Kossan’s founding Lim family emerges as Luxchem’s substantial shareholder
By Syafiqah Salim / theedgemalaysia.com 27 Oct 2023, 06:45 pm
KUALA LUMPUR (Oct 27): Kossan Holdings (M) Sdn Bhd, the largest shareholder of Kossan Rubber Industries Bhd, has emerged as the substantial shareholder in Luxchem Corp Bhd, after acquiring 6.09 million shares, or a 0.569% stake.
According to Luxchem’s filing, Kossan Holdings bought the block shares via direct business transaction on Wednesday (Oct 25). Based on the back-of-the envelope calculation, the cost of this purchase was RM2.86 million, based on Luxchem’s closing price of 47 sen at the time.
This raised Kossan’s shareholding in Luxchem to 5.168% or 55.29 million shares. Prior to the transaction, Kossan Holdings held a 4.599% stake or 49.2 million shares in the group.
Kossan Holdings — which is controlled by founder Tan Sri Lim Kuang Sia and directors, including his three sibblings Lim Kuang Wang, Lim Kuang Yong and Lim Leng Bung — is the second largest shareholder in Luxchem, after Chemplex Resources Sdn Bhd (38.92% stake).
Aiya another tomorrow and tomorrow again , now can predict only -Topxxxxx latest qr until 31 Aug losses -70m after impairment 390m hv some improvement. -Hartalega untill 30 Sep turn to profit 27.7m -Kossan ????? is a teka teki game
I don't think they have impairment loss bcoz they didn't decommission. They improve their machine and process to increase productivity. Line will still jalan after improvement. Unlike Harta, terus shutdown.
2020 data on production capacity TopGLove 86.4 billion pcs Hartalega 40.5 billion pcs Kossan 32 billion pcs Supermax 26.2 billion pcs
So Kossan & Supermax is in the sweet spot in production size for current demand. TopGlove and Harta got higher production capability means their fixed cost is high. Harta shutdown Bestari Jaya is cut down 32% of production capacity = 27.5bill.... So Kossan is still within the range of safe play in production size.
"Recognising these challenges, the Group had embarked on a capacity rationalisation exercise in FY2022 to be more efficient and lower operating costs where we decommissioned two older plants (14 years and 19 years respectively) with a total capacity of 3 billion pieces"
But I can't find any impairment cost for this. Anyone could explain this?
If got impairment loss like Harta, it would had been reported in financials. No report means no losses lor. Moreso, 14 & 19 years ... DEPRECIATION already recorded over the years. Those plants should ALREADY recorded "losses" in those years.
Felix888999 Maybe during asp war Kossan not much impact so just cut down 3 billion pieces arhh no need impairment lo. BTW Kossan hv major business not only gloves .
Riverstone has annual capacity of 15 billion. Meaning they are smaller. Fixed cost is lower. Of coz their Net profit is good. But only at this transition moment. But they can't take the advantage when demand spikes. It's gloves we are talking about. Nothing high end. Glove is a volume game.
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ryoyagod
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Posted by ryoyagod > 2023-10-13 10:49 | Report Abuse
ABRDN is quite active in collecting Kossan and Farm fresh 😮