KUALA LUMPUR: OSK Research is maintaining its Buy on Kossan and its target price for Kossan is RM5.25, based on PER of 13x FY11 EPS.
???We like the company???s equal emphasis on natural rubber and nitrile gloves, which we believe is important in weathering the current period of normalizing demand for examination gloves,??? it said on Tuesday, Oct 26.
OSK Research said it also liked the company???s strong emphasis on higher margin examination gloves.
Kossan also differentiated itself from its peers with a product mix comprising 60% natural rubber and 40% nitrile gloves.
OSK Research said having this balanced mix ensures earnings sustainability for the company as this gives it more flexibility in shifting its glove mix whenever demand shifts as it would have the production lines and distribution arms ready and markets to sell to.
???We like the company???s equal emphasis on natural rubber and nitrile gloves, which we believe is important in weathering the current period of normalizing demand for examination gloves,??? it said on Tuesday, Oct 26.
OSK Research said it also liked the company???s strong emphasis on higher margin examination gloves.
Kossan also differentiated itself from its peers with a product mix comprising 60% natural rubber and 40% nitrile gloves.
OSK Research said having this balanced mix ensures earnings sustainability for the company as this gives it more flexibility in shifting its glove mix whenever demand shifts as it would have the production lines and distribution arms ready and markets to sell to.
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