0.084
Total revenue = 906.75 million*RM 0.084 = 808.08 million

Grand total revenue = 2.063 billion + 808.08 million = 2.871.96 billion
At 30% margin, PBT = 861.59 million

Assume 20% tax, PAT = 689.27 million
NOS = 1,360 million
EPS = 689.27/1360 = 0.51

If PER = 20, the target price = 10.14.
If PER = 26, the target price = 13.18.

Source: Koon Yew Yin

https://klse.i3investor.com/blogs/koonyewyinblog/
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