Company Name: LION INDUSTRIES CORPORATION
|Research House: RHB||Price Call: HOLD||Target Price: 1.28|
RHB Research raised the call on steel manufacturer Lion Industries Corporation Berhad to "market perform" from "underperform" based on demand from the local Malaysian sector and an easing of cost pressure.
In a note to investors on Friday, RHB also raised the fair value of Lion Industries to RM1.28 from RM1.12, citing the chances for the company to exit a high-risk RM3.2 billion blast furnace project with the entrance of foreign investors.
News on local steel companies Perwaja Holdings Bhd and Hiap Teck Venture Bhd potentially securing iron ore mining concessions may also increase share prices within the sector, RHB said.
"We continue to hold the view that sustained share price performance of local steel players still hinges on a much more stable and improved global economic outlook," said the research house. -- Reuters