This article first appeared in The Edge Financial Daily on February 21, 2018

Supermax Corp Bhd (-ve)

SHARES in Supermax Corp Bhd (fundamental: 1/3, valuation: 1.4/3), which triggered our momentum algorithm yesterday, closed six sen or 2.5% higher at RM2.46. It saw 11.53 million shares traded, near five times its 200-day average volume of 2.4 million shares.

Supermax’s net profit rose 59% year-on-year (y-o-y) to RM35.9 million in the second quarter ended Dec 31, 2017 (2QFY18) from RM22.57 million, driven by stronger revenue, higher production capacity and improved operational efficiency.

Quarterly revenue grew 42% y-o-y to RM335.91 million from RM236.74 million, as it enjoyed stronger demand for gloves and achieved higher output.

The glove maker declared a single-tier interim dividend of three sen per share in respect of FY18, payable on March 28.

For the first six months of FY18, the group’s net profit jumped 52% y-o-y to RM63.8 million from RM42.11 million, as revenue rose 28% to RM647.94 million from RM505.74 million.