Kossan Rubber to yield better output, says research group


Malaysian glove maker, Kossan Rubber Industries Bhd is expected to show  better output said Kenanga Research, (KR) the research arm of Keenanga Investment Bank.

According to KR, stronger demand, better product mix, additional capacity and the management’s expectation of the clean-room division are boosting the firm’s market performance.

It also said it will maintain its ‘outperform’ call on the company at a higher target price of RM3.64 from RM3.38 despite the marginal cut in earnings estimate.

Kossan’s nine-month financial year 2012 (9MFY12) revenue and net profit of RM916.9 million and RM74.8 million,  respectively,  were within the market expectations.

KR said it will revise its FY12 and FY13 earnings forecasts from RM113.5 million and RM122.7 million to RM105.7 million and RM116.4 million, respectively.