Return of Investment of KOSSAN since IPO in March 1996

If you have bought 1,000 share of Kossan on 15/03/1996 at IPO price RM 2.80 with capital of RM 2,800.00 and keep the shares for 19 years and now (17/06/2015) you will have 29,952 shares of Kossan worth RM 200,079.36 with accumulated dividend of RM 11,170.35.

Therefore the total return since IPO in March 1996 is RM 211,249.71 with CAGR in 19 years of 25.55% (vs DiGi of 24% and Public Bank of 19.5%) or return of investment [(RM211,249.71 - RM2,800.00) / RM2,800.00 X 100%] of 7,445% (vs DiGi of 3,189%).

If the bonus issues and share split are not taken into consideration, the current stock price of Kossan would be:

RM 6.68 x 2 x 2 x 2 x 1.2 x 1.2 x 2.6 = RM 200.08.

Looking at its excellent track record and potential future growth in glove indsutry, I initially bought 1,000 shares of Kossan on 17/06/2013 at RM 4.34 with capital of 4,340.00 and currently (17/06/2015) I have 2,000 shares worth RM 13,360.00 with dividend received of RM 440.00. The total return is RM 13,800.00 with CAGR in exactly 2 years is 78.32% or ROI of 393%.

Including the financial year of 2014, Kossan is in its 19th year of unbroken profitability record. The management plans to increase its glove production from 22 billion pieces currently to 50 billion in 2020. This capacity expansion will certainly ensure the company to have continuing long term and sustainable growth in its rubber products business. 

17 June 2015