Posted by manutdchampion > 2013-12-12 11:23 | Report Abuse

yes kossan is a good stock

Posted by Firebird > 2013-12-12 12:22 | Report Abuse

Certainly it has the potential, looking at its expansion plans going forward

Posted by Lay Eng Teoh > 2013-12-12 15:08 | Report Abuse

muscle, what do you mean?

Posted by stockcrazy > 2013-12-12 15:18 | Report Abuse

the current EPS have to divided by 2? As the EPS is base on the quantity share before Bonus Issues.....
please clarify me if i am wrong....

Posted by stockcrazy > 2013-12-12 15:25 | Report Abuse

Firebird, what do you think for Supermx?

Posted by stockcrazy > 2013-12-12 15:49 | Report Abuse

6.84....

Posted by Firebird > 2013-12-12 15:56 | Report Abuse

Stockcrazy, i have sold off my Supermx long ago, to focus on Harta and Kossan. Supermx slower in price movement, i guess, just an opinion

Posted by stockcrazy > 2013-12-12 16:55 | Report Abuse

oic.... in between, do you know what is the capacities of kossan, harta and supermx?

Posted by Fortunebull > 2013-12-12 17:51 | Report Abuse

Damn! My long forgotten big fat margin love! Don't worry, I put my money on you soon! This one no need to promote! Very quiet performer!

Posted by Invest1818 > 2013-12-13 10:21 | Report Abuse

Harta is RM7++, Topglove is RM5++,with such strong financial fundamental and continuous expansion from Kossan, I would not think its share price will be less then Harta and TG.. Gloves industry are value stock unless one day there is replacement for gloves. Just my opinion.

Posted by Firebird > 2013-12-13 10:47 | Report Abuse

Its one of the core stocks that I hold for long term. Besides gloves, Kossan is in rubber products also which there are expanding as well.

Posted by Invest1818 > 2013-12-13 12:26 | Report Abuse

rubber price is diminishing compare a couple of years ago, I knew as I'm in the rubber industry, Peak price on raw latex sky rocketed back in year 2009 and currently back to norm. Projected further reduction in near future as Africa is commencing to plant further rubber trees which might cause a big impact over SEA rubber prices as the global demand increases from the Africa region. Just my own opinion on seeing the future prospect of it.

Posted by wwwcomment > 2013-12-13 13:04 | Report Abuse

Rubber price drop means go to kossan or the other way round? Lower raw material cost? Higher profit margin?

Posted by Invest1818 > 2013-12-13 15:56 | Report Abuse

latex and nitril is the core raw mats for kossan, if latex price goes down means higher profit. Rubber cant produce gloves is latex that produces gloves. The impact on the electricity tariff which everyone worries about is actually only causes short term impact. People will still continue to use gloves as is a necessity in the healthcare line for safety. Life still goes on and business still needed to be done. From my field on rubber production industries, I knew utility expenses is not a major expenses even though is one of a concern overhead whereas the major ones that worries them most is the raw latex commodity price. I assume with the lower latex price trend , the coy will perform even better in the next coming quarter. haven't yet to include their recent expansion on boosting up their sales volume from the new land acquisition. Why I presume a continuous drop on rubber prices is that Thailand plays a vital role on controlling rubber prices and with the current political situation in Thailand, how do you think the price will move. Without govt. intervention the price will move on with the demand and supply mechanism. China is the main consumption of rubber and is slowing down especially from the Tyre industries. Hence major datas shown rubber price is moving towards a downtrend.Solely my own opinion for sharing.

Posted by Firebird > 2013-12-13 16:02 | Report Abuse

Invest1818, Wellcal use similar raw materials to produce their hoses? So that would be good too for Wellcal, rite?

Posted by Invest1818 > 2013-12-13 16:30 | Report Abuse

Firebird, I cant jump to conclusion that all rubber products counter will be at good position but they should be moving towards an uptrend with such good pricing prediction on their raw mats support, it is still dependable on the coy financial fundamentals. I didn't study about Wellcal so I don't dare to give opinion. I'm just looking at the potential on gloves industry (a worldwide needs item)and with the current support of lower raw mats which comforts me on my investment to it. Firebird, please don't forget about competitiveness as well. I've no idea about hoses even I produce rubber products as I know competitiveness plays a vital role. You cant play with the selling price in order to remain competitive, you have to rely on the cheaper raw mats and your internal cost containment to survive. My solely opinion

Posted by Firebird > 2013-12-13 16:43 | Report Abuse

Invest1818, thanks for sharing generously, I could learn more about this industry. Yes, being competitive is one of the keys too as there are quite a few big glove companies here in Malaysia. Each one of the are going to have higher production volumes, and one that can do so with better efficiency and lower cost will have the edge. Thanks

Posted by Invest1818 > 2013-12-13 16:58 | Report Abuse

Welcome Firebird, just hope our investment can realized from it as you know our current economic, everything is moving up. We need passive income to counter it and investing on good fundamental counters helps. Please do share here if anyone have any good recommendation counters. Harta is my best choice but is too high , hence I choose kossan instead with its strong fundamental continuous growth and strong management team as well. Its share price is sitting at the lowest among Harta and TG. I believe it will move back to its origin price before its bonus issue. Hopefully the Fed tapping will not strive a major impact to its but somehow for long run, this is definitely a value counter to look into.

