KUALA LUMPUR (Nov 18): Analysts see a challenging year ahead for Supermax Corp Bhd amid US glove import ban, lower average selling price (ASP), and the impact of prosperity tax. “On the back of our dire outlook for the sector, we drastically scale back our volume and ASP assumptions for Supermax. While maintaining a "hold" call on Supermax, he revised down its TP to RM1.70 from RM2.75. KAF Research analyst Nabil Zainoodin, who maintained a "sell" call and target price of RM1 on Supermax, also expects weaker earnings ahead for the company. However, he revised Supermax earnings forecasts for FY22 upward by 14% as he assumed higher overall utilisation for FY22 as 1QFY22 utilisation rate was above his expectation.

Source: The Edge Markets November 18, 2021 15:35 UTC