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Tuesday, March 13, 2018

Better earnings for rubber goods

Tuesday, 13 Mar 2018

PETALING JAYA: Affin Hwang Capital Research expects the domestic rubber products sector to record better earnings moving forward, mainly as a result of robust rubber glove demand.

The firm has told its clients to buy Supermax Corp Bhd  on compelling valuations and a possible upside earnings surprise.

In its published note, the research house said that the vinyl supply disruption in China would drive long-term demand in the domestic rubber products sector.

“We reaffirm our ‘overweight’ call on the sector, as we do not see the vinyl supply disruption in China as a one-off event, given the introduction of new environmental regulations.

“We believe that the key re-rating catalyst for the sector would be dependent on solid earnings growth delivery.

China introduced winter air pollution measures in the northern region and this has led some production capacity to shut down.


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