Analyst downgrades Supermax to 'Hold', expects losses to persist through FY26
KUALA LUMPUR: Supermax Corp Bhd is expected to remain loss-making up to the end of financial year 2026 (FY26), weighed down by a challenging operating environment and continued start-up losses from its United States (US) glove plant.
CIMB Securities said the demand from US clients is likely to stay subdued in the short term for Supermax, as prior front-loading activities suggest that current inventory levels could last until the second quarter (Q2) of FY26.
Outside the US, the firm anticipates average selling price (ASPs) to remain under pressure as Chinese glove makers increase their presence in non-US markets, intensifying competitive dynamics.
"Although Supermax commenced initial production on the first half of Phase 1 (2.4 billion pieces annually) at its US facility in January , we believe the ramp-up to full commercial production could be slower than expected owing to ongoing production line validation.
"Until the full capacity of Phase 1 (4.8 billion pieces annually) is operational — likely only by the second half of FY26 — we expect US operations to remain in the red, given the lack of scale needed to achieve operating leverage," it said.
Supermax reported a core net loss of RM93.4 million for the nine months of FY25, which is below our expectations.
The wider-than-expected loss in Q3 FY25 was mainly due to weaker sales
demand and the adverse impact of the strengthening of the ringgit against the US dollar.
CIMB Securities has widened its net loss forecasts for FY25 to FY26 to reflect softer sales volumes, more competitive ASPs and a delay in the commercial ramp-up of Supermax's US glove plant.
The firm now projects Supermax to remain loss-making through its FY26 forecast, with a return to profitability only expected in FY27.
As a result, CIMB Securities has lowered its target price to 80 sen from RM1.05 to reflect a more challenging operating outlook.
"Given the near-term headwinds and intensifying competitive landscape, we downgrade Supermax to 'Hold' from 'Buy'," it added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Express
42 minutes ago
- Daily Express
Sabah may stay poor due to GLCs
Published on: Sunday, June 08, 2025 Published on: Sun, Jun 08, 2025 By: Datuk John Lo Text Size: Badly managed GLCs is one of the worst economic problems of Sabah. The GLCs have become a bottomless pit. No matter how much extra revenue the GRS Government can generate or how much more funding it can get from the Federal Government or how much more investments it can attract, Sabahans will remain poor. All these money cannot cover this ever-expanding hole by badly managed GLCs. Advertisement Singapore's GLCs [e.g. SIA, DBS, Capital Land] are big economic boosters, making profits in billions. Sabah's GLCs are big liabilities, losing billions over the years. Sabah's GLCs make outsiders rich, impoverish Sabahans. They practice 'Sabah for NON-Sabhans', NOT 'Sabah for Sabahans'. GRS Government has started the GLC Transformation. The GRS Government has started the GLC transformation because it has realized this bottomless GLC problem. It must be plugged or else Sabah will remain poor always. Advertisement Well known fact that Sabah's GLCs have: [1] Proliferated in number since the mid-1980s. [2] The increase in number has little economic logic or strategy. more for expediencies and political accommodation. Chairman appointments of big GLCs are special reserves for warlords. Senior management jobs for relatives and macai. [3] The number of GLCs has grown to more than 250. The Assistant Minister of Finance has confirmed this number in the press. [4] Big majority of GLCs have in total lost billions over the years, some are still heavily debt ridden, poorly managed and lack governance. [5] The GLCs have incurred huge liabilities for the many past lopsided agreements signed by GLCs and Malayan companies. [6] The GLCs have produced most failed and/or delayed JV projects with Malayan companies. There are 7 or 8 in KK alone as testimonies of the GLCs' failures. One GLC has failed to launch a major tourism project for more than 10 years. Sabah GLCs love Malayan companies, sideline Sabah companies. No love for 'Sabah for Sabahans.' They love 'Sabah for Malayans'. [7] Return on capital and assets are poor, mostly negative! [8]. The non-performing GLCs have not helped to build up Sabah's economy. Instead, they are destroying it. The GRS government, for the first time in Sabah's history, has initiated transformation after many public warnings by Hajiji and Masidi on the unsatisfactory and sad situation in the GLC. Already announced are these big moves. First, AG Brenndon and MOF