KUALA LUMPUR (Nov 2): Supermax Corp Bhd shares rose 6.48% this morning after its net profit rose 28.8% to RM35.94 million in the first quarter ended Sept 30, 2018, from RM27.9 million a year ago, on higher sales from additional production output, improved operational efficiency and a gain of RM6.5 million from an insurance claim.

At 9.03am, Supermax rose 21 sen to RM3.45 with 1,40 million shares done.

Quarterly revenue climbed 17.6% to RM367.05 million, from RM312.02 million a year ago, due to capacity expansion from the

group’s two newest plants and increase in global sales of its natural rubber and nitrile gloves.

Meanwhile, CIMB IB Research maintained its “Add” rating on Supermax Corp Bhd at RM3.24 with a higher target price of RM4.47 (from RM3.84) and said Supermax’s 1QFY6/19 net profit of RM29.4 million (+5.5% y-o-y & more than 100% q-o-q) was inline at 23.2% of house full-year estimate (22.8% of Bloomberg consensus).

In a note Nov 1, the research house said it expects Supermax to record stronger quarters ahead, backed by: i) new capacity from Block G (1.4 billion pieces p.a.), and ii) higher cost efficiencies.

“Maintain Add with a higher target price of RM4.47 (18.3x CY20F) as we roll over to end-CY19F,” it said.