[%CkUG%] 
Research by RHB
Buy - TP RM2.55

"Hitting The Speed Bump; Keep BUY"

Keep BUY, new MYR2.55 TP (DCF) from MYR2.73, 25% upside. Kossan Rubber delivered a 2Q24 core profit of MYR26.8m (+7% QoQ), bringing its 6M24 numbers to MYR52m, ie 30% and 35% of our and consensus’ estimates. The below expectation results were primarily on global supply chain disruptions. We expect it to deliver stronger 2H24 earnings in view of improving customers’ acceptance levels towards ASP hikes, greater demand visibility, and stabilisation of raw material prices. Our TP incorporates a 5% ESG discount as its 2.8 ESG score is below the 3.0 country median.

Analyst:
Oong Chun Sung 
[%UDfZ%]

$KLSE-KOSSAN 
Research by RHB
Buy - TP RM2.55

"Hitting The Speed Bump; Keep BUY"

Keep BUY, new MYR2.55 TP (DCF) from MYR2.73, 25% upside. Kossan Rubber delivered a 2Q24 core profit of MYR26.8m (+7% QoQ), bringing its 6M24 numbers to MYR52m, ie 30% and 35% of our and consensus’ estimates. The below expectation results were primarily on global supply chain disruptions. We expect it to deliver stronger 2H24 earnings in view of improving customers’ acceptance levels towards ASP hikes, greater demand visibility, and stabilisation of raw material prices. Our TP incorporates a 5% ESG discount as its 2.8 ESG score is below the 3.0 country median.

Analyst:
Oong Chun Sung 
chun.sung@rhbgroup.com

$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD)