Supermax

[winston]

not vested

Analysts cut Supermax earnings forecasts, target prices on lower ASP expectations

by Tan Siew Mung

Kenanga downgraded his TP to RM6.80 from RM7.80 based on 11 times 2022 revised earnings per share (EPS) of 61.9 sen (previously 12 times).

RHB lowered TP to RM6.60 from RM8.75 due to a reduction in his earnings estimates and that of the long-term blended ASP to US$37.

MIDF lowered the TP to RM6.73 from RM13.83.

Affin hwang lowering the TP to RM7.40 (from RM10.90).

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/566776

[winston]

not vested

Supermax puts SGX listing on hold

Strong cashpile of RM3.7 billion as of end-March.

It is planning for production capacity expansion of 22.2 billion pieces of gloves in the next two years from Plant 13 to 17, locally.

Source: Bernama

https://www.malaymail.com/news/money/20 ... ld/1972355

[winston]

not vested

ASP peaked in 3QFY21; not a surprise

SUCB highlighted that the Covid-19 outbreak among its workers in 3QFY21, resulted in estimated 16-18% qoq decline in the quarter’s sales volume.

While its glove ASPs likely peaked in 3QFY6/21, we are not overly concerned as we have expected the ASPs to decline from 4QFY21F onwards.

Maintain Add, with unchanged TP of RM6.60. Our TP is based on 15x CY23F P/E to reflect a more balanced supply-demand dynamic in the glove sector.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 78AD0AC56E

[winston]

not vested

On stock selection, following a below par 3Q21 results and a more cautious outlook given by its management (vs its peers), SUPERMX (RM4.63-Not-rated) share price had plunged 17% in three days and 38% from YTD high.

Currently, the stock is trading at undemanding FY23 P/E of 9.3x (considering a more balanced supply-demand environment post-pandemic, we use consensus FY23 EPS of 50sen), which is trading at 43% discount compared with average 5Y P/E of 16.3x.

The stock is also offering a FY23 dividend yield of 4.8%.

Technically, the risk-reward ratio has become more attractive after recent rout and grossly oversold indicators, with key supports situated at RM4.40-4.30-4.10.

A decisive push above the RM4.80 resistance will enhance upward momentum towards RM5.00-5.20-5.40 levels.

Source: HLIB

[behappyalways]

Supermax: Rubber glove spot prices on downtrend, falling 15% to 25%
https://www.theedgemarkets.com/article/ ... fall-15-25

[winston]

not vested

Decline in ASPs going forward is priced-in

FY6/21 core net profit of RM3.9bn (+649% yoy) was below our estimate, due
to weaker sales volume and lower-than-expected associate contribution

Going forward, we expect SUCB to be severely impacted by declining ASPs
in the sector given the large quantum of ASP increases enjoyed in CY20.

Maintain Hold, with lower TP of RM3.20 (16x CY23F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... BCE056A374

[behappyalways]

Moving forward, the group expects to see a continued normalising in the rubber glove business as ASPs and demand continue to decline from the pandemic highs.


Supermax 3Q net profit drops 99% as gloves ASP and demand subside; declares 3 sen dividend
https://www.theedgemarkets.com/article/ ... n-dividend

[behappyalways]

Old news but there are the articles I like to remind myself even when the company's valuation looks good

In the letter sighted by The Edge, which a spokesperson for Cecile confirmed is authentic, Cecile accused her father of wanting to remove her from the board because she opposed his proposal to purchase a new aircraft for US$47.39 million (RM210.32 million) to replace one that was acquired only a year before.

Supermax saga: The 'Thais' that don't bind
https://theedgemalaysia.com/node/664099