Latest news with #KossanRubberIndustriesBhd
New Straits Times
25-05-2025
- Business
- New Straits Times
Kossan shielded from US tariff impact by specialty glove focus
KUALA LUMPUR: Kossan Rubber Industries Bhd is expected to be less affected by the tariff as it focuses on specialty gloves which fetch better margins, said Kenanga Research. The research house said the current uncertainty over the US tariffs have also resulted in increasing interest from US buyers on Malaysian players as a viable alternative supply source. Overall, the firm said it does not see a fundamental view change on the gloves sector at these tariff levels. "With the slash in tariffs, this still implies tariffs on Chinese glove makers at 80 per cent in 2025 and a further 130 per cent in 2026. "Buyers have been diversifying sources as a risk management strategy, opting to purchase from other countries including Malaysia," it said in a note. Nevertheless, Kenanga Research said the news on tariffs reduction by the US on Chinese glove makers is negative news flow for local players. "We believe Kossan is expected to be less affected as it focuses on specialty gloves which fetch better margins. "Moreover, with its disciplined cost structure and continuous efforts to streamline operations, the group's profitability is expected to be less impacted by any potential orders slowdown," it said. Meanwhile, Kenanga Research said Kossan's first-quarter net profit for financial year 2025 met expectations, rising 13 per cent to RM36 million. This accounts for 22 per cent and 23 per cent of the firm's and consensus full-year net profit forecasts, respectively. No dividend was announced for quarter, which was in line with expectation, Kenanga Research said. The firm has maintained its earnings forecasts with a target price of RM2.70. "We believe that in terms of PBV valuation, its share price is trading at a level commensurate with pre-tariff imposition. Reiterate 'outperform'," it added.
Yahoo
23-05-2025
- Business
- Yahoo
Kossan Rubber Industries Bhd First Quarter 2025 Earnings: EPS: RM0.014 (vs RM0.012 in 1Q 2024)
Revenue: RM487.4m (up 7.9% from 1Q 2024). Net income: RM35.7m (up 13% from 1Q 2024). Profit margin: 7.3% (up from 7.0% in 1Q 2024). The increase in margin was driven by higher revenue. EPS: RM0.014 (up from RM0.012 in 1Q 2024). Our free stock report includes 1 warning sign investors should be aware of before investing in Kossan Rubber Industries Bhd. Read for free now. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Medical Equipment industry in Asia. Performance of the market in Malaysia. The company's share price is broadly unchanged from a week ago. What about risks? Every company has them, and we've spotted 1 warning sign for Kossan Rubber Industries Bhd you should know about. 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.
The Star
22-05-2025
- Business
- The Star
Kossan expects cautious recovery in global glove market in 2025
KUALA LUMPUR: Kossan Rubber Industries Bhd expects to navigate a cautiously improving global glove market in 2025, supported by steady restocking activity and a gradual structural recovery in demand. The glove maker, however, noted that the outlook for the coming months remains mixed, with softer short-term demand expected—particularly in the U.S.—due to uncertainty surrounding ongoing tariff policy shifts. Kossan said the temporary reduction of U.S. tariffs on Chinese-made medical gloves (from 145% to 80% for a 90-day period effective May 12, 2025) has added to the market's uncertainty. 'Average selling prices (ASP) in the U.S. market are expected to decline slightly due to lower raw material costs and intensified competition. 'Meanwhile, Chinese glove manufacturers are aggressively offloading its inventory into non-U.S. markets, contributing to broader shifts in market dynamics,' it said in a filing with Bursa Malaysia. Despite the headwinds, Kossan believed that structural shifts in global supply chains and a stronger focus on quality, compliance, and sustainability would favour Malaysian manufacturers over the medium to long term. In the first quarter ended March 31, Kossan posted a 13.3% higher net profit of RM35.6mil, or earnings per share of 1.40 sen compared with RM31.4mil, or 1.23 sen in the year-ago quarter. Its revenue for the quarter rose to RM487.3mil versus RM451.6mil previously. Kossan remained focused on improving efficiency through automation, digitisation, and upskilling its workforce to manage rising costs and protect margins. The group said its growth strategy continued to centre on sustainability, guided by its Sustainability Blueprint 2035, with clear goals for low-carbon operations, responsible sourcing, and social compliance. 'Backed by a robust balance sheet and an agile production model, the group is well positioned to deliver sustainable growth and long-term value amidst a recovering yet dynamic global landscape,' it added. Kossan expects the technical rubber products division to deliver satisfactory results in FY25, while the cleanroom division is forecasted to perform steadily with confident expectations of satisfactory results.
Malaysian Reserve
22-04-2025
- Business
- Malaysian Reserve
Steep tariffs won't reverse global glove oversupply, Top Glove is still 'Sell' at AmInvestment
A LOCAL investment bank has retained its 'Underweight' rating on the glove sector as it believed the recent imposition of steep tariffs on China-made gloves by the US government, while directionally positive, will not be sufficient to reverse the structural oversupply challenges facing the global glove industry. 'Despite near-term optimism over potentially firmer average selling price (ASP) in the US market, we remain cautious as supply dynamics, cost inflation, and strategic shifts by Chinese players continue to weigh on sector fundamentals,' AmInvestment Bank Bhd said in a report released yesterday. Despite the recent selldown, it has maintained 'Underweight' on Kossan Rubber Industries Bhd, with a 52-week target price (TP) of RM1.60) and 'Sell' on Top Glove Corp Bhd (TP: 68 sen). It has maintained its 'Hold' call on Hartalega Holdings Bhd with a lower TP of RM2.30, down from RM3.00 previously as it believed that the intensifying competition in the US market might erode its premium pricing over the medium to long term. At the end of yesterday's trade, Kossan closed at RM1.80, Hartalega at RM2.22 and Top Glove at 86 sen. Elaborating on the structural oversupply, the report noted that although the US government's imposition of a 145% tariff on all Chinese goods – rising to 195% for medical gloves in 2025 and 245% in 2026 and 170% for non-medical gloves – may initially appear supportive of ASP for non-Chinese producers, it believed this impact will be short-lived and insufficient to meaningfully shift the sector's demand-supply balance. It said the global glove market remains structurally oversupplied, a hangover from the aggressive capacity expansions during the pandemic boom. 'Most manufacturers, particularly in Malaysia and China, have not meaningfully scaled back capacity, even as demand normalises at pre-COVID levels. With total global installed capacity still significantly above annual demand, pricing discipline is unlikely to return in the near to medium term,' it said. — TMR
Yahoo
23-02-2025
- Business
- Yahoo
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) 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.
