Supermax Corporation Berhad

Introduction

SUPERMAX Corporation Berhad is a world class latex glove bloc and produces high quality of medical gloves. Also, it has been listed on the Main Board of Bursa Malaysia. Dato’Seri Stanley Thai and his wife Datin Seri Cheryl Tan was the person who established Supermax Group. In 1989, even they are just a small group of dedicated workers but they still work hard in their primary manufacturing facility. After that, SUPERMAX Corporation Berhad ventured into their own brands manufacturing through their outstanding business foresight. Through innovative packaging, brand embodiment and high quality products, Supermax has become the first own brand manufacturing (OBM) in Malaysia (Supermax Corporation Berhad 2009).

There are 160 countries that recently Supermax export in the region Asia, Middle East, America and South Pacific countries. SUPERMAX Corporation Berhad able to manufacturing up to 20billion of gloves per year and fulfills about 12% of the global demand for latex gloves. In Malaysia, Supermax Group contains 11 manufacturing plants and equipped with most advanced machines, research and development center and energy saving system. Supermax has six own corporate office and distributors in Canada, United Stated, Brazil, United Kingdom and so on and corporate with 1,200 distributors in worldwide. In addition, Supermax has obtained an important market share in global market, especially in United States dental market (Supermax Corporation Berhad 2009). The provision of persistent quality control is one of the reasons that causes Supermax become a successful company. Other than that, they also put a lot of effort in brand differentiation and niche marketing. Nowadays, SUPERMAX’s brands product has become the first choice of consumer around the world because of their superior quality products. Other than that, SUPERMAX Corporation Berhad has also invested in the contact lens industry. It cause Malaysia become the first domestic lens manufacturer. Other than the contact lens industry, SUPERMAX Corporation Berhad also has invested to the EyeCare and Lens Care industry (Bursa Malaysia 2017).

         “Protect your health, protect your environment” which is the slogan of SUPERMAX Corporation Berhad and it can be classified as a health protection business. It can be seen that manufacturing plants of SUPERMAX with biomass boilers which can automatic feed smokeless combustion system and it designed for glove production in order to achieve high productivity. Compare to normal energy generated, the biomass boilers can save more energy cost. Through the constantly check and full compliance to Department of Environment, effluent treatment plant of SUPERMAX Group able to utilize their wastewater process more efficiency and make our environment to stay green and health. Supermax Group’s denied gloves as waste has been written down that less than 0.5% rate in 2008. This is because the frequently of production process in their good quality management system so they are able to ensure the low rate of their product rejection. Therefore, one of the important elements of cost saving and achieving business efficiency is to make sure that the resource of the environment can be protected (Supermax Corporation Berhad 2009).

The mission of the SUPERMAX Corporation Berhad is to become the worldwide brand of selection among users of Medical Gloves. Therefore, Supermax will develop and organize well in their product in order to achieve the mission. The vision of the Supermax is to become the leader of the global market in the manufacture of Medical Gloves. Because of their effort, Supermax has contribute some successful brand such as Maxter, Aurelia, Medic Dent, SuperGloves that Supermax developed since it is an own brand manufacturer. These brands are recognition and fully trusted by pharmacy, hospital, laboratories and so on (Supermax Corporation Berhad 2009). In addition, there are many essential assets which can develop a country to a developed nation. One of the essential assets is human capital. Supermax cooperation with Malaysia Rubber Export Promotion Council (MPREPC) is willing to provide help to the teenagers who are not affordable continue their academic dreams by providing them a scholarship in the over past 7 years (Bursa Malaysia 2017).

Since consumers choose to buy their products because of their unique quality therefore Supermax will aim to focus on developing the product innovation and try hard for the “pursuit of quality and excellence". SUPERMAX Corporation Berhad has achieved a lot of awards over the years; several of the major best awards are The Edge Billion Ringgit Club’s inaugural Company of the Year Award in 2010. In the 2009 and the year 2008, SUPERMAX Corporation Berhad has achieved Export Excellence and Brand Excellence which are in the Industry Excellence Awards. Through this awards SUPERMAX is successfully recognized by the people around the world and their reputation also had increased (Supermax Corporation Berhad 2009).

Time Series

2.1 Quick Ratio

We choose quick ratio instead of current ratio is because it has a better view of the company on how well a company can pay off its obligation (Accounting tools n.d.). As inventory is very difficult to convert cash in short term even we have sold our inventory in short term but is still consider as receivable now (Accounting tools n.d.). So by deducing the inventory from current assets will have a better view. The quick ratio of Supermax in year 2016 is 0.92 times but it is only 0.79 times in year 2017. The performance of the company is less than 1 in both years, this indicates that Supermax is not able to pay off its current liability in short term regardless in 2016 or 2017 (My Accounting Course n.d.). Supermax has already experienced a lower than one quick ratio in year 2016, this means it is hardly to pay to its supplier and the problem is even more serious in 2017. This is not a good sign because if Supermax is unable to pay its account payable, it may facing financial problems (My Accounting Course n.d.). The supplier may not want to continue to supply the rubber and latex to the company and it will face production problems. Although in both year is less than 1 but year 2016 has a better performance than year 2017. The drop in quick ratio of Supermax is due to the company has invested in its Research and Development (SUPERMAX Annual Report 2017, p.11). Besides, it is also owing to the increases in inventory because it identified there is a potential in the market (SUPERMAX Annual Report 2017, p.13).