Latest news with #RM2.70
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.
New Straits Times
12-05-2025
- Business
- New Straits Times
Pentamaster misses expectations, outlook downgraded
KUALA LUMPUR: Pentamaster Corp Bhd's first quarter net profit of RM9.9 million, which dropped 37 per cent due to weaker revenue from the medical segment, has missed expectations. CGS International Securities Malaysia Sdn Bhd said the results made up only 12 per cent of its full-year estimates and 15 per cent of Bloomberg consensus. The firm expects medical segment revenue to decline by 20 per cent in financial year 2025 (FY25) as more US-based MedTech companies may increasingly seek to re-shore their manufacturing operations. "This trend could be particularly pronounced for companies with existing facilities in the US, potentially limiting strong order wins for Pentamaster compared to our earlier expectations," it said in a note. The firm lowered its earnings forecasts for Pentamaster by 14 per cent-17 per cent for FY25-FY27 to reflect more conservative revenue growth assumptions for its equipment segment amid rising uncertainties in the automotive sector. The firm said that these uncertainties, driven by reciprocal US tariffs, could dampen demand for the group's known good die and burn-in testers. However, Pentamaster's diversification into new growth areas, such as renewable energy and high-performance computing, may alleviate the emerging challenges pertaining to the US tariff situation, added CGS International. "We expect these new segments to contribute five per cent of FY25F revenue, driven by the group's ongoing efforts to expand its sales pipeline," it said. The firm downgraded its call for Pentamaster to 'Hold' from 'Add' with a lower target price of RM2.70 following the earnings revision.
