[%phOA%] 
Research by Kenanga
Underperform - TP RM1.56

"1HFY24 Results Came in Below Consensus"

KOSSAN’s 1HFY24 results met our expectation but came in below consensus estimate. It returned to the black in 1HFY24 from a year
ago in the absence of high-cost inventory, although QoQ sales volumes weakened in 2QFY24 as we believe ASPs improved slightly. Massive overcapacity continued to weigh on the sector’s outlook. We maintain our earnings forecasts and UNDERPERFORM call but raise our TP to RM1.56 (previously RM1.48).

Analyst:
Raymond Choo Ping Khoon 
[%mrai%]

$KLSE-KOSSAN 
Research by Kenanga
Underperform - TP RM1.56

"1HFY24 Results Came in Below Consensus"

KOSSAN’s 1HFY24 results met our expectation but came in below consensus estimate. It returned to the black in 1HFY24 from a year
ago in the absence of high-cost inventory, although QoQ sales volumes weakened in 2QFY24 as we believe ASPs improved slightly. Massive overcapacity continued to weigh on the sector’s outlook. We maintain our earnings forecasts and UNDERPERFORM call but raise our TP to RM1.56 (previously RM1.48).

Analyst:
Raymond Choo Ping Khoon 
pkchoo@kenanga.com.my

$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD)