August 29, 2021

Supermax Shows 'Super Power' Surge, Highest Profit Of RM3.81 Billion!

 Supermax Corp Bhd's share price showed an increase of 15 sen or 4.87% to RM3.23 in trading session on Bursa Malaysia today.

The surge was driven after the company announced a special dividend of 15 sen per share and posted a net profit to the highest level in the second quarter ended June 30, 2021.

Supermax has earned a net profit of RM3.81 billion from RM524.8 million achieved last year due to rising demand for gloves.

At the midday break, Supermax's share price remained up 2.27% to RM3.15.

At RM3.20, the group has a market capitalization of around RM8.32 billion based on 2.6 billion shares of the company issued.

According to a research report released, the expected decline in selling price (ASP) is likely to be faced by the rubber glove manufacturer.

TA Securities Holdings Bhd analyst Tan Kong Jin said despite the new wave of Covid-19 globally, ASP gloves continued to be on a downtrend.

According to him, the factor is influenced by market competition and there are currently more new capacities available in the market.

However, Supermax said that it hopes that the demand for gloves as a personal protective device will continue to increase as the world continues to fight the Covid-19 epidemic.

The group also reported that full revenue jumped to RM7.16 billion this financial year from RM2.13 last year.