KUALA LUMPUR (April 18): Supermax Corp Bhd continued its climb upwards today, gaining 7 sen or 2.6% before the noon break to trade at RM2.76, after analysts highlighted the group’s strong earnings prospects and downplayed the recent political noise.

The counter was the ninth top gainer on the stock exchange as at 2.12pm, having seen 4.93 million shares crossed.

The rubber glove maker is currently trading at 20 times its earnings, with a market capitalisation of RM1.81 billion.

Analysts told The Edge Financial Daily yesterday that investors should look at the group’s earnings, which are expected to remain strong despite the political noise surrounding the stock.

“The [glove] sector is still showing strong earnings growth and Supermax’s valuation is still trading healthily at about 19 times, although it is still behind its peers,” an analyst was reported as saying.

Comparatively, the sector’s average stands at about 22 times. Other glovemakers such as Kossan Rubber Industries Bhd and Hartalega Holdings Bhd were down in early trade today.

Over the weekend, Supermax's former group managing director Datuk Seri Stanley Thai held a press conference to apologise to the prime minister for his involvement in the Malaysian politics. 

The group’s chairman Tan Sri Rafidah Aziz subsequently announced her resignation two days later, citing “personal reason”.

The group added that Rafidah’s resignation would not affect its day-to-day operations, and that its board would identify a suitable candidate for appointment as its new chairman.