Assistant Minister have confirmed the formation of the Oversight Committee. This is an important first step. Second, AG Brenndon has confirmed that all agreements to be signed by GLCs must be referred to and vetted by his Chambers before submission to the Cabinet. Knowing Brenndon, he would not tolerate any lopsided agreement at Sabah's expense. Many Sabahans are extremely concerned about the poor performance of GLCs. This is common talk among folks in Sabah. Not in complimentary tone. Reflective of this sentiment, more than 70, 000 viewers have visited the podcast by SABAR on GLCs in the Kopitiam Council's YouTube platform. It is very positive that Hajiji and Masidi have started to solve Sabah's GLC-massive-headache. Likewise, other leaders should consider offering their ideas/solution in the run up of the 2025 election. Better still, include their plan to transform the GLCs in their manifestos. The GLC problems, no doubt very tough, must be resolved because they are bleeding Sabah dry. GLCs dominate every important economic sector in Sabah. Simple logic. GLCs' combined failure to perform in these sectors has inflicted Sabah's overall economy like CANCEROUS CELLS. All Sabahans, especially the vulnerable B40 suffer. The GLCs are depriving future generations of their economic opportunities. Followings are some token samples: [1] GLCs are in control of Sabah's Financial Institutions [SDB, SCC]. [2] GLCs are in effective control of many natural resources: mining/minerals [SMM], timber and FMUs [Innoprise, SOFODA]. [3] GLCs hold many monopolistic rights: Cement [Sabah Cement Industries], Ports [Suria, POIC Sandakan and POIC LD], Water [Jetama]. Fishing landing rights [SAFMA]. [4] GLCs have been granted practically free and extremely prime land, most of them at RM1,000 premium. [Innoprise, SUDC of SEDCO, Suria, SICC, Sabah Energy, TAED.]. [5] GLCs have been granted vast acreage of valuable agriculture land for free or at nominal premium. [Sawit Kinabalu, KPD, Sabah Softwood.] [6] GLCs have been granted cheap and valuable land for industrial park [KKIP, SOGIP, POIC Sandakan and POIC LD, ASEAN Supply Base in Labuan] [7] GLCs have been granted concession rights in oil and gas, river and sea sand [Sabah Energy, Sabah Gas, SMJ Energy, SEDCO]. [8] GLCs are in hotels, resorts and jungle resorts [Innoprise, SEDCO and Sabah Air] [9] GLCs have been granted exclusive JV preference mostly with Malayan companies. Summary: you name it, GLCs are in it. GLCs control it. GLCs are the preferred choice for almost every economic activity in Sabah. GLCs are given priority in any new business, depriving opportunities for Sabahan businessmen. Despite of all the huge advantages, most of them are doing very badly. The GLCs are in competition Sabah's private sector in the most unfair manners. They are killing our Sabahan investors, entrepreneurs, and even small SMEs. Chairmen, Directors, Senior Management would have been sacked in the Private Sector. All business conglomerates would NOT have tolerated the bad governance/management of the board of directors, senior management of Sabah's GLCs. They would have been sacked long time ago. The shareholders would not tolerate such persistent non-performance and abuses. The GLCs can afford to continue with their perennial state of abuses, bad-performances, losses and giving perks away is because Sabahans, you and me, our future generations are paying for their perpetual good lives. Does Sabah need 250 GLCs? How may officers and staff needed by GLCs Pertinent questions. I would not venture to guess. However, one thing is certain, a great number of them are existing to give jobs, perks and political accommodation or favours. Will not surprise if majority of them would not be able to justify their existence in a proper revamp exercise. As can be seen in the list above, badly managed monopolies, special concessions granted by the government, land given for free, duplication, competition against each other are common features among these GLCs. Pertinent question 2. After years and years of losses, the iron rice bowl mentality is as strong as ever. Petronas has reduced 10% of its work force because petroleum prices are dropping. No iron rice bowl in Petronas. A thorough revamp, transformation and rationalization is long overdue. Let the leaders in this election answer this question. Good leaders will give you the right and logical answer. Solve the GLCs Problems, 50% economic Sabah's problems are Solved. Why is this? Because the GLCs are burdening down, big liabilities in almost all the sectors of Sabah's economy. If the GLCs can be transformed to perform, all the sectors that they are in will create an economic boom in