Monday, April 9, 2018

FW: AmBank Research - CSC Steel: Poised for recovery in FY19 BUY, 9 Apr 2018




CSC Steel: Poised for recovery in FY19                                    BUY


We cut FY18F, FY19F and 20F earnings by 30%, 5% and 5% respectively for CSC Steel Holdings, but maintain our FV of RM1.83 as we roll forward our valuation base year to FY19. Our FV is based on 10x revised FY19F EPS, in line with the average forward PE of major global key steel producers. We maintain our BUY recommendation.


We came away from a recent visit to CSC feeling cautious on the company’s prospects. The outlook for local cold rolled steel (CRC) product market is unfavourable at present, largely due to the influx of cheap imports since end-2017. We believe the dumping activities have been driven by expanded CRC production capacity upon completion of several new integrated steel mills in the region, coupled with the slight premium pricing of CRC products in Malaysia.



Others :

Axiata: Catalyst from edotco listing proposal requests    BUY





Plantation Sector: News flow for week 2 – 6 April             NEUTRAL




Stocks On Radar: N2N Connect, YTL Corp., Formosa Prosonic, JHM Consolidated




US: Wages grew in March




Technology Sector: Raising selling prices due to weaker dollar

Oceancash Pacific: Plans new production line in Thailand

Red Sena: Deadline to acquire asset coming up





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