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Supermax is approaching its QTR 1 2021 result. All investors  are waiting in anticipation.

With the recent spike in case worldwide. Our prediction of Superbull in our previous articles is edging closer than ever.


In fact some gloves stock had broken new high and close to new high.

Renewed interest in Glove stock is rekindled as shown in this chart.

With the Covid cases breaking new high and local second wave outbreak. We might revisit a all time high Bursa Trading volume again from CMCO or even nationwide MCO and Loan Moratorium extension. Glove stock will be the darling again without doubts as more funds move back from other recovery theme stock.

Supermax had the following factors to look forward to:

1. Qtr 1 Good result. 

2. Share dividend date

3. Business prospect update which provide further price catalyst.

4. DSST return as BOD (some of his great and new plans can be expedited now)

5. KLCI indexing in Dec.

6. Plans for the 90mil Treasury share after the 45 :1 share dividend paid out. Another Share dividend or a possible  Oversea listing like TG?

To give a head up to prepare everyone to become an extraordinary investor.wink

We will talk more about supermax gloves and beyond gloves!!! 



Crest duration for each outbreak:

SARS - 2yrs

H5N1 - 5 yrs

H1N1 + Mers - 5 yrs

EBOLA - 2-3 yrs

2017 to 2019 - Mysterious Outbreak ??? before Covid 19

COVID 19 - 2020 - 2025 ?

The demand cycle for disease outbreak can be clearly depicted in the above chart with a crest formation lasting typical 2-3 yrs.

For H1N1 and H5N1 lasted 5 yrs. For Covid which is far more serious, we expect the duration will not be lower than H1N1. It will be structural changing and a huge long term impact can be seen. Margma project a 60% increase from 270 to 430 bil in the yr 2022. Mercator projected a 500bil demand by 2022 in the latest report. We expect a minimum 5 yrs crest formation at least. lasting to 2025.

We have no worries to demand side of the gloves. 

The greater worry comes from the supply side. With so much additonal production coming online. The equilibrium will come one day when asp will normalise. Margma expect asp to normalise in 2022/23 when equilibrium will be reached.

But when we talk about quilibrium reached.are we talking about asp falling back to precovid level ?



During Covid (2020-2023)





POST COVID (2023 beyond)



Price may gradually come down lower to 60-70 than peak of usd100 -120 but is still significantly higher than precovid of usd23. 

Due to the following reason:

1. Consumer used to the heightened price after few years.

2. Inflation and weakening USD

3. Increased cost of material

4. Tax

5.  Contract ASP between manufactuer and distributor are set at a higher norm price than precovid.

6. Hard pressing by Major distributor weakens due to COVID as more player goes OBM and direct with customers resulting in higher asp in gloves industry.

Our rough estimate for coming qtr 1 result 

We are expecting a PAT 781 m to 917 mil. AVG 850 mil.

From 400m in qtr 4 2020 to 850m in qtr 1 2021. Its a 110% QOQ increase !!!

From 24mil in qtr 1 2020 , its a 3400% increase in 1 year !!!

The price @ qtr1 2020 was about 68sen. It had risen to 10.70 which is only 1500%.

With 3400%, the price of Super shld be 68sen x 34 = RM23.12

At current price it is valuing Supermax at 24mil x15 = 360mil PAT which is even lesser than last Qtr PAT of 400 mil.

At 360 mil, it is even lower than post covid profit projection of  minimum 400m. (our projection is at the end of page)

So this is a gross undervaluation.


Beside the stellar performance from Glove business. Supermax do have other ventures with huge potential as follows.



The following are some detail information about this great product.

Unique design with sterilizable, 3D custom-printed shells and silicone ring,  fitted for each individual. BeyondFit is a perfect seal with the face of every single user, for long-lasting comfort and maximum protection.

