SUPERMAX Corporation Bhd has posted a 1,313% jump in net profit to RM1.022 bil for its 3Q FY6/2021 (3Q FY6/2020: RM72.35 mil) on the back of a 333% revenue growth to RM1.94 bil (3Q FY6/2020: RM447.25 mil).
For the entire nine-month period, the group’s net profit climbed almost 2,190% to RM2.91 bil (9M FY6/2020: RM127.33 mil) while its revenue edged up 340% to RM5.29 bil (9M FY6/2020: RM1.2 bil).
Amid its stellar performance, Supermax declared a special dividend of 13 sen/share for the current financial year ending June 30, 2021. To-date, the glove maker has declared dividends of 16.8 sen in respect of its current financial year.
Meanwhile, the group’s cash and bank balances increased to RM3.99 bil as of end-March from RM3.7 bil as of end-December last year.
Supermax said it would have recorded an even stronger performance it not for the temporary closure which led to loss of production output of its Meru plants in February to facilitate complete sanitisation and deep-cleansing exercise following the detection of several COVID-19 cases among its foreign workforce.
“The donation or contribution of RM75 mil towards the Malaysian Government’s efforts in fighting the COVID-19 pandemic was also taken up in the current quarter,” the glove maker pointed out in a media release.
In terms of capacity expansion in Malaysia, Supermax said it had completed commissioning of its remaining production lines in Block B of Plant #12 during the preceding quarter, adding 2.2 billion gloves to its annual installed capacity.
“We are seeing a full quarter contribution in the quarter ended March 2021 and going forward,” Supermax added.
“We are currently building five glove manufacturing plants concurrently and scheduled for completion progressively between now and year 2022.”
The new plants will add 22.25 billion new capacity, thus lifting the group’s total capacity to 48.42 billion gloves by end-2022. The group would have invested total capital expenditure of RM1.39 bil for the new plants.
With more new players jumping into the glove bandwagon in view of demand surge and with current public listed companies in China, Malaysia and in Thailand ramping up production, Supermax acknowledged that the global glove prices have begun to decrease.
“They have since dropped by between 15% and 25%. Currently, the spot market prices are lower than the contracted prices,” Supermax remarked.
At the close of today’s trading, Supermax was down 25 sen or 4.3% to RM5.57 with 21.25 million shares traded, thus valuing the company at RM15.15 bil. – May 5, 2021
