November 22, 2017 9:49 am JST
KUALA LUMPUR (Nov 22) -- CIMB Investment Bank upgrades Supermax Corporation to Add from Hold, raises target price to MYR2.46 from MYR1.74. Notes, Plants 10 and 11, which have not been fully operational due to insufficient water supply for the last three years, are ramping up production; house expects total capacity to rise by 7.4% to 23.2 billion pieces per year. "Given that the infrastructure issues faced by Plants 10 and 11 have been resolved, we believe earnings visibility for the stock has improved," house says in investor note. Lifts forecast for FY18-FY20 earnings per share by 1.1%-7.4% to account for higher sales volume, increasing operating efficiency and lower raw material prices. Supermax shares fell 2.9% Tuesday to MYR2.00.