Latest news with #Supermax
Yahoo
28-05-2025
- Business
- Yahoo
Jinhui Shipping and Transportation Ltd (LTS:0JOD) Q1 2025 Earnings Call Highlights: Strong ...
Release Date: May 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jinhui Shipping and Transportation Ltd (LTS:0JOD) reported a significant revenue increase of 41% compared to the previous quarter. Net profit for Q1 2025 increased sixfold, showcasing strong financial performance. The company successfully concluded a long-standing legal proceeding, resulting in a settlement income of $20.2 million. The fleet expanded to 26 vessels, enhancing the company's operational capacity. The balance sheet remains healthy with a low gearing ratio of 16%, indicating strong financial stability. Shipping-related expenses increased to $21.6 million, primarily due to higher payments for chartered vessels. The daily running cost of owned vessels rose from $4,830 to $5,375, attributed to fleet expansion and initial costs. Time charter equivalent rates for Capesize, Panamax, and Ultramax fleets showed a slight decrease compared to previous periods. The market environment in 2025 is filled with uncertainty, including geopolitical tensions and potential US tariffs affecting operations. No new long-term contracts were locked in during the quarter due to market volatility, impacting future revenue visibility. Warning! GuruFocus has detected 5 Warning Signs with LTS:0JOD. Q: Can you provide more details on the $20 million settlement income received from the legal proceedings with Parco Shipping PTE Limited? A: The settlement income of $20.2 million was received as a result of legal proceedings related to the non-performance of a charter party with Parco Shipping PTE Limited. This matter has been ongoing for years, and we are pleased to announce that it has reached a final conclusion. We plan to set aside this amount for potential opportunities to renew our vessels, focusing on the Ultramax segment, which remains our core strength. (Unidentified_1) Q: How does the company plan to handle the current volatile market conditions and geopolitical uncertainties? A: The geopolitical situation remains fluid, with uncertainties such as US tariffs and potential penalties on Chinese-built vessels. We aim to manage our balance sheet prudently and maintain a young fleet. We will continue to seek opportunities to maximize revenue and lock in earnings visibility through longer-term charters. However, given the current volatility, it is challenging to provide specific future plans. (Unidentified_1) Q: What is the company's outlook on the shipping rates for the Ultramax, Panamax, and Supermax sectors? A: Our focus remains on the Ultramax sector, which we believe is the most defensive. While we hope for stability in Supermax rates around $12,000 per day, shipping is inherently volatile, and we cannot predict future rates with certainty. We will continue to react to market conditions and make decisions based on opportunities that arise. (Unidentified_1) Q: Are there any plans for new long-term contracts or fleet acquisitions in the near future? A: Currently, we have no new long-term contracts locked in this quarter due to market volatility. Approximately 50% of our vessels are under long-term contracts ranging from 1 to 5 years. We will update the market if any new contracts are secured. As for fleet acquisitions, we have no commitments at this time and will make decisions based on market conditions and pricing. (Unidentified_1) Q: How does the company view the quality of Chinese-built ships compared to Japanese-built ships? A: Historically, Japanese yards have been favored by many charters. However, many first-class Chinese yards now produce high-quality ships comparable to Japanese-built ones. We evaluate ships based on quality, customer needs, and price, and we will continue to make decisions that align with our strategic goals. (Unidentified_1) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Supermax downgraded after RM24mil loss in Q3
Year to date, Supermax shares have crashed 43% in tandem with other local glove makers which have also seen similar drops. (Bernama pic) PETALING JAYA : Supermax Corp Bhd was slapped with downgrades by research houses after posting a larger-than-expected loss in its third quarter ended March 31 (Q3 FY2025). The glove maker's net loss widened to RM23.81 million from RM686,000 a year ago, its ninth quarterly loss out of its 10 most recent quarters. The loss was primarily due to higher operating expenses and a RM12.7 million unrealised foreign exchange loss following the depreciation of the US dollar against the ringgit. For the first nine months of FY2025, it posted a bigger net loss of RM93.36 million from RM47.1 million a year ago, while revenue rose 34.4% to RM627.11 million from RM466.53 million. The disappointing results announced yesterday spooked investors, with the stock falling as much as 3 sen or 