[Supermax (7106) is a promising glove company, although the industrial trend has yet to come]

Supermax Corporation Berhad was founded in 1987. The company specializes in the production of Natural Rubber and Nitrile Latex gloves for medical use. Supermax gloves are exported to more than 160 countries around the world, such as the United States, European Union, the Middle East, Asia and the South Pacific. Supermax entered the field of contact lenses in 2014 and established Supervision Optimax Sdn. Bhd to sell products to over 65 countries in worldwide.

48% of the company's turnover comes from the United States, which is also the world's largest gloves consumption country. And gloves are disposable in the medical and other industries, hence the demand of the gloves will continue to increase. Malaysia has been a global leader in the rubber gloves industry for the past two decades, occupying more than 60% of the global market share compared to its closest competitor Thailand (21%).

Malaysia's geographical is having advantage on raw materials - rubber and technical knowledge, and this has helped the company achieve great success. Beside the gloves, contact lenses have the potential of the global market, and Supermax is optimistic about future business opportunity. However, contact lens is different from the glove industry, and the barriers is high to enter the contact lens business, which requires high professional technical knowledge and strong financial strength.

Ad of now, Supermax has obtained the necessary permits and approvals to export contact lenses to several global markets, including the US and Japan, which are currently the largest contact lens markets. In the past 12 months, the company has launched publicity and marketing activities to build brand awareness for its contact lens brand AVEO.

The global glove market is still vibrant due to high healthcare awareness and the demand for gloves in the medical and other industries. Glove demand continues to grow at an annual rate of 8-10%. This is a good sign for the company and to the glove industry. The construction of Supermax's 12th factory has begun, which will further increase the company's production capacity after completion. The current plant utilization rate is 75%. The completion of the 12th plant will be increased to 90%, and the efficiency will continue to increase.

The company had also purchased the land in Meru to expand another 3 factories in the future. In the next five years, the company is expected to increase production by 60% to 44bil units of gloves annually.

Supermax has met the strict requirements of the Japan Medical Device Administration and successfully obtained a product license to export contact lenses to Japan, the world's second largest contact lens market, in June 2018.

Supermax launched its own contact lens (Aveo) in Malaysia in October 2018. Supermax will continue to obtain product licenses and approvals, expand its product range to include other types of lenses, such as toric and colored lenses, and increase the market penetration of its global products.

Invisible eyes currently contributed very small in turnover and profit. The current one-year production capacity is 70mil units and the plant utilization rate is about 60%. The company plans to enter colored contact lenses, and specialize in producing high-quality and high-tech products. We strongly believe the potential of the contact lens business in future is great. As of now, the global market for contact lenses is about 10bil USD, and the United States is already having half of the market share of 50%. Supermax's main markets are from United States, Japan and Asia, and recently obtained permits exporting to China. Supermax plan to use RM 15mil in advertising and marketing next year to build the brand.

Supermax stock price has dropped from RM 4 to RM 1.36 because of the Bonus Issue, and stock price has been adjusted. The company has planned to continue business expansion and in the next 3-5 years, the company's output will increase from 24bil units of gloves per annual to 40bil unitsof gloves per annual. The current stock price is only a short-term fluctuation, investors should focus on the long-term.

At the AGM meeting, the chairman of the company further strengthen investor confidence.

Chairman mentioned into AGM:
Supermax specializes in high-quality and high-tech products. We promise all shareholders today that we will be one of the top companies in the next 10 years.

As for contact lenses, we are not gaining revenue in the short term, but confidence to grow in next 10 years. This business has great potential, and the profit will be better than gloves!