OSK Research upgrades Supermax, TP RM10

KUALA LUMPUR: OSK Research upgraded its FY10 earnings for Supermax Corp Bhd by 15% in line with the company’s solid performance, strong rubber glove demand and management’s internal net profit target of RM168 million.

"Maintain Buy with higher target price of RM10.00 from RM7.94 previously," said the research house on Monday, Feb 22.

It said Supermax's FY09 results were above expectations, mainly boosted by higher selling prices of gloves and persistently strong demand from the Latin American markets, especially Brazil.

Although the 4QFY09 numbers took a hit from a one-off interest expense of RM5.4m, Supermax’s net profit still sprang up by 10.0% q-o-q.

"We have upgraded our FY10 earnings by 15% in line with the company’s solid performance, strong rubber glove demand and management’s internal net profit target of RM168m. Maintain Buy with higher target price of RM10.00 from RM7.94 previously," it said.