KUALA LUMPUR (Oct 19): Shares of Supermax Corporation Bhd (Supermax) rose 1.44% this morning after Hong Leong IB Research said Supermax and that at RM2.08, Supermax’s valuations remain undemanding at forward 11.5x P/E (45.8% below its peers’ 21.2x) and 1.44x P/B (64.8% discounts against peers’ 4.1x).

At 9.34am, Supermax rose 3 sen to RM2.11 with 364,600 shares traded.

In a note today, the research house said it believed such steep valuations have priced in most of the negative and provided sufficient margin of safety and cushion further sharp share price decline, supported by grossly oversold daily indicators and management’s active share buyback program (Supermax bought back about 5.8 million shares year-to-date against 2.1 million shares in 2014 and 1 million shares in 2013 since Apr).

“We are positive of a resumption of uptrend following its downtrend line breakout (on Sept 30) and a sustainable closing above 200-d SMA will spur greater upside towards RM2.17, RRM2.3 and our long term objective of RM2.39. Key supports are RM1.93-2.00. Cut loss at RM1.90,” it said.