KUALA LUMPUR: Glove maker Supermax Corp Bhd beat estimates for the full year ended June 30 and signalled that earnings growth will remain strong in the coming quarter on the back of rising selling prices.
"The highest average selling prices (ASPs) have not been reflected this current quarter and we are optimistic that our own brand manufacturing (OBM) cum distribution business model will exhibit even healthier performance in the coming quarters," the company said in a statement today.
Net profit soared to RM399mil in the last quarter ended June 30 from RM15mil a year ago. Supermax made a net profit of RM71mil in the three month ended March 31.
For the full year, the company made a net profit of RM525.6mil, or 40.22 sen a share, on sales of RM2,13bil.
"We are seeing the emergence of new consumers and new consumption not previously seen before prior to Covid-19," it said, "Currently, the Group is in an oversold position."
The surge in demand, Supermax said, has resulted in a rapid rise of average selling prices since March 2020.
"Governments all over the world have increased healthcare spending budgets to contain the effects of the pandemic and in preparation of a possible second or more waves. At this point in time, the world continues to discover of new strain of viruses and in light of these developments, the Group expects demand to remain buoyant in 2021 and beyond," it said.
Supermax currently export 55% of production under its own brands via its own distribution centres and 40% through independent distributors.
The remaining 5% is for OEM production.
"Due to the current robust demand, we are taking the opportunity to build new relationships with new customers and distributors in anticipation that they will continue with repeat orders post pandemic," it said.
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