Highlights of the day
§ Kossan Rubber Industries (4QFY11 Results): In line (Maintain BUY, TP: RM4.02) [download report]
§ Kossan Rubber Industries (4QFY11 Results): In line (Maintain BUY, TP: RM4.02) [download report]
4QFY11 net profit came in at RM23.8m (0.9% q-o-q; -18.6% y-o-y). This brings full-year FY11 net profit to RM91m (-19.4% y-o-y) which was within our and consensus expectations. We like Kossan because of: (i) its undemanding valuations. Kossan is trading at 9.5x FY12 EPS compared to Top Glove’s 22x. (ii) The company is moving up the value chain by offering higher margin surgical and clean room gloves; and (iii) product mix contains less natural rubber glove which is sensitive to movements in latex price. Maintain BUY with RM4.02 target price based on 11x FY12 EPS, in line with its historical average.
Other reports
Malaysian news
§ Maxis: 4Q earnings up 47.5% to RM900m, 16 sen dividend
§ Telekom Malaysia: Plans capital repayment
§ Samchem Holdings: FY12/11 financial results
§ SP Setia: Sabah ‘hot spot’ in the making
§ Berjaya Corp: Berjaya founder to list 7-Eleven and MOL Global
§ KPJ: Eyes higher medical tourism revenue
§ MBM: Seeks assembly partner
§ KEuro: To divest stakes in Trinity, Canal City?
§ QSR, KFC: Yum! Brands concerned over deal
§ Automotive: Car dealers remain concerned
§ Banking: Enough liquidity to meet needs
§ Healthcare: Medical tourism in the pink of health
§ Power: Tenaga, Sime, 1Malaysia Devt, CI Holdings bid for Prai power
§ Oil & Gas: Petronas, Gas Malaysia sign supply deal
§ Toll: PLUS to privatise SILK and Litrak?
§ Economy: Exports to pick up in 2H
Global news
§ US: Purchases of new homes exceeded forecasts in January
§ US: Consumer sentiment reaches one-year high
§ Europe: German economy contracted in 4Q as exports fell
§ Europe: ECB may allot EUR470bn in 3-year crisis loans
§ Europe: G-20 snubs Germany on IMF help as Europe funds deferred to April
§ South Korea: Manufacturers’ confidence is near 30-month low
§ Singapore: Production shrinks most since May on lunar new year
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