Highlights
KLSE: KOSSAN (7153)       KOSSAN RUBBER INDUSTRIES BHD MAIN : Health Care
Last Price Today's Change   Day's Range   Trading Volume
2.33   +0.05 (2.19%)  2.29 - 2.35  1,236,100
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Overview

Market Cap: 5,960 Million
NOSH: 2,558 Million
Avg Volume (4 weeks):4,391,005
4 Weeks Range:2.18 - 2.52
4 Weeks Price Volatility (%):
44.12%
52 Weeks Range:1.27 - 2.83
52 Weeks Price Volatility (%):
67.95%
Average Price Target: 1.71
Price Target Upside/Downside: -0.62

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2024 [#1]  |  21-May-2024
Next QR | Est. Ann. Date: 30-Jun-2024  |  27-Jul-2024
T4Q P/E | EY: 85.22  |  1.17%
T4Q DY | Payout %: 0.86%  |  72.98%
T4Q NAPS | P/NAPS: 1.5132  |  1.54
T4Q NP Margin | ROE: 4.43%  |  1.81%

Headlines

Date Subject
25-Jun-2024 下跌股:高产柅品工业 RM2.24支撑
18-Jun-2024 Rubber Products - Growth Set to Accelerate; Still OVERWEIGHT
10-Jun-2024 Glove - 1QCY24 Report Card: Weak Earnings Undertone
08-Jun-2024 高产柅品工业试叩RM3.83/刘礼誉
07-Jun-2024 PublicInvest Upgrades Glove Sector to 'neutral', Says Industry in Recovery Phase
06-Jun-2024 RUBBER GLOVES - Recovery In Progress
05-Jun-2024 Healthcare Sector - Mostly Within Expectations
05-Jun-2024 Daily Market Commentary - 5 Jun 2024
05-Jun-2024 Daily Brief - 5 Jun 2024
23-May-2024 Kossan Rubber Industries - A Commendable Start
23-May-2024 Kossan Rubber Industries Berhad - Satisfactory 1Q24
23-May-2024 Kossan Rubber - Meaningful Margin Expansion; Still BUY
23-May-2024 KOSSAN RUBBER - Higher ASPs and Volume
23-May-2024 Daily Market Report - 23 May 2024
23-May-2024 Mplus Market Pulse - 23 May 2024
23-May-2024 Kossan Rubber Industries - Earnings Risks Aplenty
22-May-2024 Kossan Logs Third Straight Quarter of Profits as Volume Climbs, Gas Price Falls
20-May-2024 Technical Analysis - KOSSAN RUBBER INDUSTRIES BERHAD
17-May-2024 Glove Counters Surrender Gains as Analysts Advise Investors to Stay Vigilant
16-May-2024 Analysts say glove stocks rally a knee-jerk euphoria, advise investors to stay vigilant

Business Background

Kossan Rubber Industries Bhd manufactures industrial rubber products and disposable latex gloves. The firm has three primary businesses: Technical Rubber Products, Gloves, Cleanroom Products, and Others. The Gloves segment generates the majority of revenue. The Technical Rubber Products business manufactures and distributes high technical input rubber products. The Gloves business manufactures medical grade examination gloves and specialty gloves for healthcare and industrial applications. The Cleanroom Products business sells rubber products that can be used in cleanrooms. The majority of Kossan Rubber’s revenue is generated through exports outside of Malaysia.
Analyze this stock with MQ Trader system

  19 people like this.
 
Chipee What happened to gloves in Msia will also happen in China. After China lockdown is over.
1) China gloves start making losses.
(Intco Medical made OPERATING losses in 2022 (-30,467) and 2023 (-100,958).)
2) China small gloves players got eliminated.
3) Big China gloves start rationalize (reduce) their production hence impairment losses.
4) They start selling at higher ASP.

As for the article from Edge https://theedgemalaysia.com/node/712277
"Hong Leong Investment Bank Research (HLIB Research), which is neutral on the sector, shares the sentiment, commenting that Chinese players will start to gradually increase their presence in European and Asian markets to reduce US orders."

Are they saying China gloves are not already in European and Asia market now and the years before covid ? Of course they are. In order to compete is only to reduce price and gain market share in Europe and Asia. China cannot afford to do that. They are already making losses. China has no choice but REDUCE PRODUCTION because CHINA LOCKDOWN IS OVER.

