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KOSS

Kossan Rubber Industries Bhd KLSE:KOSSAN Stock Report

Last Price

RM1.04

Market Cap

RM2.7b

7D

4.0%

1Y

-55.0%

Updated

28 Sep, 2022

Data

Company Financials +
KOSSAN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends5/6

KOSSAN Stock Overview

Kossan Rubber Industries Bhd, an investment holding company, manufactures and sells latex disposable gloves in Malaysia and internationally.

Kossan Rubber Industries Bhd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kossan Rubber Industries Bhd
Historical stock prices
Current Share PriceRM1.04
52 Week HighRM2.73
52 Week LowRM0.92
Beta0.48
1 Month Change0.97%
3 Month Change-21.21%
1 Year Change-54.98%
3 Year Change-50.59%
5 Year Change-38.82%
Change since IPO1,457.52%

Recent News & Updates

Aug 11
Why The 27% Return On Capital At Kossan Rubber Industries Bhd (KLSE:KOSSAN) Should Have Your Attention

Why The 27% Return On Capital At Kossan Rubber Industries Bhd (KLSE:KOSSAN) Should Have Your Attention

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business...

Shareholder Returns

KOSSANMY Medical EquipmentMY Market
7D4.0%-0.4%-2.9%
1Y-55.0%-73.0%-12.1%

Return vs Industry: KOSSAN exceeded the MY Medical Equipment industry which returned -73.4% over the past year.

Return vs Market: KOSSAN underperformed the MY Market which returned -11.4% over the past year.

Price Volatility

Is KOSSAN's price volatile compared to industry and market?
KOSSAN volatility
KOSSAN Average Weekly Movement5.6%
Medical Equipment Industry Average Movement6.1%
Market Average Movement5.3%
10% most volatile stocks in MY Market11.0%
10% least volatile stocks in MY Market2.4%

Stable Share Price: KOSSAN is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KOSSAN's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19797,000Kuang Limhttps://www.kossan.com.my

Kossan Rubber Industries Bhd, an investment holding company, manufactures and sells latex disposable gloves in Malaysia and internationally. It operates through four segments: Technical Rubber Products, Gloves, Cleanroom Products, and Others. The company offers engineered rubber products, including marine dock fenders, high damping rubber bearings, elastomeric bearings, expansion joints, panels and liners, and mechanical pot bearings, as well as floating slab track bearings, lateral bearings, and rubber wedges; EVA products primarily for the shoe industries; and custom extruded products and profiles, such as pressure sensor, solid and sponge, extruded, structural insulation, and insulator profiles for domestic, construction and civil engineering, electrical appliance, industrial, and automotive applications.

Kossan Rubber Industries Bhd Fundamentals Summary

How do Kossan Rubber Industries Bhd's earnings and revenue compare to its market cap?
KOSSAN fundamental statistics
Market CapRM2.65b
Earnings (TTM)RM883.03m
Revenue (TTM)RM3.48b

3.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KOSSAN income statement (TTM)
RevenueRM3.48b
Cost of RevenueRM1.49b
Gross ProfitRM1.99b
Other ExpensesRM1.11b
EarningsRM883.03m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.35
Gross Margin57.22%
Net Profit Margin25.36%
Debt/Equity Ratio5.0%

How did KOSSAN perform over the long term?

See historical performance and comparison

Dividends

46.2%

Current Dividend Yield

69%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is KOSSAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KOSSAN?

Other financial metrics that can be useful for relative valuation.

KOSSAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA0.5x
PEG Ratio-1.5x

Price to Earnings Ratio vs Peers

How does KOSSAN's PE Ratio compare to its peers?

KOSSAN PE Ratio vs Peers
The above table shows the PE ratio for KOSSAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.1x
SUPERMX Supermax Corporation Berhad
2.4x-72.7%RM1.8b
HARTA Hartalega Holdings Berhad
5.3x6.9%RM5.6b
TOPGLOV Top Glove Corporation Bhd
20x20.5%RM4.7b
COMFORT Comfort Gloves Berhad
0.6xn/aRM289.7m
KOSSAN Kossan Rubber Industries Bhd
3x-2.0%RM2.7b

Price-To-Earnings vs Peers: KOSSAN is good value based on its Price-To-Earnings Ratio (3x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

How does KOSSAN's PE Ratio compare vs other companies in the Asian Medical Equipment Industry?

Price-To-Earnings vs Industry: KOSSAN is good value based on its Price-To-Earnings Ratio (3x) compared to the Asian Medical Equipment industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is KOSSAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KOSSAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: KOSSAN is good value based on its Price-To-Earnings Ratio (3x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).


Share Price vs Fair Value

What is the Fair Price of KOSSAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KOSSAN (MYR1.04) is trading above our estimate of fair value (MYR0.73)

Significantly Below Fair Value: KOSSAN is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Kossan Rubber Industries Bhd forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOSSAN's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: KOSSAN's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: KOSSAN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KOSSAN's revenue (5.4% per year) is forecast to grow faster than the MY market (4.8% per year).

High Growth Revenue: KOSSAN's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KOSSAN's Return on Equity is forecast to be low in 3 years time (5.7%).


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Past Performance

How has Kossan Rubber Industries Bhd performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


57.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KOSSAN has high quality earnings.

Growing Profit Margin: KOSSAN's current net profit margins (25.4%) are lower than last year (44.4%).


Past Earnings Growth Analysis

Earnings Trend: KOSSAN's earnings have grown significantly by 57.5% per year over the past 5 years.