  • Highest medical-grade bacterial and particle filtration efficiency standards
  • Over 5x more breathable than traditional meltblown filters used in disposable face masks
  • No CO2 build-up within the mask over extensive use
  • No heat build-up within the mask over extensive use
  • Can be used for up to 4 hours in an non-healthcare setup (otherwise, requires change at every patient)
  • Can be safely removed and changed in less than 10 seconds on the BeyondFit™
  • Anti-Impact rigid shell for optimal safety in any environment

Make it your own

  • Your choice of mask shell, filters caps and head straps out of 9 colors, providing over 720 color combinations
  • Your name engraved in it
  • Organization name engraving option
  • Organization logo engraving option


BEYONDFIT is good for professonials and specialists who need maximum safety and comfort. Good for replacing all mask type including N95 for front liners, clean room operation and specialised need field like mining ,chemical environment etc.

Highest margin due to more features.(30%> margin est.)

The comfort, breathability, and all other features of the BeyondFit™, with the simplicity of a standard product. No face scan, no 3D-printing, available in all standard sizes, suitable for all types of facesThe perfect solution to equip a large fleet of employees or customers.


  • A standard mask that was designed and optimized from a 10,000+ biometric references database
  • Standard sizes available from X-Small to X-Large
  • Your choice out of 5 color designs
  • A pack of 50 SafeFilters™
  • Possibility to engrave the name and logo of your organization and to personalize color design (Enterprise plan only)


Good for mass public less the hassle and time consuming custom made process . Mass producing for easier marketability and reach out. Lesser margin but compensate with better volume.(15%> margin est.)


The new face mask filters generation. Higher bacterial, viral, and particle filtration efficiency, and 6 to 8 times more breathable than all previous filters. You will never have to compromise safety for comfort ever again.

  • 50 pack of single use, disposable SafeFilters™ good for 25 mask wearings
  • Certified Bacterial Filtration Efficiency and Viral Filtration Efficiency of 99.9%
  • Certified Particle Filtration Efficiency of 99.3%
  • Certified breathability index 6x better than any other N95 or surgical face mask
  • Removable and changeable filters without mask removal



Recurring sales and profit . Better breathability 6 x better than n95 is KO factor.

Ability to  remove and change filters without removing mask is a very important aspect in full protection without too much hassle, contact and risk. 


Even post covid BEYONDMASK is able to replace conventional n95 and 3ply mask expanded market.

US$1 billion market for N95 alone.


As the global demand for N95 masks has skyrocketed in 2020 due to the coronavirus (COVID-19) pandemic, producers have scrambled to increase production to meet that demand. The market value of N95 masks amounted to more than 802 million U.S. dollars in 2019. By 2027, it is forecast that this value will increase by more than double, to nearly 1.90 billion U.S. dollars.

It is estimated that production of the highly protective N95 face masks in the United States alone will increase to 180 million units per month by the end/winter months of 2020.



Registration in US in process.



2020-07-06 Application Filed
2020-07-09 Status: Live/Pending
2020-07-09 Status: New application will be assigned to an examining attorney approximately 3 months after filing date.
2020-07-09 Transaction Date

2020-07-09 filed.

New application will be assigned to an examining attorney approximately 3 months after filing date.

Certification and rolling out big scale is in process in US. Roll out in other countries will be in process as well.



Supermax will be fully supporting in the rollout as can be seens in previous result notes.

a) Supervision Optimax Sdn Bhd:

The Facemask Manufacturing in Malaysia would be undertaken by a new division of Supervision Optimax Sdn Bhd.  Initial capacity: 8 million pieces of Face Masks per month.  Target date of Commercial Production: CY 4Q2020  Target market: Global Market through the existing distribution channels in over 165 countries. However, we shall supply the Made in Malaysia Facemask for the local market to fight the Covid-19 pandemic at the moment until Covid-19 is contained & until the ban of the Export Sales is lifted.  RM8.0 million has been budgeted to start this initial project.

note: This Facemask production can be normal face mask and also Beyond mask which yields much higher profit.

