Equity Analysis /
Malaysia

MY : Kossan Rubber Industries - A weaker 1Q22, as expected

    Walter Aw
    Walter Aw

    Research Analyst

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    CGS-CIMB
    28 April 2022
    Published byCGS-CIMB

    1Q22 core net profit of RM90.1m (-91.7% yoy) was within expectations (30.8% of our and 26.7% of Bloomberg consensus FY22F estimates). We expect Kossan to post a 90% yoy decline in FY22F net profit, from lower ASPs, reduced sales volume and higher production costs. Reiterate Add, on valuation grounds. TP stays at RM2.05 (17x CY23F P/E).