Stock Name: KINSTEL
Company Name: KINSTEEL BHD
Maybank IB Research upgraded Kinsteel Bhd to "buy" as it expected the steel manufacturer to turn around in its upcoming earnings result on lower iron ore cost and better local sales.
"After posting losses in the past six quarters and the inventory write-down of RM94 million in the fourth quarter of last year, we expect the company to turn profitable in the first quarter of this year," the broker said in a research note on Monday.
Maintaining a target price of 49 sen on the counter, Maybank IB said Kinsteel's margins should recover given that iron ore pellet cost had fallen by 15 percent quarter on quarter while steel average selling price had risen by 10 percent.
"Additionally, the sales volume at its downstream division (steel bars and rods) has also seen some improvement," it added.
By 9.33am, Kisteel shares dropped 1.19 percent, underperforming the Malaysian benchmark stock index that dropped 0.20 percent. -- Reuters
Company Name: KINSTEEL BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 0.49 |
Maybank IB Research upgraded Kinsteel Bhd to "buy" as it expected the steel manufacturer to turn around in its upcoming earnings result on lower iron ore cost and better local sales.
"After posting losses in the past six quarters and the inventory write-down of RM94 million in the fourth quarter of last year, we expect the company to turn profitable in the first quarter of this year," the broker said in a research note on Monday.
Maintaining a target price of 49 sen on the counter, Maybank IB said Kinsteel's margins should recover given that iron ore pellet cost had fallen by 15 percent quarter on quarter while steel average selling price had risen by 10 percent.
"Additionally, the sales volume at its downstream division (steel bars and rods) has also seen some improvement," it added.
By 9.33am, Kisteel shares dropped 1.19 percent, underperforming the Malaysian benchmark stock index that dropped 0.20 percent. -- Reuters
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