LETS JOIN KIM'S STOCKWATCH GROUP?
DATE : 09 July 2020
KOSSAN RUBBER INDUSTRIES
WHAT THEY DO?
Kossan Rubber Industries Bhd is a public listed company which has been established since 1979 with primary business in glove manufacturing followed by technical rubber and cleanroom manufacturing expertise.
Kossan is one of the largest manufacturers of latex disposable gloves in the world with an annual production capacity of 28 billion pieces and the largest technical rubber products manufacturer in Malaysia with a total compounding capacity exceeding 10,000 mt.
More than 80% of its products are exported to over 130 countries with 350 active customers mostly located in developed nations such as United States, U.K., Scandinavian Countries, Europe, China, Korea & Japan.
Kossan manufactures and offers a wide range of products including highly technical input engineered rubber products used in automotive, infrastructure, marine, aviation, rail and mining industries through its Technical Rubber Product Division and latex disposable gloves through its Glove Division. The Group operates with 20 plants (19 in Malaysia, 1 in China) and has a total workforce to approximately 6,000 comprises both local and foreign nationals. Equipped with strong manufacturing capability,
Kossan has been the preferred OEM manufacturer and business partner by many renowned MNCs for the past 2 to 3 decades. The Company is recognized for its capability in bringing to its customers various innovative products with a fair price and consistent product quality, professional business dealings and robust financial track record.
KOSSAN PRODUTCS
Kossan have 3 segmen products :-
1. Technical Rubber Products
KIM INSIGHTS
All of us knew that Golve counters has move up a lot and why we still writing this blog to share with all of you? It is important for you not to miss this great opportunity to join the party for KOSSAN. We believe KOSSAN can move even higher as a lot of Investment Bank had just updated the TP to RM14. Believe it or not it will hit Kim's TP soon.
About a couple months ago, we have seen that Malaysian stocks are set to enter bull territory as glove makers extend their record rally. The country is home to the world’s biggest glove makers Top Glove and Hartalega , which have surged in recent months due to rising demand for protective equipment during the global coronavirus pandemic.
However, the hottest sector which is gloves had been warned and distracted by some of local IB’s. As we know the margin capping has been applied. I had asked my local broker house regarding this issue and the answered I got, that is because the price moves too quickly. They don’t want to have non-performing loan. So till now I am foreseen and agreed some said the valuation of gloves at the peak and already price in currently for all gloves mostly. But I am still intrested to see incoming next quater results. I also hope the results for all gloves excellent and superb.
For now, the return of the retail investor have been the major support of the stock market rally. However, will they exit soon, as the market currently seems to be consolidating. With more retail investors participating in trading, we can expect volumes to stay, though expect herd mentality. In the longer run, second half of this year would show better prospects than first half. As I mentioned earlier a couple months ago, this gloves sector has entered the defender territory sector. Due the pandemic Covid-19 keep increasing global cases nowdays, especially US and Brazil, my predicting 10 millions cases has been hit and US with 5 millions cases coming soon. My view on this sector, can be resume again in a long-run after market consolidating finished in June.
Recently, Gloves stocks movement high volatility after margin capping imposed by IB’s. I had wrote my view before, while I read some newspapers had published an article with the title ” Malaysian banks cheaper than glovemakers as mania continues”. Since that, people are notified that glovemakers can go for long-term play investment. This my another reason for me and I foresees this sector have a big potential and still strong on demand supply.
So in my view glove stocks currently, It has been finished phase 3 consolidation and “They” are trying hard to push it down and flush all the small players. ESPECIALLY the warrant traders. They had lose too much in warrants because they are not expected too much rallies from Glovemakers.
My short points of view now as follows :-
KIM'S TARGET PRICE (latest)
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Kim & Cheah
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Created by sparta | May 08, 2024
Created by sparta | May 07, 2024