Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Maybank Research raised its call on Malaysia's steel products manufacturer Ann Joo Resources to "buy" from "sell" on the back of stronger demand growth in the Southeast Asian country.
"We are turning positive on Ann Joo due to pent-up local steel demand from 2H12 onwards and potential long-term high-margin vendor contract from Petronas," the broker said in a research note on Wednesday.
Ann Joo's trading arm supplies flat steel to Petronas for its fast-track oil and gas project, and is in the midst of securing a long-term vendor contract which would boost its trading revenue by RM250 million.
Maybank added that local steel supply is likely to be tight from 2013 onwards due to the roll-out of mega infrastructure projects such as LRT extensions and the Sg Buloh-Kajang MRT. Maybank raised Ann Joo's target price to RM2.20 per share from RM1.30. -- Reuters
Company Name: ANN JOO RESOURCES BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.20 |
Maybank Research raised its call on Malaysia's steel products manufacturer Ann Joo Resources to "buy" from "sell" on the back of stronger demand growth in the Southeast Asian country.
"We are turning positive on Ann Joo due to pent-up local steel demand from 2H12 onwards and potential long-term high-margin vendor contract from Petronas," the broker said in a research note on Wednesday.
Ann Joo's trading arm supplies flat steel to Petronas for its fast-track oil and gas project, and is in the midst of securing a long-term vendor contract which would boost its trading revenue by RM250 million.
Maybank added that local steel supply is likely to be tight from 2013 onwards due to the roll-out of mega infrastructure projects such as LRT extensions and the Sg Buloh-Kajang MRT. Maybank raised Ann Joo's target price to RM2.20 per share from RM1.30. -- Reuters
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