Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining its Neutral recommendation on ANN JOO RESOURCES BHD [] with a fair value of RM2.75. It said on Thursday, April 29 Ann Joo's annualised 1QFY10 net profit of RM41.5 million marginally beat its estimates but was lower than street estimates. Improving global steel demand in tandem with the recovering general economy and higher average selling prices (ASP) led to delivery tonnage nearly doubling, with revenue soaring 115.3% y-o-y and 71.5% q-o-q. OSK Research said the gradually improving demand and average selling prices (ASP) plus stocking up activities towards the end of the reporting quarter contributed to the good profit. "While we expect a mismatch between cheap material and higher ASP to push up its 2Q profit, we remain cautious on the outlook in 2H, especially given the lack of a demand-push factor to date. "Uncertainty still clouds the fate of its mini blast furnace (BF) despite management's assurance that it's on schedule for commissioning in 3Q. That said, we maintain our NEUTRAL recommendation with a fair value of RM2.75," it said.
Company Name: ANN JOO RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining its Neutral recommendation on ANN JOO RESOURCES BHD [] with a fair value of RM2.75. It said on Thursday, April 29 Ann Joo's annualised 1QFY10 net profit of RM41.5 million marginally beat its estimates but was lower than street estimates. Improving global steel demand in tandem with the recovering general economy and higher average selling prices (ASP) led to delivery tonnage nearly doubling, with revenue soaring 115.3% y-o-y and 71.5% q-o-q. OSK Research said the gradually improving demand and average selling prices (ASP) plus stocking up activities towards the end of the reporting quarter contributed to the good profit. "While we expect a mismatch between cheap material and higher ASP to push up its 2Q profit, we remain cautious on the outlook in 2H, especially given the lack of a demand-push factor to date. "Uncertainty still clouds the fate of its mini blast furnace (BF) despite management's assurance that it's on schedule for commissioning in 3Q. That said, we maintain our NEUTRAL recommendation with a fair value of RM2.75," it said.
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