Sabah. Imagine: [1] If each GLC, on average, can create 100 jobs, 25,000 Sabahans will have employment. Sabah's unemployed graduates will be over. [2] If each GLC, on average can make RM10m, total will be RM2.5b, RM20m, it will be RM5b. Given all the freebies like land, monopolies, concessions and no capital cost, such profits can be within easy reach. SMJ Energy's profit is already RM250m in 3rd year of existence. KPJ Hospital [Johor SEDCO] makes RM350m a year. [3] Sabah GLCs should emulate KPJ Hospital, expand beyond Sabah or go international. This is possible when there is a proper Board of Directors and good senior management. Hajiji and Masidi have appointed the right people in some GLCs already. Vast improvements in their performance. 3 myths that must be dispelled. First: Sabah does not have the right people to manage the GLCs properly. Not true. Remove the useless ones, good Sabahans can be found. Second: GLCs cannot be turned around. Appointing right chairmen, directors and senior management, the turn-arounds will be possible. Examples: [1] SDB is being revamped. Lim Haw Kuang, former Executive Chairman of Shell in China and Director BNM has been appointed as Executive Chairman. The Board of Directors are credible people. No political interference. RAM has just given SDB top rating! [2] SMJ Energy is performing exceptional well with a highly regarded Board of Directors and well qualified senior management team. Its profit in 2024 is RM250m. [3] Sabah Energy Corporation, Sabah Credit Corporation are being managed professionally. They are doing very well. SEC may become the biggest gas aggregator in Malaysia! SCC has proven that it can do some social financing and be profitable! [4] Hajiji has appointed James Wong as GGM to revamp SEDCO. [5] POIC LD has been turned around with Yong Teck Lee as Chairman and Fredian Gan CEO. It is now undertaking a major expansion that will make POIC LD a marine hub for Sabah. POIC LD is showing the way that it can monetize its landed assets, FZ approval from Federal MOF and its deepest ports in this region. [6] Innoprise has been transformed, vastly improved by forward looking executive chairman Jasnih and a professional team. Thirdly, GLCs can make sizeable profit [in hundreds of millions of RM]. E.g. SMJ Energy. GLCs in plantations, GLCs with monopolies and GLCs give free land have potential to make a lot more. Let's pray Leaders of all Parties will Focus on GLC Transformation. Yes, Sabahans better pray hard that Sabah leaders will focus on transformation of GLCs. Successful GLC transformation will mean prosperity. Failure? Continue poverty. The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]
The Star
an hour ago
- The Star
Secret Russian intelligence document shows deep suspicion of China
NEW YORK: In public, President Vladimir Putin of Russia says his country's growing friendship with China is unshakable – a strategic military and economic collaboration that has entered a golden era. But in the corridors of Lubyanka, the headquarters of Russia's domestic security agency, known as the FSB, a secretive intelligence unit refers to the Chinese as 'the enemy'. This unit, which has not previously been disclosed, has warned that China is a serious threat to Russian security. Its officers say that Beijing is increasingly trying to recruit Russian spies and get its hands on sensitive military technology, at times by luring disaffected Russian scientists. The intelligence officers say that China is spying on the Russian military's operations in Ukraine to learn about Western weapons and warfare. They fear that Chinese academics are laying the groundwork to make claims on Russian territory. And they have warned that Chinese intelligence agents are carrying out espionage in the Arctic using mining firms and university research centres as cover. The threats are laid out in an eight-page internal FSB planning document, obtained by The New York Times, that sets priorities for fending off Chinese espionage. The document is undated, raising the possibility that it is a draft, though it appears from context to have been written in late 2023 or early 2024. Ares Leaks, a cybercrime group, obtained the document but did not say how it did so. That makes definitive authentication impossible, but the Times shared the report with six Western intelligence agencies, all of which assessed it to be authentic. The document gives the most detailed behind-the-scenes view to date of Russian counterintelligence's thinking about China. Since Russia invaded Ukraine in February 2022, Moscow's new bond with Beijing has shifted the global balance of power. The rapidly expanding partnership is one of the most consequential, and