7106 SUPERMX SUPERMAX CORPORATION BHD
Notice of Resale/Cancellation of Treasury Shares - Immediate Announcement

Date of Transaction : 21/12/2009
Total No. of Treasury Shares Sold : 2,100,000 shares
Minimum Price Paid For Each Share Sold : RM 4.100
Maximum Price Paid For Each Share Sold : RM 4.160
Total Amount Received For Treasury Shares Sold : RM 8,636,670.00
Total No. of Treasury Shares Cancelled : 0 shares
Cumulative Net Outstanding Treasury Shares As At To-Date : 3,460,000 shares
Adjusted Issued Capital After Cancellation/Resale : 0

Supermax sold off the treasury shares because they don't have confidence and expecting to buy back at lower price?

7106 SUPERMX SUPERMAX CORPORATION BHD
Notice of Resale/Cancellation of Treasury Shares - Immediate Announcement

Date of Transaction : 28/12/2009
Total No. of Treasury Shares Sold : 3,461,000 shares
Minimum Price Paid For Each Share Sold : RM 4.100
Maximum Price Paid For Each Share Sold : RM 4.120
Total Amount Received For Treasury Shares Sold : RM 14,191,138.30
Total No. of Treasury Shares Cancelled : 0 shares
Cumulative Net Outstanding Treasury Shares As At To-Date : 0 shares
Adjusted Issued Capital After Cancellation/Resale : 0
Date Lodged With Registrar of Company :
Lodged By :

Remarks:

tabung haji and foreign fund are selling supermax.

• In great shape; maintain OVERWEIGHT. The rubber glove sector had a
spectacular year in 2009, raising the question of further upside from here on. We
believe that prospects remain favourable and demand growth is sustainable. This
underpins our decision to retain our OVERWEIGHT stance on the sector. Factors
that could extend the re-rating include the continuing uptick in demand from the
healthcare industry, ongoing capacity expansion and above-market earnings growth
driven by major capacity expansion by many of the glove companies. Adventa and
Supermax remain our top picks.
• Outperform and higher targets for all stocks. We retain our earnings forecasts
and Outperform recommendations for all the glove stocks under our coverage. In
light of the positive industry outlook and superior earnings growth prospects, we
now value Top Glove at a 10% premium over our target market P/E of 15x instead
of parity. Our target prices for the remaining glove companies rise in tandem, except
for Adventa and Supermax for which we reduced our discount relative to Top Glove
by 10% in view of their exposure to the OBM segment and high liquidity. This raises
their target prices by about 25%.
• 2009 was a great year. 2009 was an excellent year for Malaysian rubber glove
manufacturers. Customers’ order cycle returned to normal, latex prices came down
from record levels, energy prices also fell, the US$ strengthened and to top it off,
H1N1 broke about in early 2Q, leading to a rubber glove shortage which
manufacturers believe will continue well into 2010.
• Strong performance but still undervalued. Rubber glove companies
outperformed the KLCI in 2009, surging 94-540% compared to a 45% gain for the
KLCI. Despite the strong performance, their P/E ratings remain at a discount to the
market instead of the premium that they historically traded at. The sector now
stands at an average FY10 P/E of 9.4x or just half of the peak during end-06/early-
07. We believe that the rubber glove companies are still undervalued and offer
tremendous earnings upside due to their expansion programmes.
• Demand to remain strong... Demand for rubber gloves is expected to be strong
over the next few years. Malaysian glovemakers predominantly manufacture
examination and medical-grade gloves which make up on average 90% of their
output. We believe demand will not only be resilient but will continue to grow along
with hygiene awareness, health regulations and population size.
• …, underpinning major expansion plans. Malaysian glove manufacturers will be
expanding their capacity in a big way over the next few years. Supermax, Latexx
and Top Glove have even brought forward their plans. Over the next two years,
each of the industry giants will be adding annual capacity of 3bn-7bn pieces (17-
97% growth) to capture a bigger slice of the expanding market.

Research done by CIMB

After so much of gained and top the gainers list yesterdays, rubber glove counters could be in top losers list today.