CIMB Raises Unisem Target To MYR4.44 From MYR2.90

0806 GMT [Dow Jones] STOCK CALL: CIMB Research ups Unisem (5005.KU) target to MYR4.44 from MYR2.90, to factor in more positive outlook, increased earnings visibility; values Unisem at a price-to-book of 2.2X which is slightly above mid-cycle valuation of 1.8X-1.9X vs previous target basis of 30% premium over 5-year historical average price-to-book of 1X. "We continue to advocate an Outperform on Unisem on the back of the potential re-rating catalysts of a quarterly improvement in earnings, a more sustained pace of economic recovery and a revival of consumer spending," says analyst Terence Wong; also ups Unisem's FY10-12 earnings forecasts by 11-24% for higher revenue and margin assumptions. Stock last +1.5% at MYR3.35. (elffie.chew@dowjones.com)

Yee Lee +16% On Bonus Issue, Share Split Plan

0610 GMT [Dow Jones] Yee Lee (5584.KU) +16% at MYR2.50, highest since 2000 after consumer products maker announced plans for bonus issue, share split. Company to distribute 2 bonus shares for every 5 shares; thereafter, every share to be split into two. Exercise would result in number of shares outstanding increasing by threefold. "This means that upon completion of this exercise, each share could be ultimately priced below the MYR1 mark. The affordability of the shares may spur greater retail interest," dealer says; resistance for stock pegged at MYR2.60 (2000 high), with support at intraday low of MYR2.30. (benjamin.low@dowjones.com)

Supermax up higher price estimate

Supermax Corp, a Malaysian rubber glove maker, rose to its highest level in six days after CIMB Investment Bank Bhd increased its share estimate to reflect higher demand and capacity expansion.

The stock climbed 0.9 per cent to RM6.96 at 9:08 a.m. local time, set for its highest close since April 14.

The share price estimate was raised to RM11.90 from RM9.65, CIMB said in a report today. -- Bloomberg

Read more: Supermax up higher price estimate http://www.btimes.com.my/articles/20100420092206/Article/#ixzz0lcM1Snfx

SUPERMX 1Q net profit 51.473 million (increased 161.19%)

Supermax optimistic of bullish performance

SUNGAI BULOH: Supermax Corporation Bhd is optimistic of a bullish financial performance this year as its expects earnings per share (EPS) for the first quarter of 2010 to exceed its earnings guidance for the year.

Executive Chairman cum Group Managing Director Datuk Seri Stanley Thai said the company was revising its EPS target from a minimum of 50 sen per share to a minimum of 62 sen per share for the financial year ending Dec 31, 2010.

He said the revised profit guidance for the current year took into account latex price fluctuations, foreign exchange and the possibility of a hike in natural gas and electricity tariffs.

Supermax, the world's second largest rubber glove manufacturer, is expected to announce its first-quarter results soon.

It had projected a turnover of over RM1 billion for the current financial year based on current latex prices, the expansion of two new plants and the installation of new production lines.

Thai said the new production lines and the construction of two plants in Meru and Bukit Kapar, Klang, would require an investment of RM130 million.

"The plant in Meru is expected to be fully commissioned by June or July while the plant in the Glove City project in Bukit, Kapar, is expected to be commissioned by 2011," Thai told reporters after International Trade and Industry Minister Datuk Seri Mustapa Mohamed's visit to Supermax's factory here on Wednesday.

For the financial year ending Dec 2011 Supermax projected a revenue of RM1.5 billion.

Thai said the rubber glove industry was a resilient industry and would not be affected by price increases nor the strengthening ringgit.

Shares of rubber glove manufacturers were among the major losers yesterday, after rubber prices surged to a 20-month high in Japan while the ringgit strengthened against the US dollar.

Thai said some of the issues affecting the Malaysian rubber industry and Supermax were the non-availability of natural gas supply for new expansion projects, need for consistency in foreign labour policies, lack of advance notice of utilities rate hike, increasing cost of doing business and shortage of quality middle management staff.

Meanwhile, Mustapa told reporters he strengthening of the ringgit had no impact on Malaysian exports as other regional competing currencies have also advanced.

"The issue is how can we attract Malaysian talents to return home. This is in line with the new economic model," he said. - BERNAMA