4% to 69.5 sen today, its lowest level in nearly two months. Year to date (YTD), the shares have crashed 43%. The plunge is of a similar magnitude with other local glove makers such as Top Glove Corp Bhd (-37% YTD) and Kossan Rubber Industries Bhd (-41%), which have been hammered by Chinese rivals flooding the global market to counter the sharp drop in orders from higher US tariffs. Within Malaysia, glove makers are struggling with high energy costs and labour shortages due to a freeze on foreign worker intake. This puts them at a distinct disadvantage to countries like China, Thailand, Vietnam and Indonesia, which have lower operating costs. To remain competitive, the local players are focusing on automation, improving efficiency and cutting costs. RHB Research has downgraded Supermax to a 'sell' from 'neutral', and lowered its target price to 64 sen from 72 sen previously, a 12% downside. Frontloading effect in US market In a note today, the research house said it expects Supermax to remain in the red for the subsequent quarter, no thanks to the impact of a weakening greenback coupled with subdued average selling prices (ASPs). It said higher ASPs were offset by a fall in sales volumes, attributing it to the 'frontloading effect' as Chinese glove makers flooded the US market ahead of the 50% import tariff implementation. 'The group estimates that this inventory stockpiling by US customers will take six to eight months to deplete before the resumption of usual stock replenishment,' it added. Given the subdued outlook, RHB expects Supermax's upcoming quarterly results to likely be weaker quarter-on-quarter on the back of a sluggish demand outlook, glove makers' inability to raise ASPs, and the effect of a weakening US dollar. CIMB Securities has also downgraded Supermax to 'hold' from 'buy' and expects sustained losses for at least the next 12 months, amid a tougher operating environment. It said the group could remain loss-making until its financial year ending June 30, 2026 (FY2026) due to continued start-up losses from its US glove manufacturing plant. Supermax is the only Malaysian glove company to have set up a manufacturing plant in the US. The facility in Houston, Texas, commenced production in January this year. To be built over four phases, the plant will have an annual production capacity of 19.2 billion pieces of gloves when fully completed. The current phase one entails capital expenditure of US$350 million (RM1.5 billion). Supermax was founded by its executive chairman Stanley Thai and his wife Cheryl Tan in 1987. The group produces over 24 billion gloves a year and exports to about 165 countries.
New Straits Times
22-05-2025
- Business
- New Straits Times
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.
Focus Malaysia
24-04-2025
- Business
- Focus Malaysia
Supermax co-founder Thai showed total disrespect to the administration of justice in family court drama
SUPERMAX Corp Bhd executive chairman Datuk Seri Stanley Thai Kim Sim had wilfully refused to comply with the term of the Kuala Lumpur High Court Order to declare his assets and bank accounts. Justice Evrol Mariette Peters in her written grounds of judgment on April 8 said she found the conduct of the 64-year-old Supermax co-founder to be deliberate, intentional and a wilful refusal to comply with the Court Order. It was also indicative of his impertinence and total disrespect to the administration of justice which the Court took an extremely dim view of. 'Contempt of court is, therefore, less about an individual's personal failure to follow orders and more about the broader principle that the judicial system must be respected and able to operate without interference,' revealed Justice Peters. 'No one should be allowed to thumb their nose at any court order regardless of his position.' Thai was fined RM60,000 for refusing to fully comply with a High Court order that instructed him to divulge certain details in the judicial separation proceedings initiated by Datuk Wira Tan Bee Geok. In addition, he was ordered pay Tan RM30,000 in costs. Justice Peters further commented: 'I must emphasise that Thai is no stranger to financial or legal matters. As an experienced businessman, he is well-versed in handling complex financial transactions, asset management and legal compliance. 'Given his expertise, he undoubtedly understood the necessity of full financial disclosure especially in proceedings involving asset division. His failure to disclose his bank account balances cannot reasonably be attributed to ignorance or oversight.' 