Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Below expectations. 9M11 core net profit of RM94m (-18% YoY) was 56% of our full-year forecast and 67% of consensus. We are turning negative on AJR: (i) sequential quarterly earnings is likely to slow on weaker export sales and margins; and (ii) we believe the global steel market is at the beginning of a contraction mode given the negative global economic outlook. We cut our 2011-13 EPS forecasts by 27-59% and downgrade Ann Joo to Sell. TP is now RM1.30 (from RM3.30) as we apply trough-cycle P/BV valuation of 0.6x (from 11x 2012 PER).
Maybank research (25 November 2011)
Click here for full report
Company Name: ANN JOO RESOURCES BHD
| Research House: MAYBANK | Price Call: SELL | Target Price: 1.30 |
Below expectations. 9M11 core net profit of RM94m (-18% YoY) was 56% of our full-year forecast and 67% of consensus. We are turning negative on AJR: (i) sequential quarterly earnings is likely to slow on weaker export sales and margins; and (ii) we believe the global steel market is at the beginning of a contraction mode given the negative global economic outlook. We cut our 2011-13 EPS forecasts by 27-59% and downgrade Ann Joo to Sell. TP is now RM1.30 (from RM3.30) as we apply trough-cycle P/BV valuation of 0.6x (from 11x 2012 PER).
Maybank research (25 November 2011)
Click here for full report
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