Problem with analysts on China is ... China production is BIG. Look at this data from World Bank 2019
Malaysia Export 401519 Gloves 2019 World 742,626,000 Kg
Thailand Export 401519 Gloves 2019 World 109,800,000 Kg
China Export 401519 Gloves 2019 World 73,646,800 Kg

China is only 9.9% of Malaysia production.
------
DATA on US import of gloves in 2019
United States Import 401519 Gloves 2019 World 410,269,000 Kg
United States Import 401519 Gloves 2019 Malaysia 258,422,000 Kg
United States Import 401519 Gloves 2019 Thailand 68,443,400 Kg
United States Import 401519 Gloves 2019 China 44,971,200 Kg

Malaysia covers 63% of US import. China only 10.9%.
------

COVID presented a different situation. US allow lower quality glove from China to satisfy the demand during COVID. But the OVERSUPPLY is coming mainly from Malaysia. So the ASP problem is OVERSUPPLY WORLDWIDE. But demand is slowly recovering (Kossan and Harta revenue is increasing) as oversupply depletes.

If there's concern about "flooding" the market with gloves, we should look at Topgloves instead. They are the biggest producer in the world. Not China. And TopGLove is losing money and their demand is far from their 2019 demand. They won't be flooding anytime soon.

My bet is on Kossan and Harta. Their export to US will be advantageous to them when tariff hit.

28/05/2024 6:00 PM
mf Dow Jones

Dow Jones Industrial Average

38,796.13

-273.46

0.69%
29/05/2024 1:52 AM
KimSua No concern on the glove fundamentals. Better to wait for a clear uptrend tmrow or fri
29/05/2024 7:22 PM
Lukey_Greek When the price is right, even owner of the company & ABRDN will also dispose their shares. Good luck long term investor.
29/05/2024 8:51 PM
Lukey_Greek Long way to learn on understanding this wave fr FA perspective.
29/05/2024 8:58 PM
Why_ Lim Kuang Wang buying not TS Lim Kuang Sia?
29/05/2024 10:29 PM
Why_ 2024-05-29

Insider

MR LIM KUANG WANG (a substantial shareholder) acquired 100,000 shares on 28-May-2024.

2024-05-29

Insider

MR LIM KUANG WANG (a substantial shareholder) acquired 250,000 shares on 27-May-2024.
29/05/2024 10:29 PM
mf Dow Jones

Dow Jones Industrial Average

38,534.16

-318.70

0.82%

Nasdaq

NASDAQ Composite

16,976.85

-43.02

0.25%
29/05/2024 10:41 PM
Chipee ARBDN still owns 137,392,700 shares. They sold 291,400 + 251,400 = 542,800..... 0.395% of the total shares.
It's the same with TS Lim Kuang Sia and other owners .... Like I said they are doing some profit taking like day traders. Which is ok. Value traders or FA can do the same too.

Just that TS Lim Kuang Sia is the CEO of the company. Show some confidence of the company la. He represents the company. Don't be a pariah CEO. THis kind of profit also want to take when he is already a billionaire. 🙄

Sometimes FA hold bcoz they are long term. Just bcoz they are long doesn't mean they didn't prone a bit to take profit. IT all depends on how many share you hold and risk management. Market is jittery bcoz US is already at all time high. IS it gonna crash or just 5% correction ... nobody knows.


Lukey_Greek

When the price is right, even owner of the company & ABRDN will also dispose their shares. Good luck long term investor. Long way to learn on understanding this wave fr FA perspective.

30/05/2024 2:47 AM
Chipee Last time b4 2008/2009 .... when US market down, other markets can be up. It's like investors leaving one market and move to another. NOW all markets are following US market. THeir consequence affect other markets too fearing another Financial Crisis.
30/05/2024 2:55 AM
5354_ https://theedgemalaysia.com/node/712277
30/05/2024 5:32 AM
Chipee YEah @5354_ I answered

Repost:

What happened to gloves in Msia will also happen in China. After China lockdown is over.
1) China gloves start making losses.
(Intco Medical made OPERATING losses in 2022 (-30,467) and 2023 (-100,958).)
2) China small gloves players got eliminated.
3) Big China gloves start rationalize (reduce) their production hence impairment losses.
4) They start selling at higher ASP.

As for the article from Edge https://theedgemalaysia.com/node/712277
"Hong Leong Investment Bank Research (HLIB Research), which is neutral on the sector, shares the sentiment, commenting that Chinese players will start to gradually increase their presence in European and Asian markets to reduce US orders."

Are they saying China gloves are not already in European and Asia market now and the years before covid ? Of course they are. In order to compete is only to reduce price and gain market share in Europe and Asia. China cannot afford to do that. They are already making losses. China has no choice but REDUCE PRODUCTION because CHINA LOCKDOWN IS OVER.

