KUALA LUMPUR (Aug 27): Supermax Corp Bhd (KL:SUPERMX) climbed to an eight-month high on Thursday as investors cheered the glove maker’s turnaround in the recently-ended quarter.
Analysts, however, remained mostly bearish as the company racked up larger-than-expected net loss in the 12 months ended June 30, 2026 (FY2026) and flagged a bleak outlook as prices of its products may moderate in the coming quarters.
“The average selling price is expected to trend lower in the coming months after peaking in May, as glove prices normalise in line with softer raw material costs,” Kenanga Investment Bank said and maintained the stock on an 'underperform' call.
Supermax rose as much as 5.5 sen, or nearly 18%, to 36.5 sen, its highest level since December 2025. The stock ended the day at 35 sen after nearly 50 million shares changed hands, making it one of the most actively traded counters on Bursa Malaysia.
Shares of Supermax have been highly volatile this year, whipsawed by geopolitical conflict in the Middle East that triggered speculative rally and strengthening ringgit that eroded export receipts. The company’s market capitalisation stood at about RM1.14 billion based on the last price.
Bloomberg-tracked analysts remained bearish on the counter, with no 'buy', two 'hold', and three 'sell' recommendations out of the five research houses. The average target price stood at 29 sen.
CIMB Securities, which lowered its target price to 27 sen and maintained its “reduce” rating, expects Supermax to remain loss-making in the upcoming fiscal years mainly due to structurally-high cost at its US operations.
Further, easing selling prices of gloves could prompt customers to delay purchases in anticipation of further price declines, potentially weighing on order flows in the coming quarters, the house warned.