KUALA LUMPUR, May 7 — Supermax Corporation Bhd’s dual listing on the Singapore Exchange (SGX) has been put on hold amid current circumstances.

MIDF Research said in a recent post results briefing, Supermax indicated that the idea of using its treasury shares for secondary listing was not feasible at the moment.

"We think that the company could instead use the treasury shares to be paid out as dividend to shareholders.

"That said, we also anticipate a combination of cash dividend due to its healthy cashflow and strong cashpile of RM3.7 billion as of end-March,” MIDF Research said in a note today.

It said the glove maker also noted that average selling price (ASP) has moderated by 15 per cent to 25 per cent from the peak.

Spot prices are also noticeably lower than some of the contract prices.

The softer pricing can be attributed to additional capacity in the market, which led to higher supply and softer nitrile rubber prices.

"Management gauged that ASP in the next two quarters should remain strong even though it has come off the previous record,” it said.

Supermax is also preparing itself to continue to thrive post-pandemic, through further expansion of production capacity and market expansion.

It is planning for production capacity expansion of 22.2 billion pieces of gloves in the next two years from Plant 13 to 17, locally.

In addition, the company is working closely with governmental agencies overseas to establish glove and face mask production facilities in countries it operated.

MIDF Research reiterated "buy” recommendation on Supermax, with a target price of RM6.73.

At 10.27am, the company’s shares rose 11 sen to RM4.98, with 19.71 million shares traded. — Bernama