Friday 29 Mar 2024
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KUALA LUMPUR (Nov 19): Kossan Rubber Industries Bhd shares rose 4.65% in early trade this morning after the group reported that its net profit rose 18.5% to RM54.15 million in the third quarter ended Sept 30 on improved performance in the gloves division.

At 9am, Kossan rose 20 sen to RM4.50 with 68,600 shares done.

Meanwhile, CIMB IB Research upgraded Kossan to “add” at RM4.30 with a higher target price of RM5.16 (from RM4.34) and said Kossan’s 9MFY18 net profit of RM141.3 million was in line with expectations, at 67% of house and consensus’ full-year estimates.

In a note Nov 16, the research house said it is expecting a stronger 4Q18F for Kossan.

“On a quarter-on-quarter basis, 3Q18 net profit rose 18.5% thanks to: i) higher glove sales, ii) lower start-up costs from new plants, and iii) higher economies of scale.

“Upgrade to Add from Hold, with a higher target price of RM5.16 (21x CY20 P/E),” it said.

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