Weakening ASPs, high costs to affect Kossan

HLIB Research said rising costs will continue to exert downward pressure on Kossan’s earnings.

PETALING JAYA: Soft average selling prices (ASPs), low utilisation rate and increasing cost pressures continue to plague Kossan Rubber Industries Bhd’s growth prospects in the near term, says Hong Leong Investment Bank (HLIB) Research.

The research house said the normalising demand post-Covid-19 and existing inventories continue to dampen the ASPs of gloves.