KUALA LUMPUR: AmResearch has downgraded CSC Steel Holdings Bhd to a HOLD with a lower fair value of RM2 a share from RM2.20'' a share, assigning a 4.6 times peg to FY11F EPS.
The research house said on Tuesday, Nov 16 this represented a 20% discount to its historical valuation ' which is justified as demand boost remains uncertain in a high-cost and cheaper import substitutes market.
'FY10F-12F EPS were also trimmed 17%-20% as we moderated our utilisation assumption from 70% to 65%. Current net cash accounts for 41% of our fair value,' said AmResearch.
The research house said on Tuesday, Nov 16 this represented a 20% discount to its historical valuation ' which is justified as demand boost remains uncertain in a high-cost and cheaper import substitutes market.
'FY10F-12F EPS were also trimmed 17%-20% as we moderated our utilisation assumption from 70% to 65%. Current net cash accounts for 41% of our fair value,' said AmResearch.
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