STOCK FOCUS OF THE DAY
Ann Joo Resources : Demand to pick up in 2H17 BUY
We maintain our BUY call, forecasts and FV of RM3.86 for Ann Joo Resources (AJR), based on 10x FY18F fully diluted EPS, in line with the average of its three mid-cycles’ PE multiples during Jan’12–Sep’13, Jun’05–Jun’08 and Sep’10 till now. AJR’s 1HFY17 net profit came in broadly within expectations at 54% and 60% of our and consensus full-year forecasts respectively. AJR's 2QFY17 net profit dipped by 69% and 61% for YoY and QoQ respectively to RM28.6mil.
AJR’s earnings visibility remains good underpinned by: 1) ongoing reforms structural reforms in China to curb steel production, particularly eliminating induction furnaces. This allows AJR to capitalise on the export market in Asean (which currently relies largely on steel supply from China); and 2) infrastructure projects locally to kick off in the 2HFY17 resulting in better demand for construction steel.
Others :
Hock Seng Lee : 1HFY17 hit by slower-than-expected billings BUY
Boilermech : Outlook to improve in 2HFY18 HOLD
Inari Amertron : Boosted by iris-scanning chips, additional testers HOLD
Salutica : Delay in product launch poses drag HOLD
Ta Ann Hldgs : Plantation underpins 2QFY17 performance HOLD
UMW Oil & Gas : No relief despite lower loss HOLD
ECONOMIC HIGHLIGHT
Indonesia : Incoming data to determine potential easing measures
NEWS HIGHLIGHTS
BSTEAD : Boustead Plantations plans to buy DutaLand’s Sabah plots
IGB : IGB Corp sees 41% profit jump in 2Q
SCOMI : Scomi: Oil & gas to remain core biz
HARTA : Hartalega to build three more plants
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.