1. Technically, Supermx starts to reverse downtrend, with price moving up supported by increasing in total volume.  MACD and Force index also showing good signal. Price will move higher once RM2.2 is able to break convincingly with high volume.

2. Strengthening of USD will lead to higher revenue and higher EPS.

3. Full commisioning of Plant 10&11 will lead to 17% increase in production volume.

4. Steep 40% discount in term of valuation to sector average.

5. Decent yield of 2.8% which is 30% higher than peers.

6. Potential recurring income from contact len manufacturing.

7. Almost hit buttom from RM3.56 to current price RM2.16 (drop of 40%) with potential recovery play.

8. Last few quarter EPS drop due to unfortunate events like temporary shut down of existing plan, delay in comissioning of new production line, high tax charges and etc.

9. Based on average EPS of 22sen by analyst and at PE13 (stock 5 year mean), TP is RM2.86. (33% upside from current RM2.16).

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