KUALA LUMPUR (March 2): CIMB Equities Research is maintaining its Outperform on SUPERMAX CORPORATION BHD [] and target price of RM2.43.
It said on Friday the target price was on the basis of 9.79 times forward P/E or 25% below Top Glove’s two-year average.
“The rerating catalyst is the start of its 28 million pairs a month surgical glove plant in March 2012, which will boost FY12 pretax profits by 20%,” it said.
CIMB Research said investors should accumulate Supermax’s shares. Valuations are undemanding at an FY12 P/E of 9.6 times, 53.8% below Top Glove’s despite its superior returns and yields.
“Competition and overcapacity risks are there but its focus on distribution and own-brand gloves will shield it from the next one to three years of glut,” it said.
Maintain Outperform and target basis of 9.79x forward P/E or 25% below Top Glove’s 2-year average. The rerating catalyst is the start of its 28m pairs/month surgical glove plant in Mar 2012, which will boost FY12 pretax profits by 20%.
It said on Friday the target price was on the basis of 9.79 times forward P/E or 25% below Top Glove’s two-year average.
“The rerating catalyst is the start of its 28 million pairs a month surgical glove plant in March 2012, which will boost FY12 pretax profits by 20%,” it said.
CIMB Research said investors should accumulate Supermax’s shares. Valuations are undemanding at an FY12 P/E of 9.6 times, 53.8% below Top Glove’s despite its superior returns and yields.
“Competition and overcapacity risks are there but its focus on distribution and own-brand gloves will shield it from the next one to three years of glut,” it said.
Maintain Outperform and target basis of 9.79x forward P/E or 25% below Top Glove’s 2-year average. The rerating catalyst is the start of its 28m pairs/month surgical glove plant in Mar 2012, which will boost FY12 pretax profits by 20%.
