United States

Analyst Research Report Snapshot


Result Note – Supermax (BUY, upgrade) - 1HFY12 net profit of RM58m within expectations




Affin Hwang Investment Bank Bhd


09 Oct 2012





Companies referenced:


Available for Immediate Download

1HFY12 net profit of RM58m within expectations Supermax’s 1HFY12 revenue of RM480.6m (+0.3% yoy) was below our expectations, mainly due to lower-than-expected ASPs from lower latex costs. Average latex price in 1HFY12 declined sharply by -26.1% yoy, on the back of weaker global demand for natural rubber. However, the lower latex costs also helped lift 1HFY12 EBIT margin by +3.2%-points to 11%, offsetting: 1) lower contribution from associates, and; 2) a higher effective tax rate of 9.3% vs. 5% in 1HFY11. Consequently, despite flat revenue growth, 1HFY12 core net profit rose by +13.6% yoy to RM58m, accounting for 45% and 44% of our and consensus full year net profit estimates. We deem the results to be within expectations. We expect stronger earnings in 2HFY12 as Supermax benefits from time lags in passing on cost savings from lower latex costs.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.