Kossan Rubber Industries Bhd (-ve)
SHARES in Kossan Rubber Industries Bhd (fundamental: 2.1/3, valuation: 0.5/3) triggered our momentum algorithm yesterday for the third time this year.
The counter closed four sen higher at RM7.05 with some 2.69 million shares traded compared with its 200-day average volume of 386,334 shares.
The group, which is the world’s second-largest manufacturer of disposable latex gloves, said recently it is going all out to complete an overhaul of its plants for automation by 2020.
The group aims to slash its headcount per million pieces — which stands about three now — to 1.6 in five years.
Kossan’s new plant in Jalan Meru, Klang — which is equipped with high-speed dipping technology with a high degree of automation — is expected to commence production in a matter of months.
At the current share price, Kossan is currently trading at 4.11 times its book value.