(KRI MK/BUY/RM6.51/Target: RM6.72)

Sequential revenue rose by a commendable 14% thanks to full restoration of glove production at two older plants, favourable forex impact and qoq firmer glove ASPs. With a new plant coming on-stream next month, Kossan is set to restore its production volume growth from 2H17 onwards. Current valuations remain relatively attractive despite the 8% rise in its share price over the last two weeks. BUY on weakness. Target price: RM6.72.

Source: UOB Kay Hian Research - 26 May 2017