Snippets
Supermax seeks nod for share buyback
 09 Oct 2017 16:58
Glovemaker Supermax Corp Bhd is seeking shareholders’ approval for the proposed renewal of the existing shareholders’ mandate for Supermax to buy back its own shares on Bursa Malaysia of up to 10% of the company’s issued share capital.

In July, Supermax repurchased 2.5 million shares from the open market at an average price of RM1.93. The purchase increased the number of treasury shares to 15.2 million.

In financial year ended June 2017 (FY17), the company recorded a net profit of RM70.2 mil on the back of a turnover of RM1.13 bil. There was no comparison against the previous financial year as FY16 covers a period of 18 months from January 2015 until June 2016, following the change of year-end from December to June.

According to MIDF Research, the results were below expectations as it only accounted for 86% of its earnings forecasts for FY17.

Supermax reported that there was some margin squeeze. This was due to rising raw material prices and pre-operating costs incurred on its start-up projects overseas.