By Stella Goh
 

Supermax Corporation Berhad has released its 4^th quarter results on 10th August 2020, with its net profit jumped by a whopping of 27 times to RM399.62 million from RM15.06 million a year ago, marking its highest quarterly earnings to date. While the company’s annual net profit increased from RM123.11 million in FY2019, approximately of 327% to RM525.58 million. For the revenue, it has increased by 147% from RM375.96 million to RM929.12 million.

SUPERMX is also proposing a share dividend payout that entails one (1) treasury shares for every 45 ordinary shares held for FY2020, which is subjected to its proposed bonus issue that announced earlier to be approved at an upcoming extraordinary general meeting on 18August2020. Previously, the company has proposed to distribute bonus shares in proportion of 1:1.

According to SUPERMX, it said the demand for gloves as personal protective equipment has heightened, resulting in a rapid rise of Average Selling Price (ASPs). Currently, SUPERMX orderbook is in an oversold position. However, the Highest Average Selling Prices (ASPs) have not been reflected in this quarter and they are still optimistic that their Own Brand Manufacturing (OBM) cum distribution business will exhibit even healthier performance in coming quarter.

SUPERMX also plans to invest RM1.3 billion in new plants to provide more capacity. In term of capacity expansion, the company has put in place expansion plans of building a total of five gloves manufacturing plants between now until FY2022 with an additional production capacity of 22.25 billion, which making a total of 48.42 billion of gloves by FY2022.

Governments all over the world have increased healthcare spending budgets to contain the effects of the pandemic and they are in preparation for the second or more waves for the coronavirus. At this point of time, the world continues to discover of new strain of viruses and in light of these developments, the company expects demand to remain buoyant in 2021 and beyond. Due to current robust demand, SUPERMX is taking the opportunity to build new relationships with new customers and distributors in anticipation that they will continue with repeat orders post pandemic.

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