Check out 'The Gruffalo' - a new tale in rhyme. I sat watching kids being entertained of the age group you mention recently. The reader delighted them with the reading, it has repetition that they could get the hang of and join in with. They made gruffalo masks afterwards and went hunting high and low for the Gruffalo outside amongst the trees etc...they loved the whole shebang.

It has recently been turned into a stage dramatisation and gets rave reviews across the UK.