Supermax Corp. Shares Drop After Fifth Straight Quarterly Loss
**Supermax Corp.** shares tumbled as the glove maker experienced its fifth consecutive quarter of losses. The Malaysia-listed company saw its share price drop by as much as 5.4% before settling at 4.9% lower at 0.88 ringgit on Wednesday morning. This decrease has reduced its 12-month gains to 5.4%.
Supermax reported a net loss of 44.36 million ringgit ($9.2 million) in its fiscal second quarter ended December. This is an improvement from the 108.1 million ringgit loss recorded in the same period a year earlier. While the narrower loss was partly due to reduced foreign exchange losses and higher interest income, the company still faced difficulties such as weak demand and low average selling prices, which intensified competition. Quarterly revenue dipped by 17% compared to the previous year.
The glove maker foresees ongoing challenges and predicts a “meaningful recovery is likely to take place only sometime in the year 2025.” Kenanga Investment Bank expects Supermax to report a net loss of 5 million ringgit for the fiscal year ending in June, a significant turnaround from its previous forecast of a net profit of 26 million ringgit. The bank attributes their revised forecast to the tough operating environment Supermax is facing, which is anticipated to continue in the coming quarters due to oversupply.
However, there may be a glimmer of hope on the horizon. Kenanga analyst Raymond Choo Ping Khoon believes that the demand-supply balance for gloves could improve in 2026, as additional new capacity is expected to decrease and global glove demand continues to grow by 15% annually, driven by increasing hygiene awareness.
Given Supermax’s disappointing performance in the first half of the fiscal year, Kenanga slightly lowered its target price for the company to 0.84 ringgit from 0.85 ringgit and maintained its underperform rating.
Analyst comment
This news is negative for Supermax Corp. and the market. The company experienced its fifth consecutive quarter of losses, resulting in a drop in share price. The company predicts a meaningful recovery is unlikely until 2025, and Kenanga Investment Bank expects a net loss for the current fiscal year. Although there is potential for improvement in the demand-supply balance in 2026, Supermax’s disappointing performance warrants a lowered target price and an underperform rating.
