February 25, 2011

ANNJOO - Ann Joo fairly valued at RM2.89: OSK

Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: OSK

OSK says that Ann Joo Resources Bhd's FY2010 net profit of RM120m was below its and street estimates as it slipped into the red in Q4.

While OSK expects the company to benefit from huge inventory bought at lower cost and a potential pick-up in steel demand moving into H1 FY2011, it thinks the market may have priced in the potentially upbeat performance.

OSK also suspect that some quarters may be disappointed with the
prolonged delay in its mini Blast Furnace (BF) project.

These factors, together with poor earnings visibility beyond six months, prompt OSK to keep its 'neutral' recommendation on the company and its fair value of RM2.89. - Reuters

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