Posted by Firebird > 2013-12-13 17:11 | Report Abuse

Yes we all will need to have some other forms of income. The increase in prices of everything is affecting our lives. I choose Kossan due to its strong management and fundamentals, not that I personally know anyone in there but from what they are doing. Action speaks louder. If there is any major price retreat, I would add on one more gloves counter, Harta, as I had dispose just recently. That would be all for my exposure in the gloves industry. Cant have all or too many as I have other counters, diversification in industry haha. Thanks

Posted by heavyth > 2013-12-16 10:20 | Report Abuse

At what price to buy ??? PE now 9.587 !

Posted by Joel > 2013-12-16 20:34 | Report Abuse

RHB TP is at rm4.13, but today Kenanga TP is rm4.46.
Begin next year 2014 is good future and Good fortune to Kossan.
Due to :
1.Potential margins expansion from new gloves production lines.
2. Kossan will build new lines once its capacity utilisation hit 80% instead of 90% as in the past.
3.Superior net profit growth of 32% and 16% in FY14E and FY15E respectively.
4.Kossan’s unprecedented earnings growth over the next two years underpinned by rapid capacity expansion.
5.The fact that Kossan is not just a rubber glove play but a bet on its TRP division, which is growing over the past few quarters.

Posted by Firebird > 2013-12-16 20:57 | Report Abuse

CIMB 3QFY13 Results Note Report on the 24Nov13, has a outperform call all with a Target price of Rm4.34.

Posted by heavyth > 2013-12-16 21:09 | Report Abuse

Thanks !!

Posted by Joel > 2013-12-17 23:38 | Report Abuse

worth to buy bcos Kossan's share price r
below rm5.00.
Hold long term to gain high profit.
Kossan is a good stable further growth campany.

Posted by Invest1818 > 2013-12-18 22:07 | Report Abuse

Joel good to hear you in the same ship ^^.

Posted by Joel > 2013-12-18 23:56 | Report Abuse

my remiser adviced me to hold & dun play contra in Kossan.

Posted by Invest1818 > 2013-12-19 10:15 | Report Abuse

Joel, did he say why? Kossan is not for speculate is to hold for longer terms for steady and gradually growth.

Posted by Joel > 2013-12-19 11:39 | Report Abuse

1. Kossan, the campany net profit exceed RM100,000.000.
2. Campany made solid profit every year.
3. Dividend paid.
4. Good management team.
5. Expansion in 2014.

Posted by Invest1818 > 2013-12-19 14:52 | Report Abuse

Joel-U left out 2 more point ,6. Latex price predicted on continuous declining trend, 7. US Fed tap strengthening USD against RM which benefits exporter like Kossan.

Posted by Joel > 2013-12-20 11:57 | Report Abuse

TODAY RHB RESERACH OUT
MAINTENANCE CAL BUY IN KOSSAN
TP :rm4.52

We came away from our recent meeting with management feeling more
optimistic on Kossan’s (KRI) outlook. We lift our FY14 estimate by 4.7%
to reflect the group’s improved production efficiency and stronger
contributions from its higher-margin products. Maintain BUY, with our
FV moved higher to MYR4.52 (from MYR4.13), in view of KRI’s healthy
capacity expansion plans.

1. Expansion to boost earnings. KRI recently acquired a 9.26-acre land
parcel in Klang, Selangor earmarked for capacity expansion. Once the
acquisition is completed by 1QFY14, it plans to build 20 new production
lines by end-2014.
1.1This will lift its total installed production capacity by 5-
6bn pieces annually to 27bn pieces (ongoing expansion will boost
capacity to 22bn pieces by May 2014).
1.2 We believe this would bolster
KRI’s production and earnings moving forward as it targets for the new
lines to be commissioned latest by 1HFY15.

2.Expanding TRP segment. We gather that KRI is looking to expand its
technical rubber product (TRP) division in Indonesia – it plans to begin
construction of its new plant there by 1HFY14.
2.1 We are upbeat on the
prospects of its TRP division given lower production costs and the
favourable operating environment.
2.2 As of 9MFY13, its TRP division
chalked up positive sales growth of 8.2% y-o-y, with sales of its
cleanroom gloves soaring >100% y-o-y.

3. Lifting FY14 estimate. Our FY13 estimates are unchanged. However
we raise our FY14 net profit estimate by 4.7% after raising FY14 EBIT
margin to 14% (from 13.4%) to reflect the group’s enhanced production
efficiency and greater contributions from higher-margin products such as
cleanroom gloves.

4. Maintain BUY.
We continue to like KRI given its:
i) strong earnings
visibility from its planned capacity expansion over the next two years,
ii)
balanced product mix (53% nitrile and 47% natural rubber), which allows
it to tap into both market segments. We maintain our BUY call, but raise
our FV to MYR4.52 (from MYR4.13) in view of KRI’s healthy capacity
expansion plans. Our new FV is pegged to a higher 16x (from 15.3x)
FY14 EPS, which is in line with the sector’s average weighted FY14 P/E of
16.4x.

