Supermax jumps 15pct to highest since Nov 2025

Supermax Corporation Bhd experienced a surge in its shares on Thursday, reaching a nine-month high following its return to quarterly profitability. The stock opened at 34.5 sen, climbing 1.47% from Wednesday's close of 34 sen. By the end of the trading day, Supermax's shares surged 14.71%, closing at 39 sen, its highest level since November 24, 2025.

The company's market capitalisation increased by approximately RM162 million, raising it to around RM1.2 billion. Trading activity was brisk, with 27.36 million shares exchanged, making Supermax the fourth most actively traded stock on Bursa Malaysia.

This two-day rally added RM162 million to Supermax's market capitalisation, taking it from RM1.04 billion at Tuesday's close to RM1.2 billion at a closing price of 37 sen. Year-to-date, the stock has climbed 3.5 sen, or 10.45%, from 33.5 sen to 37 sen. The renewed interest in Supermax stems from its return to the black in the fourth quarter ended June 30, 2026 (Q4 FY26), where the company posted a net profit of RM80.3 million, reversing a net loss of RM51.6 million in the same quarter the previous year.

Quarterly revenue grew 42.5% to RM217 million, driven by higher average selling prices and stronger demand. Despite this profit, Supermax remains loss-making for the full financial year, with a net loss of RM153.9 million, compared to a net loss of RM145 million in the previous year.

RHB Research maintained a cautious outlook on Supermax, assigning a neutral rating with a target price of 34 sen. The firm cited a low quality of the earnings beat, attributing it to internal transfers of manufacturing revenue rather than sales to end customers. Additionally, Eddy Do, an analyst at RHB Research, estimated Supermax's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter to be RM66.6 million and a core net profit of RM33.7 million after accounting for deferred tax credits and unrealised forex gains.

While this beat expectations and reduced the FY26 loss to RM71.7 million, the research firm viewed it as a low-quality beat.

CIMB Securities expects Supermax to remain loss-making in FY27 and FY28, primarily due to its US operations having a higher cost base compared to its Malaysian peers. The normalisation of key input prices following the easing of US-Iran tensions since late April 2026 has pushed glove average selling prices back to pre-conflict levels, currently around US$20–21 per 1,000 pieces.

As a result, customers may delay purchases in anticipation of further price declines, leading to weaker order flows in the coming quarters. The firm reiterated its "Reduce" recommendation while lowering its target price to 27 sen from 28 sen, based on a constant 0.2 times the current year's price-to-book value, anticipating continued losses for the company.