SUPERMAX at a glance

 

Supermax at a glance

 

Supermax

 

Analysts see rubber glove stocks bouncing off

TheEdge Thu, Mar 05, 2020


KUALA LUMPUR: The Covid-19 epidemic has pushed investors into stocks of rubber glovemakers, which have seen an uptick in demand.

The Healthcare Index climbed 13.77 points or 1.03% to close at 1,344.72 yesterday, with the Big Four rubber glove players dominating the list of most active counters on Bursa Malaysia.

Among the most active stocks was Careplus Group Bhd, which saw 62.9 million shares change hands. The stock closed up 12.73% at 31 sen with a market capitalisation (cap) of RM165 million.

Shares in Adventa Bhd gained 10.77% to settle at 72 sen, bringing a market cap of RM110 million.

Supermax Corp Bhd rose 5.59% to end the day at RM1.70, while Hartalega Holdings Bhd and Kossan Rubber Industries Bhd were up 3.48% and 1.46% to close at RM6.24 and RM4.85 respectively. Top Glove Corp Bhd shares were unchanged at RM5.70.

Analysts said the stage is now set for a solid growth in the rubber gloves sector in 2020 following three quarters of anaemic quarterly earnings growth.

“From a low base due to the lacklustre demand of the past 12 months, the sector will benefit from restocking activities, ramping up demand as the current outbreak of Covid-19 enforces higher hygiene standards,” Kenanga Research analyst Raymond Choo Ping Khoon said in a sector report on Feb 7.

He noted that even before the Covid-19 crisis set in, the third quarter of 2019 (3Q19) results season had indicated a positive recovery in demand and hence, volume growth of industry leaders such as Top Glove and Hartalega. Both players recorded 6% and 14% sequential volume growth, respectively.

“From our ground checks, demand for nitrile gloves is picking up again with players’ new capacities swiftly taken up. We believe this uptick in demand is turning positive and should be reflected in players’ bottom line in subsequent quarters.

“For illustration purposes, going forward, assuming nitrile:latex [ratio] of 80:20 (currently 67:37) and based on estimated global demand of 308 billion pieces in 2020 (forecast for 2019 is 300 billion pieces and assuming an 8% growth rate in 2020), this implies nitrile growth rate of 30% or an additional 51 billion pieces from switching to nitrile gloves,” he added. Kenanga Research has an “overweight” rating on the sector.

Affin Hwang Investment Bank said earnings growth for rubber glovemakers declined slightly in the just-ended 4Q19 as some of the manufacturers were still feeling the negative impact from the labour shortage issue.

“However, most of them have started to deliver stronger quarter-on-quarter earnings growth due to stronger demand from the US, as buying patterns have started to normalise since the tariff hike in China gloves in 3Q19. We believe that as most manufacturers are already operating at high utilisation rates, the recent surge in demand due to Covid-19 would provide them more flexibility in setting selling prices,” it said in a strategy note on Tuesday.

On Jan 24, Malaysian Rubber Glove Manufacturers Association president Denis Low announced that its members are prepared to gear up to produce more gloves to meet the requirements if the Covid-19 outbreak becomes pandemic.

At press time, the number of confirmed cases of Covid-19 totalled 93,500, with at a death toll of at least 3,204 people worldwide.

Confirmed cases have also been ballooning in other parts of the world, including in advanced and developing economies such as South Korea, Italy and Iran. Malaysia reported 14 new cases yesterday, bringing its tally to 50.

According to Bloomberg data, most of the glove counters are still trading below analysts’ consensus target price (see table), except for Hartalega. At yesterday’s closing of RM6.24, the stock is trading above its average target price of RM6.15.

Those currently trading below the analysts’ consensus target prices are Comfort Gloves Bhd (21%), Kossan (15%), Supermax (14%) and Top Glove (5%).


https://www.klsescreener.com/v2/news/view/647178/analysts-see-rubber-glove-stocks-bouncing-off

ADVENTA    0.715
AFFIN           1.770
BURSA         5.480
CAREPLS     0.305
COMFORT   0.875
HARTA         6.220
KENANGA   0.440
KOSSAN      4.940
SUPERMX   1.720
TOPGLOV    5.720

