$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD)
Research by MIDF
Neutral - TP RM1.89

"Yet to Reach Supply-Demand Equilibrium"

• Maintain NEUTRAL with a lower target price of RM1.89 post the 2QFY24 results announcement
• Slow demand recovery led to 1HFY24 earnings disappointment of RM52.0m only
• Near-term demand outlook remains challenging which is further compounded by competitive pricing from its oversea peers
• On the flip side, there is little risk of the group to be in a loss-making position again

Analyst:
Foo Chuan Loong, Martin
martin.foo@midf.com.my