$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD)
Research by Maybank
Buy - TP RM2.57

"Expect stronger results in 2H"

Kossan’s 2Q24 core net profit of MYR27m (+7.7x YoY , +7% QoQ) was in line. We expect Kossan to report stronger earnings in 2H24 due to increased sales volume from delayed shipments in 2Q24 and higher plant utilisation rate [UR]s. We lower our FY24-26 earnings forecasts by 8% p.a. on factoring in a stronger MYR (-11% to USD). Our TP is lowered to MYR2.57 (-5sen), on an unchanged 1.7x FY26E P/B. Reiterate BUY.

Analyst:
Wong Wei Sum, CFA
weisum@maybank-ib.com