Just a rough estimate:

8 million Beyond mask x rm10 profit per mask = 80 mil profit per mth x 3 = 240 mil /qtr for malaysia and export.

b) Supermax in Canada: To respond to the call by the Canadian Government to be self-sufficient in PPE supply with Made in Canada, we are working with our Canadian partners to invest in Face Mask Manufacturing with primary focus for the Canadian market. More details will be announced to Bursa as soon as it becomes available.

Potential Canada market alone:


The Trudeau government's announcement Tuesday that it will spend up to $2 billion to procure personal protective equipment — including more than 60 million N95 masks — comes weeks into a global pandemic and raises questions about Canada's emergency preparedness. 

60 mil /yr x rm10 profit = 600 mil profit per year conservatively. 

If sum them up = 640mil + (240 mil /qtr. x4)=1.5 bil profit /yr or 375 mil/qtr.

this is about the previous qtr 3 profit of 400 mil jus for BEYONDMASK alone. And it is recurring becoz it is meant to replace the N95 users even b4 covid.This is a huge potential and it is possible to be attained with the future massive rollout by stages.


Production of BEYONDMASK requires clean room and 3D printing machines conforming to ISO and health standard.

It should be produced locally so it is possible that Supermax will set up Production Facility in CANADA ,US ,UK, BRAZIL and MALAYSIA due to their well established distribution network centre. Since they can share the highskilled workforce in between contact lens department.

They may consider setting up localised contact lens facility or vice versa to tapped into local high skilled workforce starting in CANADA in MALAYSIA as the first jumping stone. 



Contact lenses with roadmap to expand to 1 billion lenses after obtaining license from china market. 

 "Supermax has spent about RM100 million in the contact lens segment as of November 2019, while total revenue contribution from the segment remained small at about 2%. Executive director Cecile Thai (the founder’s daughter) added that Supermax has an existing annual manufacturing capacity of 70 million lens with a 60% focus on OEM. Its utilisation rate stood at 60% in 2019. The company is looking to grow in the U.S., Japan, and Eastern Europe."

The global and U.S. contact lens market stands at US$12 billion and $5 billion respectively. 

US$12 billion (RM50 billion x 3% = rm1.5billion potential revenue for AVEO VISION).

Currently contact lens only account for 2-3% of total revenue (precovid). If the growth of 15x (70mx15=1bil)= 30-40% of current reveunue. Contributing to big profit to bottomline.Contact lens are high premium product with good margins. And highly recurrent profit from regular customer.

Supermax roadmap is to hav 1-2 billion caps by 2028. Meaning a growth of 1500% to 3000% from 2019

Current Covid have enable to expand and captured more direct customer than ever before. And also increase AVEO brand awareness through Auerlia and Supermax other brand product. Creating a Family brand awareness for supermax own house product. Saving much marketing effort and cost. We can see distributors are carrying AVEO lenses and Supermax gloves in their distribution since they are both healthcare product.

With the current super profit generated from Gloves. The speed will be greatly boosted. We expect it can be acchieved within 3-4 yrs for 1 bil caps. 

With the expansion of production facility for BEYOND MASK and CONTACT LENS. It is even more convincing now to be done concurrently with the major Distribution centre in US, UK, CANADA etc. 

One of the expansion problem with contact lens expansion is short of high skilled workforce in malaysia.


extracted from the above news dated 15 August 2016

  • Rubber glove producer Supermax Corporation, which aims to increase its contact lens capacity to two billion pieces annually in the next 10 years from 40 million currently, plans to set up contact lens plants in Singapore, the US and the UK.
  • Management noted that Malaysia will remain its main manufacturing hub, but note the challenge in getting talent in the country, adding that at least 95 percent of its workforce are engineers with minimum qualification of a university degree.




U.S. buyout firm KKR & Co Inc KKR.N is in advanced talks to buy contact lens retailer 1-800 Contacts for more than $3 billion from investment firm AEA Investors, Bloomberg News reported on Tuesday, citing people familiar with the matter.

