Strong demand for rubber gloves is driving the domestic rubber products market, Affin Hwang Capital Research said.
The firm has told its clients to buy Supermax Corp Bhd.
It also said that the vinyl supply disruption in China would drive long-term demand in the domestic rubber products sector.
“We reaffirm our ‘overweight’ call on the sector, as we do not see the vinyl supply disruption in China as a one-off event, given the introduction of new environmental regulations.
“We believe that the key re-rating catalyst for the sector would be dependent on solid earnings growth delivery.
China introduced winter air pollution measures in the northern region and this has led some production capacity to shut down.