Problem with analysts on China is ... China production is BIG. Look at this data from World Bank 2019
Malaysia Export 401519 Gloves 2019 World 742,626,000 Kg
Thailand Export 401519 Gloves 2019 World 109,800,000 Kg
China Export 401519 Gloves 2019 World 73,646,800 Kg

China is only 9.9% of Malaysia production.
------
DATA on US import of gloves in 2019
United States Import 401519 Gloves 2019 World 410,269,000 Kg
United States Import 401519 Gloves 2019 Malaysia 258,422,000 Kg
United States Import 401519 Gloves 2019 Thailand 68,443,400 Kg
United States Import 401519 Gloves 2019 China 44,971,200 Kg

Malaysia covers 63% of US import. China only 10.9%.
------

COVID presented a different situation. US allow lower quality glove from China to satisfy the demand during COVID. But the OVERSUPPLY is coming mainly from Malaysia. So the ASP problem is OVERSUPPLY WORLDWIDE. But demand is slowly recovering (Kossan and Harta revenue is increasing) as oversupply depletes.

If there's concern about "flooding" the market with gloves, we should look at Topgloves instead. They are the biggest producer in the world. Not China. And TopGLove is losing money and their demand is far from their 2019 demand. They won't be flooding anytime soon.

My bet is on Kossan and Harta. Their export to US will be advantageous to them when tariff hit.
30/05/2024 8:37 AM
Chipee So who is going to Kossan AGM today?
30/05/2024 8:45 AM
Chipee Trump got convicted. But he can still run for president.
Democrats just hammer in their final nail to their coffin.

https://www.politico.com/news/2024/05/30/can-trump-still-be-president-00160433
31/05/2024 6:36 AM
KimSua The US Cpe inflation is within expectation and Ecb most likely to cut rate in June. Tuesday will be a good time to bottom pick. Good luck
01/06/2024 1:53 PM
Chipee ARBDN is back :)
05/06/2024 9:20 AM
Chipee Demand is more than Supply. Price should go up.
Best Buy 24010 / 152
Best Sell 4002 / 62
05/06/2024 3:17 PM
xiaoeh Chipee
other than Kossan
do u buy other glove counters as well?
05/06/2024 3:40 PM
Chipee No. I'm only invested in Kossan. But Harta forum is more active... so I kepoh there. 😅
To me Kossan should catch up with Harta in price.
05/06/2024 5:07 PM
xiaoeh so do i....
i mean kepo...😂
05/06/2024 6:25 PM
Chipee 😂😂😂

xiaoeh

so do i....
i mean kepo...😂
05/06/2024 6:54 PM
ChandranG ARBDN is coming back and buying in Kossan 😀
05/06/2024 9:37 PM
yifeng Kossan is back
06/06/2024 1:00 PM
Iamnotasifu Kossan should at least catch up Harta Price , such underrated with highest Cash on hand and highest PAT among the Big 4
06/06/2024 6:14 PM
KimSua Money is coming back in to klse. Better sharpen your technicals. Fundamentals will take a back seat, swing it well and good luck
08/06/2024 4:25 PM
ChandranG 1 ringgit more to go for Kossan to catch up Harta, Iamnotasifu 😄
10/06/2024 11:11 AM
Chipee Yeah. I was waiting for this. Foreign funds coming in would be a good opportunity to trim down.
Higher lows make it hard to swing trade on this. Unless there big news on gloves. I think next lookout is TopGlove results.
10/06/2024 11:22 AM
Chipee I made a quick calculation on the data of Kossan selling at $16 per 1000 gloves. Info from here:
https://www.nst.com.my/business/corporate/2024/03/1031853/kossan-rubbers-sales-may-remain-stagnant-first-half-2024-says#:~:text=The%20firm%20added%20that%20Kossan,FY23%20to%20enhance%20operating%20margins.
10/06/2024 3:06 PM
Chipee I made a quick calculation on the data of Kossan selling at $16 per 1000 gloves.

Q1 2024:
Revenue = Rm 451,625,000 = $96,090,425 (at 4.7 xchange rate)
Gloves sold per 1000 unit = $96,090,425/$16 = 6,005,652

Conclusion on SPECULATION:
Kossan can sell at $17.20. China is selling at $16 too but there's a 7.5% tariff which equals to $17.20.
Meaning Kossan could had make:-
Revenue: 6,005,652 x $17.20 = $103,297,207 x 4.7 = Rm485,496,875
Extra profit at same cost: Rm485,496,875 - Rm 451,625,000 = Rm33,871,875

As ASP improve, Kossan can sell at higher price. Harta's ASP is $21. So Kossan has much room to move up.
Just by taking ASP of $18, Kossan can easily make extra Rm56.5 million.
Rm56.5 million + Rm22.2million (Q1 24 PBT) = Rm78.7million.
Which is similar to 2019 quarterly earning.

