Friday 29 Mar 2024
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KUALA LUMPUR (Sept 6): Shares of Supermax Corporation Bhd may be in an oversold position following the selldown over the last couple of days after the glove maker announced its quarterly results.

Hong Leong Investment Bank's head of retail research Loui Low said Supermax may have been oversold as technical indicators show that the support level for the stock is seen at RM3 to RM3.12.

Supermax was down eight sen or 2.5% at RM3.13 as at 3.20pm with about 6.1 million shares traded. This is higher than the stock's 30-day average volume of about 4.7 million shares.

The group's net profit for the fourth quarter ended June 30, 2018 grew 84.2% to RM9.8 million, from RM5.3 million a year earlier. Despite this, its share price has fallen by some 20% since last Wednesday when it closed at RM3.92.

While there were some downgrades by analysts covering the company after the results were announced, the average 12-month target price is RM3.86, indicating a potential return of 22.9%.

TA Securities analyst Tan Kam Meng and Affin Hwang Investment Bank Bhd analyst Ng Chi Hoong have a more bullish view on Supermax with a 12-month target price of RM4.75 and RM4.60 respectively.

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