opaque, relationships in modern geopolitics. Russia has survived years of Western financial sanctions following the invasion, proving wrong the many politicians and experts who predicted the collapse of the country's economy. That survival is in no small part due to China. China is the largest customer for Russian oil and provides essential computer chips, software and military components. When Western companies fled Russia, Chinese brands stepped in to replace them. The two countries say they want to collaborate in a vast number of areas, including making movies and building a base on the moon. Putin and Xi Jinping, China's leader, are doggedly pursuing what they call a partnership with 'no limits'. But the top-secret FSB memo shows there are, in fact, limits. 'You have the political leadership, and these guys are all for rapprochement with China,' said Andrei Soldatov, an expert on Russia's intelligence services who lives in exile in Britain and who reviewed the document at the request of the Times. 'You have the intelligence and security services, and they are very suspicious.' Putin's spokesperson, Dmitry Peskov, declined to comment. The Chinese Foreign Ministry did not respond to requests for comment on the document. The Russian document describes a 'tense and dynamically developing' intelligence battle in the shadows between the two outwardly friendly nations. Three days before Putin invaded Ukraine in 2022, the FSB approved a new counterintelligence programme called 'Entente-4', the document reveals. The code name, an apparent tongue-in-cheek reference to Moscow's growing friendship with Beijing, belied the initiative's real intent: to prevent Chinese spies from undermining Russian interests. The timing almost certainly was not accidental. Russia was diverting nearly all of its military and spy resources to Ukraine, more than 6,500km from its border with China, and most likely worried that Beijing could try to capitalise on this distraction. Since then, according to the document, the FSB observed China doing just that. Chinese intelligence agents stepped up efforts to recruit Russian officials, experts, journalists and businesspeople close to power in Moscow, the document says. To counter this, the FSB instructed its officers to intercept the 'threat' and 'prevent the transfer of important strategic information to the Chinese'. Officers were ordered to conduct in-person meetings with Russian citizens who work closely with China and warn them that Beijing was trying to take advantage of Russia and obtain advanced scientific research, according to the document. The FSB ordered 'the constant accumulation of information about users' on Chinese messaging app WeChat. That included hacking phones of espionage targets and analysing the data in a special software tool held by a unit of the FSB, the document says. The possible long-term alignment of two authoritarian governments, with a combined population of nearly 1.6 billion people and armed with some 6,000 nuclear warheads, has stoked deep concern in Washington. Some members of the Trump administration believe that, through outreach to Putin, Washington can begin to peel Russia away from China and avoid what Secretary of State Marco Rubio has called 'two nuclear powers aligned against the United States'. 'I'm going to have to un-unite them, and I think I can do that, too,' President Donald Trump said shortly before his election in November. 'I have to un-unite them.' Read one way, the FSB document lends credence to the theory that, with the right approach, Russia can be cleaved away from China. The document describes mistrust and suspicion on both sides of the relationship. China is conducting polygraphs on its agents as soon as they return home, tightening scrutiny of the 20,000 Russian students in China and trying to recruit Russians with Chinese spouses as potential spies, the document says. But another reading of the document leads to the opposite conclusion. The fact that Putin is apparently well aware of the risks of a closer relationship with China and has decided to push ahead anyway could suggest little opportunity for the United States to get Russia to change course. 'Putin believes that he can go much deeper into this Chinese embrace, and it's not risk-free, but it is worth it,' said Alexander Gabuev, the director of the Carnegie Russia Eurasia Centre, who reviewed the document at the request of the Times. 