KUALA LUMPUR: OSK Research is keeping its NEUTRAL call Ann Joo Resources but revises its fair value higher to RM2.89 after lifting its price-to-earnings ratio (PER) valuation to 9.0 times from 8.0 times and maintains its1.38 times book value per share on FY11 numbers.
It said on Tuesday, Jan 18 that from its visit to Ann Joo Resources last week, it gathered that the company may benefit from escalating steel prices by riding on its huge inventory pile, which was last reported to be RM1.2bn.
'However, the quantum may be limited and the numbers already included in our original estimates.
'We also think that some quarters may be disappointed with the prolonged delay on its mini Blast Furnace project and its 4QFY10 results, may come in below market expectation,' it said.
It said on Tuesday, Jan 18 that from its visit to Ann Joo Resources last week, it gathered that the company may benefit from escalating steel prices by riding on its huge inventory pile, which was last reported to be RM1.2bn.
'However, the quantum may be limited and the numbers already included in our original estimates.
'We also think that some quarters may be disappointed with the prolonged delay on its mini Blast Furnace project and its 4QFY10 results, may come in below market expectation,' it said.
No comments:
Post a Comment