'Not remorseful' By filing the Application to Set Aside which was baseless and unsubstantiated, Justice Peters contended that Thai had deliberately prolonged the committal proceedings, thus creating unnecessary hurdles instead of addressing the core issue which was his failure to comply with the Court Order. She agreed with Tan's contention that Thai's move was a calculated delaying tactic designed to waste judicial time and evade accountability. Justice Peters went on to add that even after being fully apprised of his breaches, Thai took no steps to correct his non-compliance. Despite ample opportunity to provide full and accurate financial disclosure, he refused to take remedial action, hence demonstrating a blatant disregard for the Court's authority. 'To make matters worse, Thai failed to issue even an apology for his failure to comply,' she ruled. 'Acknowledging wrongdoing – if not through substantive action, then at least through an expression of regret – could have signalled some willingness to rectify his conduct. Yet, his continued silence only reinforced his lack of accountability.' Accordingly, the Court imposed a fine of RM20,000 for each of the three categories of non-compliance which amounted to a total fine of RM60,000. The categories were as follows: Thai's failure to fully disclose details of his bank accounts; The failure to disclose all of his bank accounts, including his EPF; and The limited disclosure of shareholding and properties as of the date of the Judicial Separation in April 2022. Thai and Tan's marriage suffered after numerous allegations were made by both parties against the other. Tan filed for judicial separation in April 2022, while Thai filed his divorce petition in April last year. At 2.52m, Supermax was unchanged at 80 sen with 3.81 million shares traded, thus valuing the glove maker at RM2.61 bil. – April 24, 2025 Main image credit: The Edge
Telegraph
22-04-2025
- Politics
- Telegraph
We need US-style Supermax prison regimes for terrorists, says union
Dangerous terrorists should face US-style 'Supermax' regimes in jail, a prison officers' union has said. Mark Fairhurst, the chairman of the Prison Officers' Association (POA), said terrorists sent to special 'separation' units should only be allowed out of their cells while cuffed – and only for food, exercise, visits and medical treatment. His demand came ahead of a meeting on Wednesday with Justice Secretary Shabana Mahmood, who announced on Tuesday officers will be issued with Tasers as part of a trial to protect them against violent offenders. However, Mr Fairhurst said the Ministry of Justice should go further. Mr Fairhurst said: 'We need a Supermax regime. We model it on the US. We isolate them. They don't associate with other prisoners, they get the basic entitlements and they are cuffed every time they are unlocked,' he said. 'That would be for those who meet the criteria for a separation unit. 'We are dealing with terrorists. Their ideology will not change. That man is determined to murder a prison officer on duty and we don't have the capability to quell that level of threat because we have not got the equipment available to us. That needs to change.' Ms Mahmood has also pledged the prison service will carry out a snap review into whether officers should be issued with protective body armour, or stab vests, the third of the POA's demands. The move comes 10 days after convicted terrorist Hashem Abedi, the brother of the Manchester Arena bomber, attacked four prison officers in HMP Frankland high security jail, near Durham, with two home made knives and hot oil. Three officers were hospitalised. One is still being treated by doctors. One was stabbed close to his jugular vein and a second received five stab wounds in his back, leaving him with a punctured lung, according to Mr Fairhurst. Abedi, who is serving a life sentence for his part in 22 murders in the Manchester Arena terror attack, has since been moved to Belmarsh prison, in south London. He was in a separation unit at HMP Frankland, one of three such units in English jails. He was in the kitchen at the time of the attack and is believed to have fashioned the knives out of either a baking tray or oven grill. The Ministry of Justice has since suspended prisoners' access to kitchen facilities in such settings. Speaking in the Commons on Tuesday, Ms Mahmood said: 'The House will be aware of the attack at HMP Frankland on April 12. The bravery of the officers involved that day undoubtedly saved lives, my thoughts are with them as they recover. 'I think also of the victims of the Manchester Arena bombing and their families who are understandably outraged. 'Since the attack, I have suspended access to kitchens in separation centres and in close supervision centres. Alongside that, an independent review will ascertain how this incident was able to happen, what more must be done to protect prison staff, and more widely, how separation centres are run. 'The Prison Service will also conduct a snap review of the use of protective bodily armour. In addition, I can today announce that HMPPS (HM Prison and Probation Service) will trial the use of tasers in our prisons. 'Wherever we can strengthen our defences, to better protect our staff and the public, we will do so,' she told MPs.
