Thursday, April 1, 2010

Supermax rises, to benefit from higher US exports

KUALA LUMPUR: Shares of Supermax Corp Bhd rose on Thursday, April 1 as the glove maker expects to benefit from the exports of medical examination gloves to the US.

At 2.50pm, it was up 12 sen to RM6.90 with 1.18 million shares done. The FBM KLCI was up 9.45 points to 1,330.02. Turnover was 450 million shares valued at RM672 million.

Supermax executive chairman and managing director Datuk Seri Stanley Thai said the company was expected to reap the immediate fruits from the US Healthcare Reform Bill. The glove maker is set to increase its export of medical examination gloves to the US market by 5% to 7% in FY10.

Its unit Supermax USA is poised to benefit from the recently announced US Healthcare Reform Bill where 32 million uninsured Americans will now be covered and be able to seek more regular treatment and routine health checks.

For FY09 ended Dec 31, the company's total export to the US market was about 42%.

"We should be able to capitalise on demand uptake estimated at about 10% to 12% per annum or about between RM35 million and RM40 million in total sales revenue," Thai said in a statement on Wednesday.

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