Thursday, August 26, 2010

OSK Research: Lion Industries FY10 net profit above forecast

KUALA LUMPUR: OSK Research said Lion Industries' FY10 net profit of RM363.5 million was 11.6% above its numbers but way above street estimates.

The research house said on Thursday, Aug 26 the impressive results were achieved on the back of improved contribution from its core steel operation as well as commendable performance from other sub-divisions.

'While we remain cautious on FY11, particularly for 1H, of a potential inverse position of higher iron ore pellet and scrap costs vis-''-vis lower selling prices possibly eroding margins, we think there would be a trading opportunity given the robust results plus the stock's still undemanding valuation compared to its peers,' it said.

OSK Research said as such, it maintained its Trading BUY recommendation, with its fair value unchanged at RM2.01.

No comments:

Post a Comment