-->

Type something and hit enter

On


PETALING JAYA: The higher average selling price (ASP) of rubber gloves during the Covid-19 pandemic has analysts upbeat about Kossan Rubber Industries Bhd’s earnings.

TA Securities analyst Tan Kong Jin, who is reiterating a “buy” call on the stock with a target price of RM10.30, said for its upcoming third quarter (3Q) 20 results, the brokerage expects the company to post another record net profit of more than RM300mil with significant earnings growth of more than 100% quarter-on-quarter (q-o-q) and year-on-year (y-o-y).

Kossan Rubber is scheduled to release its 3Q results on Nov 19. Tan attributes this to the higher sales volume of around 10% and higher ASP of 30%.

Subsequently, the research house also expects the company’s 4Q20 net profit to jump significantly to more than RM650mil on the back of the higher ASP, which is expected to rise by more than 45% q-o-q.

“We expect financial year (FY) 2020 net profit to surge by 417.2% to RM1.16bil, which is significantly higher than the consensus estimates. Our FY20 earnings projections suggested that Kossan’s earnings would be back-end loaded this year.

 

https://www.thestar.com.my/business/business-news/2020/10/21/rising-glove-prices-spell-good-news-for-kossan