July 11, 2011

'Buy' call on Ajiya stays: OSK Res



OSK Research is maintaining its "buy" recommendation on Ajiya Bhd but has lowered the stock's fair value to RM2.17 from RM2.25 previously.

In its Investment Research Daily today, OSK said slower demand, rising material cost and customers' shift to lower margin products might continue to dampen the company's first half earnings.

"Nonetheless, the company is making progress inexpanding its production line to capture opportunities in supplying building materials for Economic Transformation Programme (ETP) projects moving into the second half or later in 2012," it said.

Ajiya's principal activities are in the manufacture of steel and glass building material products. -- Bernama

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