I bought some Kossan. Nitrile glove is gaining more shift over momentum, especially from developed countries. It is money if you have the capacity to produce more nitrile gloves. Previously I always assumed Kossan as "kiasi" glove manufacturer due to its products mix of 50:50 between latex glove and nitrile glove. It is not as daring as Hartalega, its Management seem to be too conservative. However it surprised the market with its latest aggressive expansion of plant mainly focus on nitrile glove. It is forecast to make more profits for years to come. I am convinced they will make it although its efficiency is no where close to Hartalega output of 45000 pieces of glove per hour. The price is not cheap, so can not consider as value buy, however profit increase will justify higher share price for years to come. There is no industry where production capacity is equal to money as compared to nitrile glove player. I repeat, it is MONEY if you have the capacity, the market is big enough to absorb any new nitrile glove capacity.
I also add my position of CIMB. Its Management has guided that 60% of future profit shall come from overseas (region). CIMB has never fail to deliver since 2003. Its share price is attractive currently at least to me, therefore bet big on it.
Kossan Treasury Share
2 years ago