Top Stories
Company Update | Kossan Rubber Industries (KRI MK/BUY/RM1.03/Target: RM1.26)
2026 earnings are on track to chart a decent 11% yoy growth, with 2Q-3Q26 results lifted by better volume sales and higher ASP due to the Iran war. While we expect ASP to normalise in 4Q26, demand recovery and an improving utilisation rate will support earnings growth in 2027-28. Competition from China glovemakers remains intense, but we opine that Kossan’s specialty gloves production expansion and healthy balance sheet still offer decent capital upside. Maintain BUY and target price of RM1.26.
What’s Inside
Company Update | SD Guthrie (SDG MK/BUY/RM6.62/Target: RM7.25)
SD Guthrie is unlocking landbank value through the RM798.3m disposal of 1,021.9 acres of Bukit Kerayong Estate, which will be developed into a next-generation heavy industrial park through its 50:50 JV with Sime Darby Property. Coupled with a visible land monetisation pipeline and supportive CPO outlook, we believe SD Guthrie is well positioned for earnings diversification and valuation re-rating. We maintain BUY with a higher target price of RM7.20.
Market Spotlight
- The FBMKLCI dipped marginally by 6.18pt (-0.36%) to close at 1,713.76 yesterday as a lack of fresh catalysts kept investors on the sidelines.
- US stocks were higher after the close on Wednesday, as gains in the consumer services, telecommunications and financials sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Formosa Prosonic Industries | FOR MK
Trading Buy Range: RM0.97-0.98
Lay Hong | LAY MK
Trading Buy Range: RM0.245-0.25
Hup Seng Industries | HSI MK
Trading Buy Range: RM0.97-0.98
Top Stories
Company Update | Kossan Rubber Industries (KRI MK/BUY/RM1.03/Target: RM1.26)
2026 earnings are on track to chart a decent 11% yoy growth, with 2Q-3Q26 results lifted by better volume sales and higher ASP due to the Iran war. While we expect ASP to normalise in 4Q26, demand recovery and an improving utilisation rate will support earnings growth in 2027-28. Competition from China glovemakers remains intense, but we opine that Kossan’s specialty gloves production expansion and healthy balance sheet still offer decent capital upside. Maintain BUY and target price of RM1.26.
What’s Inside
Company Update | SD Guthrie (SDG MK/BUY/RM6.62/Target: RM7.25)
SD Guthrie is unlocking landbank value through the RM798.3m disposal of 1,021.9 acres of Bukit Kerayong Estate, which will be developed into a next-generation heavy industrial park through its 50:50 JV with Sime Darby Property. Coupled with a visible land monetisation pipeline and supportive CPO outlook, we believe SD Guthrie is well positioned for earnings diversification and valuation re-rating. We maintain BUY with a higher target price of RM7.20.
Market Spotlight
- The FBMKLCI dipped marginally by 6.18pt (-0.36%) to close at 1,713.76 yesterday as a lack of fresh catalysts kept investors on the sidelines.
- US stocks were higher after the close on Wednesday, as gains in the consumer services, telecommunications and financials sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Formosa Prosonic Industries | FOR MK
Trading Buy Range: RM0.97-0.98
Lay Hong | LAY MK
Trading Buy Range: RM0.245-0.25
Hup Seng Industries | HSI MK
Trading Buy Range: RM0.97-0.98
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/b0eb5c9a-646b-4c58-a731-61902a719509, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