Posted by Invest1818 > 2013-12-21 14:20 | Report Abuse

Good call. Value counter.

Posted by Joel > 2013-12-23 10:56 | Report Abuse

On 20.12.2013
Another research house was gave TP to Kossan.

KOSSAN RUBBER INDUSTRIES BERHAD - Exceeding Expectations
Date: 20/12/2013

Source : PUBLIC BANK
Stock : KOSSAN Price Target : 4.73 | Price Call : BUY
Last Price : 4.00 | Upside/Downside : +0.73 (18.25%)


Kossan‟s results and share price performance continue to reflect its sustained growth momentum. To capture the Group‟s positive performance, we are revising our TP upwards to RM4.73 from RM3.61 premised on i) change in gradual product mix from natural rubber latex (NR) to nitrile (SR), whereby SR margins are higher, and ii) increase in dividend payout expected in tandem with higher earnings, thus factored in gradual step up from 45% (FY14F) to 50% (FY15F). Using our dividend discount model (DDM), our new TP reflects a 14.3x PER which we believe is reasonable. We believe Kossan‟s Outperform recommendation will be buoyed by i) continuing increase in capacity expansion to c.26bn gloves by 2017 expanding on its nitrile offering and ii) improved product efficiency through R & D which has proven to improve its bottom-line margins illustrated in 3QFY13‟s results.

Gloves. Revenue may continue to face issues of lower selling price from lower raw material price, however the change of product variants should sustain and gradually improve margins. The Group‟s efforts of strategically improving product efficiency and product mix to aid in the growth of earnings has proven to offset any top-line hindrances.

Clean-room gloves. Will support Kossan‟s gloves growth from better utilisation of newly-installed facilities which resulted in higher revenue. PBT for this division also improved as of 3QFY13 from a loss in the preceding year‟s corresponding quarter from higher efficiency and cost control. We assume this trend will carry on positively.

Technical rubber products (TRP), has successfully tapped into the infrastructure and automotive products segment, reflected through increased sales from these product types. The commissioning of Kossan‟s TRP plant in Indonesia by 4QFY14 to cater for automotive industry products including panels, rubber engine guards, etc. would boost its revenue contribution further from current c.10%, from what we understand.

Increasing nitrile offering for higher margins. The Group‟s product mix currently consists of 55% synthetic rubber (nitrile) and 45% natural rubber (latex). Going forward the Group aims to target an 80% SR and 20% NR ratio production, as SR gloves yield better margins.

Outperform at TP of RM4.73. Our revised TP reflects the Group‟s growth momentum coupled with results materialisation of its strategies, this we deem is deserving of our new valuation. Remaining conservative, our forecast only considers a 80% capacity utilisation rate, whereas the company‟s actual utilisation is operating c.90%.

Source: PublicInvest Research - 20 Dec 2013

Posted by Joel > 2013-12-23 11:30 | Report Abuse

Is a chance to accumulate at below rm4.00.

Posted by Invest1818 > 2013-12-23 16:50 | Report Abuse

waiting for the push , seems someone accumulating at RM4

Posted by Invest1818 > 2013-12-24 11:16 | Report Abuse

everyday buyer overweight seller but still no momentum yet to cross over RM4.

Posted by Joel > 2013-12-24 16:42 | Report Abuse

When the time has come, Kossan will go to rm4.10 - rm4.25.

Posted by Joel > 2013-12-26 12:17 | Report Abuse

Good campany like Kossan, the share price is stable.

Posted by Invest1818 > 2013-12-26 13:10 | Report Abuse

waiting for it to cross over RM 4

Posted by Invest1818 > 2013-12-26 23:19 | Report Abuse

^^ Moving, ride higher kossan, fly closer to TG and Harta.

Posted by Joel > 2013-12-27 08:49 | Report Abuse

the price climb & climb sta D to rm5.00 or above.

Posted by Joel > 2013-12-27 11:36 | Report Abuse

好公司就是好公司，稳固成长。

Posted by Invest1818 > 2013-12-27 14:20 | Report Abuse

Just a matter of time to reach RM5.00, high potential counter.

Posted by Joel > 2013-12-27 15:29 | Report Abuse

Cheer, invest1818

Posted by Invest1818 > 2013-12-27 21:32 | Report Abuse

Cheers Joel..Lets hope the uptrend continue all the way

Posted by Joel > 2013-12-27 21:57 | Report Abuse

YES! But I only bought 10,000units since first day split.

Posted by Joel > 2013-12-30 11:47 | Report Abuse

Hope the price will close rm4.20 today.

Posted by racktorick > 2013-12-30 13:44 | Report Abuse

I sold at 3.60 after split, shall I buy back ?

Posted by samshing > 2013-12-30 13:45 | Report Abuse

Will go 6.00 within 6 months.

Posted by Joel > 2013-12-30 13:50 | Report Abuse

samshing, r u sure up to at rm6.00?
But i hope so.
even at rm5.00 i also satisfies.
Buy back, I think is no problem.

Posted by samshing > 2013-12-30 13:51 | Report Abuse

Based on competitor analysis.