KUALA LUMPUR (Nov 21): The Employees Provident Fund (EPF) has resurfaced as a substantial shareholder of Kossan Rubber Industries Bhd after buying 5.39 million shares in the rubber glove manufacturer on Nov 16 to raise its stake to 5.09%.

Kossan, in its filing with Bursa Malaysia on Tuesday, did not reveal the price at which EPF bought the shares. But based on Kossan’s closing price of RM1.58 on Nov 16, the fund could have acquired the shares for about RM8.52 million.

The 5.09% stake, comprising 129.86 million shares, makes the pension fund the third-largest shareholder in Kossan, after Kossan Holdings (M) Sdn Bhd (35% stake) and Abrdn PLC (5.867%), Bloomberg data showed.

On Aug 12 last year, EPF ceased to be a substantial shareholder of Kossan after disposing of 20.49 million shares at that time.

Last week, Kossan announced that it made a net profit of RM40.97 million for its third quarter ended Sept 30, 2023 (3QFY2023), after two consecutive loss-making quarters when net loss totalled RM27.55 million.

Its 3QFY2023 net profit was also 76.14% higher than the RM23.26 million it made in 3QFY2022 - despite revenue dropping 28% to RM403.48 million from RM560.52 million - thanks to better cost controls and lower raw material costs in its glove business, as well as the sale of higher margin infrastructure products at its technical rubber products division.

Kossan’s share price closed unchanged at RM1.60 on Tuesday, giving the group a market capitalisation of RM4.09 billion. 

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