''KUALA LUMPUR: RHB Research Institute has a Market Perform recommendation on LION INDUSTRIES CORPORATION [] Bhd (LICB) with an indicative fair value is RM1.80 based on 'sum-of-parts' basis
It said on Wednesday, March 15 that Lion Industries Corporation Bhd (LICB) is the largest integrated long steel producer in Malaysia, with total annual billet production capacity of 3.05m tonnes.
RHB Research said the basis of its investment case for LICB are: 1) Largest long steel producer with dominant market share in Malaysia; 2) A value play as stakes in listed entities are worth more than its market capitalisation; and 3) Stronger balance sheet compare to peers.
'However, its recently proposed blast furnace project increases potential investment risk. The project is still pending approval from minority shareholders. If the project gets rejected, this would serve as a re-rating catalyst for LICB's share price,' it said.
It said on Wednesday, March 15 that Lion Industries Corporation Bhd (LICB) is the largest integrated long steel producer in Malaysia, with total annual billet production capacity of 3.05m tonnes.
RHB Research said the basis of its investment case for LICB are: 1) Largest long steel producer with dominant market share in Malaysia; 2) A value play as stakes in listed entities are worth more than its market capitalisation; and 3) Stronger balance sheet compare to peers.
'However, its recently proposed blast furnace project increases potential investment risk. The project is still pending approval from minority shareholders. If the project gets rejected, this would serve as a re-rating catalyst for LICB's share price,' it said.
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