Supermax 24.8.2017

Supermax		24.8.2017
5 Years Quarterly Report History
Qtr	Financial	Revenue	PBT	PAT	PBT
No	Quarter	(RM,000)	(RM,000)	(RM,000)	Margin
3	31-Mar-17	308,226	20,894	19,754	6.8%
2	31-Dec-16	236,737	26,985	22,571	11.4%
1	30-Sep-16	269,002	26,488	19,537	9.8%
-	30-Jun-16	266,539	34,783	6,787	13.0%
-	31-Mar-16	225,002	33,484	19,670	14.9%
-	31-Dec-15	290,737	46,263	38,820	15.9%
-	30-Sep-15	309,868	48,327	38,455	15.6%
-	30-Jun-15	229,382	29,538	24,743	12.9%
-	31-Mar-15	223,208	28,227	24,947	12.6%
4	31-Dec-14	258,750	32,527	20,068	12.6%
3	30-Sep-14	278,383	32,381	27,812	11.6%
2	30-Jun-14	238,100	32,259	26,762	13.5%
1	31-Mar-14	232,273	32,140	26,596	13.8%
4	31-Dec-13	192,236	37,984	25,044	19.8%
3	30-Sep-13	284,564	40,526	35,806	14.2%
2	30-Jun-13	330,004	39,802	35,484	12.1%
1	31-Mar-13	320,540	36,767	31,787	11.5%
4	31-Dec-12	322,258	42,332	32,093	13.1%
3	30-Sep-12	245,513	33,836	31,600	13.8%
2	30-Jun-12	232,101	33,295	30,000	14.3%
5 Years Trailing 4 Quarters
No.	Financial	ttm-Rev	ttm-PBT	ttm-PAT	ttm-PBT
Qtr.	Quarter	(RM,000)	(RM,000)	(RM,000)	Margin
3	30-Jun-17	1,080,504	109,150	68,649	10.1%
2	30-Jun-17	997,280	121,740	68,565	12.2%
1	30-Jun-17	1,051,280	141,018	84,814	13.4%
-	30-Jun-16	1,092,146	162,857	103,732	14.9%
-	30-Jun-16	1,054,989	157,612	121,688	14.9%
-	30-Jun-16	1,053,195	152,355	126,965	14.5%
-	30-Jun-16	1,021,208	138,619	108,213	13.6%
-	30-Jun-16	989,723	122,673	97,570	12.4%
-	30-Jun-16	998,441	125,394	99,589	12.6%
4	31-Dec-14	1,007,506	129,307	101,238	12.8%
3	31-Dec-14	940,992	134,764	106,214	14.3%
2	31-Dec-14	947,173	142,909	114,208	15.1%
1	31-Dec-14	1,039,077	150,452	122,930	14.5%
4	31-Dec-13	1,127,344	155,079	128,121	13.8%
3	31-Dec-13	1,257,366	159,427	135,170	12.7%
2	31-Dec-13	1,218,315	152,737	130,964	12.5%
1	31-Dec-13	1,120,412	146,230	125,480	13.1%
4	31-Dec-12	1,048,394	140,168	121,675	13.4%
3	31-Dec-12	1,002,336	127,147	117,765	12.7%
2	31-Dec-12	1,028,242	127,399	117,075	12.4%
5 Years Adjusted EPS, DPS, NTA and ttm-EPS for capital changes
No of shares (m)		671.9
		adj	adj	adj	adj	adj
Qtr	Financial	EPS	DPS	NTA	ttm-EPS	ttm-DPS
No	Quarter	(Cent)	(Cent)	(RM)	(Cent)	(Cent)
3	31-Mar-17	2.94	2.5	1.56	10.22	4.52
2	31-Dec-16	3.36	0.0	1.57	10.20	4.05
1	30-Sep-16	2.91	0.0	1.53	12.62	6.07
-	30-Jun-16	1.01	2.0	1.54	15.44	6.07
-	31-Mar-16	2.93	2.0	1.57	18.11	6.07
-	31-Dec-15	5.78	2.0	1.54	18.90	4.05
-	30-Sep-15	5.72	0.0	1.57	16.11	5.06
-	30-Jun-15	3.68	2.0	1.46	14.52	7.08
-	31-Mar-15	3.71	0.0	1.45	14.82	5.06
4	31-Dec-14	2.99	3.0	1.46	15.07	5.06
3	30-Sep-14	4.14	2.0	1.42	15.81	5.06
2	30-Jun-14	3.98	0.0	1.38	17.00	5.03
1	31-Mar-14	3.96	0.0	1.35	18.30	5.03
4	31-Dec-13	3.73	3.0	1.34	19.07	5.03
3	30-Sep-13	5.33	2.0	1.36	20.12	5.05
2	30-Jun-13	5.28	0.0	1.37	19.49	5.08
1	31-Mar-13	4.73	0.0	1.28	18.68	5.08
4	31-Dec-12	4.78	3.1	1.32	18.11	5.08
3	30-Sep-12	4.70	2.0	1.25	17.53	2.91
2	30-Jun-12	4.46	0.0	1.21	17.42	2.41
Capital changes
No.	Financial	No of
Qtr.	Quarter	Shrs (m)
3	31-Mar-17	671.9
2	31-Dec-16	671.8
1	30-Sep-16	676.0
-	30-Jun-16	678.7
-	31-Mar-16	680.6
-	31-Dec-15	679.9
-	30-Sep-15	680.6
-	30-Jun-15	679.8
-	31-Mar-15	679.8
4	31-Dec-14	680.3
3	30-Sep-14	680.0
2	30-Jun-14	681.0
1	31-Mar-14	680.2
4	31-Dec-13	680.5
3	30-Sep-13	668.0
2	30-Jun-13	691.7
1	31-Mar-13	673.5
4	31-Dec-12	685.7
3	30-Sep-12	679.6
2	30-Jun-12	680.3
1	31-Mar-12	679.2
4	31-Dec-11	341.6
3	30-Sep-11	340.0
2	30-Jun-11	339.9

Comments:

Seems to have lost the competitive edge.