Kossan earnings forecast trimmed amid higher costs, falling prices
KUALA LUMPUR: Analysts have cut their target prices for Kossan Rubber Industries Bhd after revising down their earnings forecasts for the glovemaker.
Kossan Rubber Industries Bhd has seen its earnings forecasts trimmed by analysts amid increased costs and falling prices. Hong Leong Investment Bank reduced its target price to RM1.13 from RM1.24, while retaining a Hold recommendation. CIMB Securities lowered its target to RM1.19 from RM1.26, also keeping its Hold call. The primary reason for the revised forecasts is a significant contraction in Q3 FY26 pre-tax profit margin, caused by higher-cost inventories in production and declining average selling prices.
Additionally, analysts expect weaker earnings in Q3 FY26 due to the glove and clean-room segment, with technical rubber products and automotive segments facing uncertain markets. Overall, group earnings are anticipated to deteriorate notably in Q3 FY26.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
