KUALA LUMPUR, May 11 (Bernama) -- Rubber product manufacturer Kossan Rubber Industries Bhd is set to benefit from higher average selling prices (ASPs) amid Middle East-driven raw material volatility, particularly in the second quarter of financial year 2026 (2Q FY2026).
In a research note today, Public Investment Bank Bhd said an “episodic ASP recovery” would improve 2Q FY2026 earnings, with generic glove ASPs rising to US$29 per 1000 pieces (pcs) from US$26 per 1000 pcs year-on-year (US$1=RM3.91).
The bank said it has maintained the forecast for Kossan Rubber Industries for FY2026 to FY2028.
It viewed the company’s FY2026 earnings outlook as “defensive” despite a challenging industry backdrop, supported by disciplined cost control, a strong balance sheet and a gradual shift towards higher-value products.
“However, structural cost pressures are likely to intensify in the second half of 2026 due to higher feedstock costs.
“We believe the group’s automation upgrades and cleanroom glove expansion should help cushion margin pressure over the medium term,” the bank said, hence, maintaining its “outperform” call for the company.
-- BERNAMA
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