'But we also see there are people within the system who are sceptical of that approach.' Putin has courted Xi for years, in more than 40 personal meetings, and has cemented a far deeper partnership with China since invading Ukraine. The two countries have a natural economic synergy, with Russia being one of the world's largest energy producers and China the world's largest energy consumer. That poses a delicate challenge for Russian counterintelligence agents. The document shows them trying to contain the risks posed by Chinese intelligence without causing 'negative consequences for bilateral relations'. Officers were warned to avoid any public 'mention of the Chinese intelligence services as a potential enemy'. Most likely written for circulation to FSB field offices, the directive offers a rare glimpse into the inner world of one of the most powerful parts of the Russian intelligence establishment: the FSB's Department for Counterintelligence Operations, known as the DKRO. The document was written by the DKRO's 7th Service, which is responsible for countering espionage from China and other parts of Asia. Anxiety about Russia's susceptibility to an increasingly powerful Beijing dominates the memo. But it is unclear how common those worries are across the Russian establishment, beyond the counterintelligence unit. Even allied nations regularly spy on one another. 'To go back to the old adage, there is no such thing as friendly intel services,' said Paul Kolbe, a senior fellow at Harvard's Belfer Center for Science and International Affairs, who served for 25 years in the CIA Directorate of Operations, including in Russia. 'You don't have to scratch very deep in any Russian military or intel official to get deep suspicion of China. In the long run, China is, in spite of the unlimited partnership and how useful they are, also a potential threat.' Soon after Russian troops pushed across the border into Ukraine, officials from Chinese defence firms and institutes tied to Chinese intelligence began flooding into Russia. Their goal, according to the FSB document, was to better understand the war. China has world-class scientists, but its military has not fought a war since a month-long conflict with Vietnam in 1979. The result is anxiety in China about how its military would perform against Western weapons in a conflict over Taiwan or the South China Sea. Chinese intelligence officials are eager to understand Russia's fight against an army backed by the West. 'Of particular interest to Beijing is information about combat methods using drones, modernisation of their software and methods for countering new types of Western weapons,' the FSB document says, adding that Beijing believes the war in Ukraine will become drawn-out. The conflict has revolutionised warfare technology and tactics. China has long lagged behind Russia in its aviation expertise, and the document says that Beijing has made that a priority target. China is targeting military pilots and researchers in aerohydrodynamics, control systems and aeroelasticity. Also being sought out, according to the document, are Russian specialists who worked on the discontinued ekranoplan, a hovercraft-type warship first deployed by the Soviet Union. 'Priority recruitment is given to former employees of aircraft factories and research institutes, as well as current employees who are dissatisfied with the closure of the ekranoplan development programme by the Russian Ministry of Defence or who are experiencing financial difficulties,' the report says. It is not clear from the document whether those recruitment efforts are limited to hiring Russian specialists for Chinese ventures or also extend to recruiting them as spies. The document also shows that Russia is very concerned about how China views the war in Ukraine and is trying to feed Beijing's spies with positive information about Russian operations. And it commands Russian counterintelligence operatives to prepare a report for the Kremlin about any possible changes in Beijing's policy. Western leaders have accused China of providing Russia with essential weapons components and working to conceal it. The FSB document lends support to that claim, stating that Beijing had proposed establishing supply chains to Moscow that circumvent Western sanctions and had offered to participate in the production of drones and other unspecified high-tech military equipment. The document does not say whether those proposals were carried out, though China has supplied Russia with drones. The FSB memo also hints at Chinese interest in the Wagner mercenary group, a Russia-backed paramilitary group that propped up governments in Africa for years and fought alongside Russian troops in Ukraine. 