Positive outlook for Kossan on strong greenback

KUALA LUMPUR: RHB Research remains positive on Kossan Rubber Industries Bhd even as the company faces margin compression risks due to higher operating costs.

The company is facing a gas-tariff review, and cost escalations in natural rubber and acrylonitrile prices. These factors, however, are offset by the strengthening of the US dollar against the ringgit since the company’s export sales are denominated in the greenback.