KUALA LUMPUR (Jan 20): CIMB Research has upgraded Supermax Corporation Bhd to “Add” at RM3.39 with a higher target price of RM5 (from RM2.95) and said it was positively surprised by developments in the contact lens division.

In a note today, the research house said it was encouraged that it has finally resolved the utilities issues at Plants 10 & 11.

“Supermax is in the midst of expansion to add 5.6 billion capacity by end-FY16.

“Upgrade Supermax to Add with a RM5.00 target price, based on 18.4x CY17 P/E.

“Stronger earnings performance, better capacity delivery and higher contact lens contribution are potential re-rating catalysts for the stock,” it said.