Some analysts have said the online eye-wear industry is set to benefit from work-from-home policies as consumers increase purchases of protective glasses, with the shutting of mall-based retailers due to the COVID-19 pandemic also likely to drive a jump in market share."

Online eyewear industry is on the rise. Supermax AVEO VISION is a growing online eyewear company. A potential underdog which will spring and outperform any market underestimation.


AVEO is no.8th and 1800-contact is on 10th of the list. It doesnt mean AVEO Vision is better but it shows that AVEO vision have its competitve edge as a new online contact lens start up. 


"Is this the new normal?  All we know is that instead of going out, we’re letting the world come to us for a while. Aveo daily contacts have always been delivered right to your door, but now we’re making it easy to renew your prescription at home, too! You can take our FreshRx vision test in minutes, without even leaving the house."


The next new normal will be getting your test and contact lens even without leaving your house!!!

What Datok Seri Stanley Thai said about AVEOVISION in 2017 before he is out of BOD which caused a setback in contact lens development as her daughter have to manage the supermax glove business as well.


"Outside Malaysia, Supermax owns a six-acre (2.43ha) parcel in the US that could be developed into a contact lens manufacturing site, provided US President Donald Trump’s tax reform presents the group with a good deal."

With BeyondMASK , it might be coming true again for the new mask and lens expansion lines. 

"The next phase of expansion for Supermax’s contact lens business will only happen in about two to three years, says Thai, adding that the group does not have room to build new production lines. However, he is planning to set up a “contact lens headquarters” in one of the company’s smallest and oldest glove factories. Relocating and repurposing the factory will take up to three years, which means capital expenditure for the contact lens business will not be substantial in the near future."

Its about time the relocating and repurposing is due for completion in 2020/21. And the expansion is ready to take off with huge flush of cash on hand since covid.



1. OBM- X + 48 billion Capacity by 2022

With OBM-X and 48 billion capacity. Supermax can sustain 400m per qtr in the event of asp falling to 50 to 60 ASP precovid at 22% margin. It is very releastic as Supermax have removed middleman and agent and expanded OBM to 97-100%(70% precovid) and a double capacity with  highly efficient new lines. Hence a 22% margin is true and fair.

Due to the fact that post covid, ASP will remain higher than precovid due to the reasons stated in  GLOVE section above

The above calculation is a very conservative projection. Providing a support for long term invester.



Supermx can estimate to gain a 100 m to 200m profit per qtr on worldwide roll out.

10m mask + recurring filter /qtr  (only 3 m per month which is easily acchieve on a worldwide scale)

= 10m x rm10 profit = 100 m per qtr

The last time we saw a custom made Beyond mask is selling at USD 100.(3 months ago, price might drop now)

Of course we believe the price will come down with economy of scale to make it more affordable to public.

So a rm10 profit is very conservative.


3.Contact lens.

usd33 for 60 lens is the retail price in us = rm 2 per lens

Estimate 20% profit = 40 sen

long term 1 billion lens /yr x 40 sen = 400 mil profit = 100m /qtr


Total = 400m +100m +100m = 550m per qtr conservative projection.

eps = rm0.81 eps 

pe 20 (KLCI index mean for gloves)  = rm16.20 POST COVID 2022/23

Meaning investor buying in at 10.50 now will make money even covid is over with a 60% potential return in 3 yrs time.

Not considering share and cash dividend along the way.

As a savvy investor, one should look beyond beyond the horizon to prepare ourself and have the conviction to wait or position to jump in for future run anytime .  

Supermax had positioned itself well for short ,mid and long term growth and expansion .Even in the event of post covid Supermax have all the correct ingredient to continue deliver exceptional profit with or without covid. 


Look out for Supermax..Look Beyond glove !!!

Disclaimer…This is not an advice to buy or sell. It is just for education and sharing purpose.

CiA do not take accountability for any trading occurring from our information disseminated.




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