Equity Analysis /
Malaysia

MY : Kossan Rubber Industries - 50% qoq rise in ASPs in 4Q20 and 1Q21

    Walter Aw
    Walter Aw

    Research Analyst

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    CGS-CIMB
    14 January 2021
    Published byCGS-CIMB

    Kossan is an attractive proposition, as we believe its current valuation has yet to reflect its stellar earnings prospects and solid dividend yields. Given its below-industry-average ASPs, Kossan aimed to raise its ASPs by 50% qoq in both 4Q20 and 1Q21. Reiterate Add with a higher TP; 70.5% upside and CY21F div yield of 8.2%.