KUALA LUMPUR (Aug 27): The near-term outlook for Supermax Corporation Bhd (KL:SUPERMX) remains difficult with little upside, analysts said after another disappointing year.

Despite some improvement, net loss for the financial year ended June 30, 2025 (FY2025) was still larger than expected, and latest consensus estimates point to the glove manufacturer staying in the red in the next 12 months as well.

Sales could improve in FY2026 as “customers begin restocking,” said TA Securities. However, average selling prices are likely to remain depressed due to persistent glut, the house said.

Shares of Supermax have already fallen more than 50% so far this year, a decline that has wiped out nearly RM2 billion from its market value, as the company grappled with oversupply and weakened demand.

Chinese rivals have been setting up shop in Southeast Asia to dodge US tariffs, while providing steep discounts for their products in non-American markets. Supermax, meanwhile, is establishing a production facility in Texas to cater to the American market.

Supermax was largely steady on Wednesday, post-results, at 49 sen. The stock now has four “hold”, one “sell” and no “buy” calls. The average target price is 52 sen, according to Bloomberg.

“We foresee limited near-term upside amid prolonged earnings headwinds and intensifying competition, particularly from Chinese peers,” CIMB Securities said. “In our view, investors should remain on the sidelines until there is clearer visibility.”

Supermax could continue to make losses until FY2027, before a turnaround in FY2028 due to start-up costs from the new US facility, while any “operating leverage” will take time to materialise, the house added.

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