Stock Name: KOSSAN
Company Name: KOSSAN RUBBER INDUSTRIES BHD
Maintain BUY, TP: RM4.02
4QFY11 net profit came in at RM23.8m (0.9% q-o-q; -18.6% y-o-y). This brings full year FY11 net profit to RM91m (-19.4% y-o-y) which was within our and consensus expectations. We like Kossan because of: (i) its undemanding valuations. Kossan is trading at 9.5x FY12 EPS compared to Top Glove's 22x. (ii) The company is moving up the value chain by offering higher margin surgical and clean room gloves; and
(iii) product mix contains less natural rubber glove which is sensitive to movements in latex price. Maintain BUY with RM4.02 target price based on 11x FY12 EPS, in line with its historical average. (refer to report for details)
Source: ECM Newz Bits February 27, 2012, FULL PDF Report
Company Name: KOSSAN RUBBER INDUSTRIES BHD
| Research House: ECMLIBRA | Price Call: BUY | Target Price: 4.02 |
Maintain BUY, TP: RM4.02
4QFY11 net profit came in at RM23.8m (0.9% q-o-q; -18.6% y-o-y). This brings full year FY11 net profit to RM91m (-19.4% y-o-y) which was within our and consensus expectations. We like Kossan because of: (i) its undemanding valuations. Kossan is trading at 9.5x FY12 EPS compared to Top Glove's 22x. (ii) The company is moving up the value chain by offering higher margin surgical and clean room gloves; and
(iii) product mix contains less natural rubber glove which is sensitive to movements in latex price. Maintain BUY with RM4.02 target price based on 11x FY12 EPS, in line with its historical average. (refer to report for details)
Source: ECM Newz Bits February 27, 2012, FULL PDF Report
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