United States

Analyst Research Report Snapshot


Company Update – Kossan (BUY, maintain) - In the pink of health




Affin Hwang Investment Bank Bhd


15 Jul 2013





Companies referenced:


Available for Immediate Download

On set for larger capacity, FY13-15 EPS revised upwards by +13.6% to 23% Our recent meeting with Kossan’s (KRI) management reaffirmed our positive view on KRI. Key takeaways from the meeting includes: 1) an additional 120m pcs of gloves coming on stream in Dec 2013; 2) further glove capacity of 5bn pcs by end-FY14; 3) a stable margin environment from higher volume sales in its higher margin technical rubber products despite lower selling prices due to lower raw material cost; and 4) a total capex allocation of c. RM70-75m p.a over the next 3 years for the building of 6-7 new plants on a 56-acre piece of land in Batang Berjuntai. We are forecasting a revised FY13 net profit growth of 34% yoy compared to our earlier forecast of +16.9% yoy. Our FY13-15 EPS revision of +13.6% to +23.5% takes into account: 1) an upward revision in our gloves production assumption to 16.12bn and 21bn pcs (from 15.6bn and 19bn pcs) in FY13 and FY14 respectively; and 2) lower cost assumption as KRI produces higher niche products eg thinner gloves (from 4mg to 3.8mg).

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.