KUALA LUMPUR: Steel players advanced in early trade on Monday, April 11, led by Malaysia Steel Works (KL) Bhd.
At 9.25am, Masteel was up 15 sen to RM1.55 while its warrants gained nine sen to 95 sen.
Ann Joo Resources was up 10 sen to RM3.11 while Kinsteel added 2.5 sen to 93 sen.
CIMB Research sees iron-clad prospects for Malaysia Steel Works (KL) Bhd which is on an expansion programme that is set to double its earnings to RM80 million-RM90 million by FY12.
CIMB Research said on Monday, April 11 the target is achievable as it is expanding capacity to meet rising demand from property launches and ETP infrastructure project starts.
'On P/NTA basis, the stock is cheap at 0.6x CY10, 40% below the sector. We value Masteel at 10.2x forward P/E, 30% below our 14.5x target market P/E. This works out to RM2.95, more than double its current price,' it said.
The research house said Masteel's valuation discount is wider than Ann Joo's 10%. Should it succeed in its bid for the Iskandar rail project, FY12 FD core EPS would rise by 29% to 37.4 sen, implying a value of RM3.80 or hefty upside of 170%.
At 9.25am, Masteel was up 15 sen to RM1.55 while its warrants gained nine sen to 95 sen.
Ann Joo Resources was up 10 sen to RM3.11 while Kinsteel added 2.5 sen to 93 sen.
CIMB Research sees iron-clad prospects for Malaysia Steel Works (KL) Bhd which is on an expansion programme that is set to double its earnings to RM80 million-RM90 million by FY12.
CIMB Research said on Monday, April 11 the target is achievable as it is expanding capacity to meet rising demand from property launches and ETP infrastructure project starts.
'On P/NTA basis, the stock is cheap at 0.6x CY10, 40% below the sector. We value Masteel at 10.2x forward P/E, 30% below our 14.5x target market P/E. This works out to RM2.95, more than double its current price,' it said.
The research house said Masteel's valuation discount is wider than Ann Joo's 10%. Should it succeed in its bid for the Iskandar rail project, FY12 FD core EPS would rise by 29% to 37.4 sen, implying a value of RM3.80 or hefty upside of 170%.
No comments:
Post a Comment