Rubber gloves manufacturer, Supermax Corporation Bhd, is due for re-rating when latex price peaks in May at the end of the winter season for rubber trees, says OSK Research.

Currently, rubber trees are shedding leaves and latex output has dwindled, it said in a research note today.

OSK said it was maintaining a buy call on the company's shares, with the target price RM7.84 unchanged despite a lower quarter-on-quarter net profit posted in its 2010 financial year owing to spiralling latex price and unfavourable foreign exchange.

Supermax's net profit was lower by 14. 1 per cent quarter-on-quarter to RM32.7 million while revenue was flat at RM232.7 million even after imputing higher selling prices for gloves.

Quarter-on-quarter, sales volume was quite consistent if not slightly lower because we believe its customers would have started locking in orders before year-end as they would anticipated latex price to trend higher in the frist hfal of this year, it added. -- Bernama