Kossan Rubber Industries Bhd (KLSE:KOSSAN) Just Reported, And Analysts Assigned A RM2.43 Price Target
There's been a notable change in appetite for Kossan Rubber Industries Bhd (KLSE:KOSSAN) shares in the week since its annual report, with the stock down 18% to RM1.91. Revenues came in 3.7% below expectations, at RM1.9b. Statutory earnings per share were relatively better off, with a per-share profit of RM0.047 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kossan Rubber Industries Bhd after the latest results.
View our latest analysis for Kossan Rubber Industries Bhd
Taking into account the latest results, the consensus forecast from Kossan Rubber Industries Bhd's 16 analysts is for revenues of RM2.24b in 2025. This reflects a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 30% to RM0.061. Before this earnings report, the analysts had been forecasting revenues of RM2.35b and earnings per share (EPS) of RM0.072 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
The consensus price target fell 6.7% to RM2.43, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kossan Rubber Industries Bhd at RM3.35 per share, while the most bearish prices it at RM1.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kossan Rubber Industries Bhd's past performance and to peers in the same industry. For example, we noticed that Kossan Rubber Industries Bhd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. So it looks like Kossan Rubber Industries Bhd is expected to grow at about the same rate as the wider industry.
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kossan Rubber Industries Bhd. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Kossan Rubber Industries Bhd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kossan Rubber Industries Bhd analysts - going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Kossan Rubber Industries Bhd has 3 warning signs (and 2 which are a bit concerning) we think you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 hours ago
- Yahoo
Aneka Jaringan Holdings Berhad's (KLSE:ANEKA) Stock Is Going Strong: Have Financials A Role To Play?
Most readers would already be aware that Aneka Jaringan Holdings Berhad's (KLSE:ANEKA) stock increased significantly by 8.0% over the past month. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Aneka Jaringan Holdings Berhad's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Aneka Jaringan Holdings Berhad is: 5.7% = RM5.8m ÷ RM103m (Based on the trailing twelve months to February 2025). The 'return' is the profit over the last twelve months. So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.06. View our latest analysis for Aneka Jaringan Holdings Berhad We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. When you first look at it, Aneka Jaringan Holdings Berhad's ROE doesn't look that attractive. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 8.4% either. Although, we can see that Aneka Jaringan Holdings Berhad saw a modest net income growth of 8.8% over the past five years. So, the growth in the company's earnings could probably have been caused by other variables. For instance, the company has a low payout ratio or is being managed efficiently. Next, on comparing with the industry net income growth, we found that Aneka Jaringan Holdings Berhad's reported growth was lower than the industry growth of 22% over the last few years, which is not something we like to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Aneka Jaringan Holdings Berhad is trading on a high P/E or a low P/E, relative to its industry. Aneka Jaringan Holdings Berhad doesn't pay any regular dividends, meaning that all of its profits are being reinvested in the business, which explains the fair bit of earnings growth the company has seen. In total, it does look like Aneka Jaringan Holdings Berhad has some positive aspects to its business. Namely, its respectable earnings growth, which it achieved due to it retaining most of its profits. However, given the low ROE, investors may not be benefitting from all that reinvestment after all. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. Our risks dashboard would have the 2 risks we have identified for Aneka Jaringan Holdings Berhad. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
13 hours ago
- Yahoo
Insiders the biggest winners as UUE Holdings Berhad's (KLSE:UUE) market cap rises to RM465m
Insiders appear to have a vested interest in UUE Holdings Berhad's growth, as seen by their sizeable ownership A total of 2 investors have a majority stake in the company with 54% ownership Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A look at the shareholders of UUE Holdings Berhad (KLSE:UUE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 69% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Clearly, insiders benefitted the most after the company's market cap rose by RM49m last week. Let's take a closer look to see what the different types of shareholders can tell us about UUE Holdings Berhad. View our latest analysis for UUE Holdings Berhad Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. UUE Holdings Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see UUE Holdings Berhad's historic earnings and revenue below, but keep in mind there's always more to the story. UUE Holdings Berhad is not owned by hedge funds. The company's largest shareholder is Kok Hwa Ting, with ownership of 47%. Meanwhile, the second and third largest shareholders, hold 7.6% and 6.8%, of the shares outstanding, respectively. Wai Hin, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders own more than half of UUE Holdings Berhad. This gives them effective control of the company. Given it has a market cap of RM465m, that means they have RM319m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling. With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over UUE Holdings Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for UUE Holdings Berhad (1 doesn't sit too well with us!) that you should be aware of before investing here. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Yahoo
UEM Sunrise Berhad's (KLSE:UEMS) investors will be pleased with their splendid 147% return over the last three years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. To wit, the UEM Sunrise Berhad (KLSE:UEMS) share price has flown 137% in the last three years. How nice for those who held the stock! Better yet, the share price has risen 4.2% in the last week. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. UEM Sunrise Berhad became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It is of course excellent to see how UEM Sunrise Berhad has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at UEM Sunrise Berhad's financial health with this free report on its balance sheet. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for UEM Sunrise Berhad the TSR over the last 3 years was 147%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! We regret to report that UEM Sunrise Berhad shareholders are down 38% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 7.0%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand UEM Sunrise Berhad better, we need to consider many other factors. Even so, be aware that UEM Sunrise Berhad is showing 1 warning sign in our investment analysis , you should know about... If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
