Equity Analysis /

MY : Supermax Corp - Maiden US plant underway!

    Walter Aw
    Walter Aw

    Research Analyst

    30 March 2022
    Published byCGS-CIMB

    SUCB announced the construction of Phase 1 (4.8bn pcs p.a.) of its 315-acre US glove facility will begin in 2QCY22, with commercial output by 2QCY23. Despite its higher production cost (vs. SUCB’s other plants), this plant allows SUCB to cater to US-based demand with minimal social compliance issues. Overall, we are slightly positive on this news assuming: i) strong execution, ii) no delays in construction, and iii) no cost overruns.