On Utilization Rate.
Also, 6,005,652,000 per quarter means 24 billion per year. Kossan annual capacity is 32 billion in 2019.
24/32 = 75% utilization rate. This number could be lower if follows 2024 annual capacity but I don't have the number.

I see improvement. I'm holding and hope to see better Q2 results as ASP is stabilizing.
10/06/2024 3:23 PM
KimSua Great insight. Need confirmation of their operation efficiency and with utilzation improving to above 80%. KOSSAN should surpass Harta soon.
11/06/2024 12:40 PM
Chipee @KimSua you can read Kossan automation here from The Edge:
https://kossan.com.my/media/pdf/2021/MediaCoverage-TheEdgeDigitalEdge-KossanDigitalTransformation_20210329.pdf
11/06/2024 7:19 PM
ChandranG Kenanga continue to short gloves 😑

https://www.enanyang.my/%E8%B4%A2%E7%BB%8F%E6%96%B0%E9%97%BB/%E8%A6%81%E4%B9%88%E4%BA%8F%E9%92%B1%E8%A6%81%E4%B9%88%E8%B5%9A%E5%B0%91-%E6%89%8B%E5%A5%97%E8%82%A1%E4%BB%8D%E9%81%AD%E6%B3%BC%E5%86%B7%E6%B0%B4
12/06/2024 4:36 PM
KimSua Chipee thanks for the information. We know each quarter results will be better than the last for at least end of the year and next year US will start transition their supplier away from China.
13/06/2024 7:21 PM
Chipee KimSua, Welcome. Lets Huat Ah!!!!
13/06/2024 8:39 PM
KimSua Cup and handle forming, high chance for a breakout next week to test recent high. The cup depth is small and handle volume is small as well. Let's see how, good luck
14/06/2024 11:26 AM
paperplane UOB latest report TP- Harta 3.92, Kossan 2.73, TopGlov- 1.28
18/06/2024 11:36 AM
KimSua Quad witching hour this friday. Trade with care, expect high volume surge and violatility due to options expiry.
19/06/2024 7:29 AM
Chipee Top Glove spectacular result. Finally profitable. ASP is improving.
19/06/2024 1:36 PM
ChandranG Sell on good news today?
19/06/2024 2:58 PM
ChandranG Sell on good news today?
19/06/2024 2:58 PM
Chipee Now I'm observing 28 June. USTR is collecting opinions from their industry players on the tariff hike. I'm hoping they want it to be earlier than 2026. Old and bigger players may want to kill their small/new players in US. These new players has been "disturbing" their profit using China's gloves. We'll see. Can only hope.
19/06/2024 3:44 PM
Chipee Let the data sink in for them. We will see the next week. As Kimsua highlighted, options expiring.

ChandranG

Sell on good news today?
19/06/2024 3:51 PM
Lukey_Greek In the AGM, Mr Lim mentioned that the worst was over, however the recovery is more like a L shape, instead of V. Utilisation rate was about 60% only for Apr & May.
19/06/2024 8:13 PM
Lukey_Greek The boost of USA tariff of 25% in 2026 will only have temporary effect, as China will gain more market share in Europe. The supply & demand will be rebalanced as a whole. The ASP will more or less back to 2025 level after that.
19/06/2024 8:28 PM
Chipee If you have not seen the news, RIGHT parties are winning in Europe. We will see the result in UK and France election results next month. If they take over the governments, rest assure more tariff on China. I doubt China can take over Europe market.
19/06/2024 11:30 PM
Mini2021 TP 3 by year end
20/06/2024 10:03 AM
Chipee Anwar announce to join BRICS, KLSE just sold off. Could it be the reason?
20/06/2024 1:39 PM
Albukhary When Kossan new HQ will be officially launch?
Everyday I passed by it, such a nice building, very ESG style of building, especially if you compare it to Top Glove Tower.
21/06/2024 2:16 PM
Mini2021 Another 30 days.... Kossan Result.... Another 40 days Harta Result
23/06/2024 7:26 AM
ChandranG Typically it will release its Q2 result by end of July
24/06/2024 6:22 PM


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