Supermax Corp Facing Losses

Supermax Corp, a prominent glove manufacturer, faced setbacks as it grappled with losses in the past five quarters. The Malaysia-based company experienced a decline in its shares, dropping by 5.4% and settling at 0.88 ringgit by Wednesday morning, thus reducing its 12-month gains to 5.4%.

Financial Update

Despite reporting a narrowing net loss of 44.36 million ringgit in the fiscal second quarter ended December, Supermax Corp still struggles against persistent challenges in its operating environment. Factors contributing to their losses include lower foreign exchange losses and increased interest income. The ongoing weak demand and intense competition have led to low average selling prices, with quarterly revenue falling by 17% compared to the previous year.

Future Outlook

Supermax Corp remains cautious about potential recovery, predicting a meaningful turnaround possibly in 2025. However, Kenanga Investment Bank foresees further struggles for the company ahead, anticipating a net loss of MYR5 million for the fiscal year ending in June, a significant departure from their previous forecast of a net profit of MYR 26 million.

Glove Industry Prospects

Amidst oversupply challenges, the demand-supply balance for gloves is not expected to improve until 2026, according to Kenanga analyst Raymond Choo Ping Khoon. He highlighted that global glove demand continues to rise at a rate of 15% annually due to an increase in hygiene awareness.


Kenanga has adjusted its target price for Supermax Corp to MYR0.84 and maintained an underperform rating based on the company’s disappointing results in the first half of the fiscal year.

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