Accelerating Growth: KOSSAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KOSSAN had negative earnings growth (-70.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (-78.4%).


Return on Equity

High ROE: KOSSAN's Return on Equity (22.7%) is considered high.


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Financial Health

How is Kossan Rubber Industries Bhd's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KOSSAN's short term assets (MYR3.0B) exceed its short term liabilities (MYR442.5M).

Long Term Liabilities: KOSSAN's short term assets (MYR3.0B) exceed its long term liabilities (MYR171.0M).


Debt to Equity History and Analysis

Debt Level: KOSSAN has more cash than its total debt.

Reducing Debt: KOSSAN's debt to equity ratio has reduced from 24.7% to 5% over the past 5 years.

Debt Coverage: KOSSAN's debt is well covered by operating cash flow (763.1%).

Interest Coverage: KOSSAN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Kossan Rubber Industries Bhd current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


46.15%

Current Dividend Yield

Dividend Yield vs Market

Kossan Rubber Industries Bhd Dividend Yield vs Market
How does Kossan Rubber Industries Bhd dividend yield compare to the market?
SegmentDividend Yield
Company (Kossan Rubber Industries Bhd)46.2%
Market Bottom 25% (MY)2.1%
Market Top 25% (MY)5.3%
Industry Average (Medical Equipment)1.7%
Analyst forecast in 3 Years (Kossan Rubber Industries Bhd)3.5%

Notable Dividend: KOSSAN's dividend (46.15%) is higher than the bottom 25% of dividend payers in the MY market (2.08%).

High Dividend: KOSSAN's dividend (46.15%) is in the top 25% of dividend payers in the MY market (5.21%)


Stability and Growth of Payments

Stable Dividend: KOSSAN's dividends per share have been stable in the past 10 years.

Growing Dividend: KOSSAN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (69.4%), KOSSAN's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (92.8%), KOSSAN's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Kuang Lim (70 yo)

43.25yrs

Tenure

Dato’ Kuang Sia Lim, D.I.M.P. has been the Chief Executive Officer and Group Managing Director of Kossan Rubber Industries Bhd since February 22, 2002 and also serves as its Non-Independent Executive Direc...


Leadership Team

Experienced Management: KOSSAN's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: KOSSAN's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of KOSSAN?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders16,182,8880.6%
Institutions528,628,74120.7%
General Public727,313,76728.5%
Private Companies1,279,494,22050.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 69.27% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
48.61%
Kossan Holdings (M) Sdn Bhd
1,240,318,020MYR1.3b1.3%no data
4.6%
Employees Provident Fund of Malaysia
117,290,500MYR122.0m-24.36%0.08%
1.65%
The Vanguard Group, Inc.
42,138,486MYR43.8m0%no data
1.52%
Kumpulan Wang Persaraan
38,704,500MYR40.3m0%0.08%
1.39%
State Street Global Advisors, Inc.
35,508,400MYR36.9m0%no data
1.25%
Tiann Senn Resources Sdn Bhd
32,000,000MYR33.3m0%no data
1.03%
Public Mutual Berhad
26,204,000MYR27.3m0%0.17%
1%
Eastspring Investments (Singapore) Limited
25,393,000MYR26.4m0%0.03%
0.96%
CIMB Group Holdings Berhad, Asset Management Arm
24,447,400MYR25.4m0%1.22%
0.78%
BNY Mellon Asset Management
20,029,900MYR20.8m0%no data
0.78%
Norges Bank Investment Management
19,865,100MYR20.7m0%no data
0.72%
Urusharta Jamaah Sdn Bhd
18,284,146MYR19.0m0%0.46%
0.7%
BlackRock, Inc.
17,777,100MYR18.5m0%no data
0.69%
Great Eastern Holdings Limited, Insurance Investments
17,607,300MYR18.3m0%1.8%
0.48%
JPMorgan Chase & Co, Brokerage and Securities Investments
12,235,826MYR12.7m0%no data
0.46%
AIA Investment Management Private Limited
11,847,400MYR12.3m0%0.05%
0.42%
Dimensional Fund Advisors LP
10,737,384MYR11.2m8.84%no data
0.41%
Merrill Lynch & Co. Inc., Banking Investments
10,387,100MYR10.8m0%no data
0.3%
Morgan Stanley, Investment Banking and Brokerage Investments
7,576,350MYR7.9m0%no data
0.3%
UBS Asset Management
7,548,772MYR7.9m0%no data
0.28%
Attractive Features Sdn Bhd
7,176,200MYR7.5m0%no data
0.28%
Kuang Lim
7,018,904MYR7.3m0%no data
0.26%
TOBAM
6,676,100MYR6.9m0%0.04%
0.24%
Singular Asset Management Sdn Bhd
6,170,400MYR6.4m0%16.05%
0.18%
Swisscanto Asset Management AG
4,642,400MYR4.8m0%0.02%

Company Information

Kossan Rubber Industries Bhd's employee growth, exchange listings and data sources


Key Information

  • Name: Kossan Rubber Industries Bhd
  • Ticker: KOSSAN
  • Exchange: KLSE
  • Founded: 1979
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Implied Market Cap: RM2.654b
  • Shares outstanding: 2.55b
  • Website: https://www.kossan.com.my

Number of Employees


Location

  • Kossan Rubber Industries Bhd
  • Wisma Kossan
  • Lot 782, Jalan Sungai Putus
  • Klang
  • Selangor
  • 42100
  • Malaysia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KOSSANKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRMay 1996
KSRB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1996

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.