STOCK FOCUS OF THE DAY
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
QUICK TAKE
Plantation Sector: News flow for week 2 – 6 April NEUTRAL
RETAIL RESEARCH
Stocks On Radar: N2N Connect, YTL Corp., Formosa Prosonic, JHM Consolidated
ECONOMIC HIGHLIGHT
US: Wages grew in March
NEWS HIGHLIGHTS
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
DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
****************************************************************************************************************************************************************************************************************************************************************************************************************
DISCLAIMER:
This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.
****************************************************************************************************************************************************************************************************************************************************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.