Posted by geniusyou > 2012-08-22 16:59 | Report Abuse

Kossan Rubber Industries: Maintain Buy - Major Glove Laggard
Date: 09/08/2012

Source : MAYBANK
Stock : KOSSAN Price Target : 3.75 | Price Call : BUY
Last Price : 3.29 | Upside/Downside : +0.46 (13.98%)

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Kossan Rubber Industries: Major Glove Laggard

Maintain BUY. We expect 2Q12 net profit of around MYR24m (+10% QoQ, +15% YoY), inline with our expectation, lifting 1H12 net profit to MYR46m (+5% YoY).

Similar to its peers, Kossan is a beneficiary of latex/NBR input costs and stronger USD:MYR, but its share price has substantially underperformed its peers by 27% in the last three months.
We continue to think that Kossan is a laggard and share price may gain traction upon the release of its positive 2Q12 results. Maintain forecasts, BUY and TP of MYR3.75 (10x 2013 PER).

Posted by geniusyou > 2012-08-22 16:59 | Report Abuse

Friends, what do you think?

Posted by andyteng > 2012-08-22 17:03 | Report Abuse

supermax big bro no movement as well as kossan

Posted by Genius Y > 2012-08-22 17:04 | Report Abuse

Supermax is fairly valued. Look at Topglove, harta, they have all moved. Kossan will announce latest result next week, insider news says it is fairly better yoy.

Posted by Genius Y > 2012-08-22 17:04 | Report Abuse

Intrinsic wise this is a good company to hold for long, Lowest P/E among major glove players.