Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research said although ANN JOO RESOURCES BHD []'s annualised 1Q11 net profit came in at 109% of its forecast, it was largely in line.
The research house said on Friday, May 27 that it expected the 2H to be slower due to start-up costs when Ann Joo's blast furnace is fully operational.
'But at 89.6% of consensus estimates, it will disappoint the market. As expected, no dividends were declared. Billet-scrap spreads have edging up gradually from US$160/mt in Jan 2011 to US$186/mt in May, which bodes well for 2Q.
'We maintain our estimates and RM3.74 target price, still based on 13.05x CY12 P/E, a 10% discount to our target market P/E of 14.5x. Ann Joo remains a TRADING BUY and could be catalysed by higher selling prices and improved local demand due to more CONSTRUCTION [] starts. CY11 gross yields are now 6.0%, the highest in the building materials sector,' CIMB Research said.
Company Name: ANN JOO RESOURCES BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research said although ANN JOO RESOURCES BHD []'s annualised 1Q11 net profit came in at 109% of its forecast, it was largely in line.
The research house said on Friday, May 27 that it expected the 2H to be slower due to start-up costs when Ann Joo's blast furnace is fully operational.
'But at 89.6% of consensus estimates, it will disappoint the market. As expected, no dividends were declared. Billet-scrap spreads have edging up gradually from US$160/mt in Jan 2011 to US$186/mt in May, which bodes well for 2Q.
'We maintain our estimates and RM3.74 target price, still based on 13.05x CY12 P/E, a 10% discount to our target market P/E of 14.5x. Ann Joo remains a TRADING BUY and could be catalysed by higher selling prices and improved local demand due to more CONSTRUCTION [] starts. CY11 gross yields are now 6.0%, the highest in the building materials sector,' CIMB Research said.
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