Re: Ann Joo Resources
Posted: Thu May 30, 2019 9:50 am
not vested
A temporary setback
Earnings to pick up in 2H19, maintain HOLD
1Q19 results fell short on lower domestic sales volume, depressed ASP and higher raw material costs.
We cut our FY19E-21E core net profit by 43-44%.
Accordingly, our TP is also reduced by 13% to MYR1.34 based on revised 8.8x FY19 PER.
While increasing raw materials cost remains a concern, we believe an improving domestic steel demand outlook, higher export tonnage and unutilised balance of investment tax allowance for
its blast furnace installed in 2011 could cushion the impact. HOLD.
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... d9e5f5.pdf
A temporary setback
Earnings to pick up in 2H19, maintain HOLD
1Q19 results fell short on lower domestic sales volume, depressed ASP and higher raw material costs.
We cut our FY19E-21E core net profit by 43-44%.
Accordingly, our TP is also reduced by 13% to MYR1.34 based on revised 8.8x FY19 PER.
While increasing raw materials cost remains a concern, we believe an improving domestic steel demand outlook, higher export tonnage and unutilised balance of investment tax allowance for
its blast furnace installed in 2011 could cushion the impact. HOLD.
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... d9e5f5.pdf