Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: HLG
HONG Leong Investment Bank Bhd Research (HLIB Research) has initiated coverage on the steel sector with an overweight rating and said fundamentals of the steel players are likely to improve by end-4Q2010.
It attributed this to improvement in the near-term steel consumption outlook; concerns on oversupply would likely ease further in the near term; and prices of key steelmaking inputs (in particular, scraps and iron ore fines) likely to have bottomed.
HLIB Research said its top picks are Ann Joo Resources and CSC Steel.
"Ann Joo Resources (Buy, TP RM3.18) ' Likely to be the first to benefit from the steel price upswing, mini blast furnace will sharpen its competitive edge and diversify its product range.
"CSC Steel (Buy, TP RM2.17) ' Backed by a strong parent company (ie China Steel), an attractive yield play within the steel sector," it said in a note on Wednesday, Oct 13.
Company Name: ANN JOO RESOURCES BHD
Research House: HLG
HONG Leong Investment Bank Bhd Research (HLIB Research) has initiated coverage on the steel sector with an overweight rating and said fundamentals of the steel players are likely to improve by end-4Q2010.
It attributed this to improvement in the near-term steel consumption outlook; concerns on oversupply would likely ease further in the near term; and prices of key steelmaking inputs (in particular, scraps and iron ore fines) likely to have bottomed.
HLIB Research said its top picks are Ann Joo Resources and CSC Steel.
"Ann Joo Resources (Buy, TP RM3.18) ' Likely to be the first to benefit from the steel price upswing, mini blast furnace will sharpen its competitive edge and diversify its product range.
"CSC Steel (Buy, TP RM2.17) ' Backed by a strong parent company (ie China Steel), an attractive yield play within the steel sector," it said in a note on Wednesday, Oct 13.
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