KUALA LUMPUR (Feb 25): Supermax Corporation Bhd (KL:SUPERMX) is expected to remain in the red as the glove manufacturer grapples with high costs and supply glut, analysts said.
Net loss for the first half ended Dec 31, 2025 (1HFY2026) reported on Tuesday has already exceeded the consensus’ full-year estimates, sending its share price lower while research houses scrambled to revise their already bearish projections.
The company will be making losses for at least another two fiscal years, mainly because its US operations carry structurally higher operating costs, said TA Securities in a note. The cost of production in the US is at least twice higher than in Malaysia, the house noted.
Shares of Supermax slipped on Wednesday, down one sen or over 5% to 28 sen, closing in on their record lows.
The stock has lost nearly 15% since the start of 2026, adding to last year’s 70% decline amid the deepening losses and as the ringgit appreciated, pressuring its export receipts mostly quoted in the greenback.
Post-results, there are three ‘sell’, one ‘hold’ and one ‘trading buy’ calls. The consensus target price is 29 sen, based on the average of five analysts tracked by Bloomberg.
Supermax is also facing troubles in passing on cost to its customers amid a weakening US dollar at a time when the industry is seeing massive inventory surplus that is likely to persist following the commissioning of Chinese manufacturers’ new overseas manufacturing plants, CIMB Securities said.
The industry is grappling with a massive supply glut as rivals from China set up shop and ramp up their production in other Southeast Asian countries to dodge US tariffs. A deluge of Chinese-made gloves in non-American markets have also added to the pressure faced by Malaysian manufacturers.
“We anticipate global demand-supply dynamics to balance only in 2027,” CIMB Securities added.