Stock Name: SUPERMX
Company Name: SUPERMAX CORPORATION BHD
OSK Research Sdn Bhd maintained its "buy" call on Supermax Corps Bhd at RM5.50 unchanged fair value as the group delivered within expectation results for the third quarter ended Sept 30, 2011.
"We continue to like the stock's attractive valuation and recession-proof
nature of the industry. "Overall, the company outperformed its peer Top Glove, which posted flat quarter-on-quarter results," OSK said in a statement today.
Among the listed rubber glove manufacturers, Top Glove is the ideal
candidate for comparing with Supermax since both companies have nearly the same product mix, with about 70 to 80 per cent natural rubber glove.
In Top Glove's recently announced quarterly results, its number was almost
flat quarter-on-quarter, which contrasts with Supermax's 14 to 16 per cent
improvement.
Going forward, the worst may be over since latex price has retracted to
below RM8 a kilo for the first time this year, indicating that speculations on
the commodity have eased, OSK added. -- Bernama
Company Name: SUPERMAX CORPORATION BHD
| Research House: OSK | Price Call: BUY | Target Price: 5.50 |
OSK Research Sdn Bhd maintained its "buy" call on Supermax Corps Bhd at RM5.50 unchanged fair value as the group delivered within expectation results for the third quarter ended Sept 30, 2011.
"We continue to like the stock's attractive valuation and recession-proof
nature of the industry. "Overall, the company outperformed its peer Top Glove, which posted flat quarter-on-quarter results," OSK said in a statement today.
Among the listed rubber glove manufacturers, Top Glove is the ideal
candidate for comparing with Supermax since both companies have nearly the same product mix, with about 70 to 80 per cent natural rubber glove.
In Top Glove's recently announced quarterly results, its number was almost
flat quarter-on-quarter, which contrasts with Supermax's 14 to 16 per cent
improvement.
Going forward, the worst may be over since latex price has retracted to
below RM8 a kilo for the first time this year, indicating that speculations on
the commodity have eased, OSK added. -- Bernama
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