Kossan

Date announced 18/11/2010
Quarter 30/12/2010 Qtr 3 FYE 31/12/2010

STOCK Kossan C0DE  7153 

Price $ 3.21 Curr. PE (ttm-Eps) 9.09 Curr. DY 0.80%
LFY Div 2.57 DPO ratio 12%
ROE 27.0% PBT Margin 13.8% PAT Margin 10.4%

Rec. qRev 275635 q-q % chg 7% y-y% chq 31%
Rec qPbt 38108 q-q % chg 5% y-y% chq 83%
Rec. qEps 8.93 q-q % chg -5% y-y% chq 86%
ttm-Eps 35.32 q-q % chg 13% y-y% chq 92%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 8.00 Avg. L PE 5.00
Forecast High Pr 3.61 Forecast Low Pr 2.45 Recent Severe Low Pr 2.45
Current price is at Middle 1/3 of valuation zone.

 RISK: Upside 34% Downside 66%
One Year Appreciation Potential 2% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years) 4%

CPE/SPE 1.40 P/NTA 2.45 NTA 1.31 SPE 6.50 Rational Pr 2.30



Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr

----

Kossan Q3 profit jumps on unit expansion
Published: 2010/11/18

Kossan Rubber Industries Bhd's pre-tax profit for the third quarter ended Sept 30, 2010 jumped to RM38 million from RM21 million in same quarter of 2009.

Revenue increased to RM276 million from RM210 million previously.

In a filing to Bursa Malaysia today, it said the better results were due to the expansion in the gloves division with better product mix and margin.

"The other contributor was the higher selling price in line with the increased in raw materials, it said.

Going forward, Kossan Rubber said, it was cautiously optimistic in the remaining quarter of the financial year, with demand for gloves expected to remain strong. -- Bernama


Read more: Kossan Q3 profit jumps on unit expansion http://www.btimes.com.my/Current_News/BTIMES/articles/20101118200243/Article/index_html#ixzz15ddHVyy3