Supermax – Super results on the way. Supermax is
scheduled to release its 3Q09 results on Thursday, 15
Oct. Judging from the strong 4Q results announced by
Top Glove recently, Supermax is likely to post a strong
set of results too. Annualised 9M09 earnings are likely
to outstrip our full-year forecast of RM92.5m by around
15%, thanks to out performance of both the top line and
margins. For now, we retain our earnings forecasts
which we are likely to raise after the release of the
results. However, as we are now in the final quarter of
2009, we roll forward our target price to end-10. This
lifts our target price from RM4.02 to RM4.28, still
pegged to an unchanged 30% discount to Top Glove’s
target P/E, which is, in turn, based on our target
market P/E of 15x. Potential re-rating catalysts for
Supermax include the anticipated 3Q results
out performance, continuing uptick in glove demand and
upcoming capacity expansion plans. Supermax remains a
BUY.
complements of CIMB Events
Oct 24 (Kuala Lumpur) – 9.30am to 12.30pm
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