'The Chinese plan to use the experience of Wagner fighters in their own armed forces and private military companies operating in the countries of South-east Asia, Africa and Latin America,' the directive says. The wording of the report does not indicate whether the FSB believes that China wants to recruit former Wagner fighters for its own formations or simply wants to learn from their experience. Russia has long feared encroachment by China along their shared 4,200km border. And Chinese nationalists for years have taken issue with 19th-century treaties in which Russia annexed large portions of land, including modern-day Vladivostok. That issue is now of key concern, with Russia weakened by the war and economic sanctions and less able than ever to push back against Beijing. The FSB report raises concerns that some academics in China have been promoting territorial claims against Russia. China is searching for traces of 'ancient Chinese peoples' in the Russian Far East, possibly to influence local opinion that is favourable to Chinese claims, the document says. In 2023, China published an official map that included historical Chinese names for cities and areas within Russia. The FSB ordered officers to expose such 'revanchist' activities, as well as attempts by China to use Russian scientists and archival funds for research aimed at attaching a historical affiliation to borderlands. 'Conduct preventative work with respect to Russian citizens involved in the said activities,' the memo orders. 'Restrict entry into our country for foreigners as a measure of influence.' The concerns about China expanding its reach are not limited to Russia's Far East borderlands. Central Asian countries answered to Moscow during the Soviet era. Today, the FSB reports, Beijing has developed a 'new strategy' to promote Chinese soft power in the region. China began rolling out that strategy in Uzbekistan, according to the document. The details of the strategy are not included in the document other than to say it involves humanitarian exchange. Uzbekistan and neighbouring countries are important to Putin, who sees restoring the Soviet sphere of influence as part of his legacy. The report also highlights China's interest in Russia's vast territory in the Arctic and the Northern Sea Route, which hugs Russia's northern coast. Historically, those waters have been too icy for reliable shipping, but they are expected become increasingly busy because of climate change. The route slashes shipping time between Asia and Europe. Developing that route would make it easier for China to sell its goods. Russia historically tried to maintain strict control over Chinese activity in the Arctic. But Beijing believes that Western sanctions will force Russia to turn to China to maintain its 'aging Arctic infrastructure', according to the FSB document. Already, Russian gas giant Novatek has relied on China to salvage its Arctic liquefied natural gas project, after previously using the American oil services firm Baker Hughes. The FSB asserts that Chinese spies are active in the Arctic, as well. The report says Chinese intelligence is trying to obtain information about Russia's development of the Arctic, using institutions of higher education and mining companies in particular. But despite all of these vulnerabilities, the FSB report makes clear that jeopardising the support of China would be worse. The document squarely warns officers that they must receive approval from the highest echelons of the Russian security establishment before taking any sensitive action at all. - The New York Times
New Straits Times
2 hours ago
- New Straits Times
Gold likely to trade range-bound next week
KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives are likely to trade range-bound next week, said an analyst. SPI Asset Management managing partner Stephen Innes said the bullion is likely to stay within its current trading band of US$3,330 to US$3,390 per troy ounce. "For the week just ended, gold has been trading flat throughout the session, reflecting the broader indecision seen in currency markets. Lately, the metal has been moving almost in lockstep but inversely with the US dollar. "Therefore, monitor the dollar closely as it is currently the main influence on gold prices," he told Bernama. On a Friday-to-Friday basis, the spot month June 2025 contract increased to US$3,371.80 per troy ounce from US$3,312.20 per troy ounce, and the July 2025 contract went up to US$3,380.30 per troy ounce from US$3,325.90 per troy ounce. The August 2025, September and October 2025 contracts all strengthened to US$3,393.80 per troy ounce from US$3,325.90 per troy ounce. Trading volume dropped to 241 lots from 256 lots recorded in the preceding week, while open interest reduced to 122 contracts from 139 contracts. According to the London Bullion Market Association's afternoon fix on June 6, physical gold was priced at US$3,374.60 per troy ounce.
