TA Securities downgrades Kossan to 'hold' following run-up in share price

TheEdge Fri, Feb 23, 2024 08:19am - 2 months View Original


KUALA LUMPUR (Feb 23): TA Securities has downgraded Kossan Rubber Industries Bhd to 'hold' at RM2.02, with a target price of RM2.15, following the recent run-up in its share price.

In a note on Friday, the research house said Kossan reported a 2.2% quarter-on-quarter (q-o-q) decline in core net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023), with its FY2023 core profit at RM69.4 million.

TA Securities said FY2023 core profit accounted for 104% of the house's full-year estimate and 141% of the consensus forecast.

“Moving into 1QFY2024, we expect the core performance to be flat q-o-q, due to higher natural gas and raw material costs.

“Thereafter, we believe that its 2QFY2024 bottom line will improve q-o-q, as the industry is able to pass on the cost increase to customers,” the research house said.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

KOSSAN 2.110

Comments

Login to comment.