KUAL LUMPUR: OSK Research said on the back of encouraging numbers reported by CSC Steel for the first quarter, it expects the steel-based company to likely to generate reasonable profit for FY11 despite the sketchy outlook in the 2H.
'Therefore, we retain our estimates for now and keep our fair value of RM1.97 derived from 6x EPS plus net cash per share on FY11 numbers,' it said on Monday, May 16.
'We think CSC still justifies a Trading BUY with its strong balance sheet and generous dividend payout commitment,' it added.
OSK Research said the fact that CSC possesses an experienced and sound management team are other carrots for investors to add this stock to their portfolios, on top of a 13.2% upside based on its last close to its fair value.
'Therefore, we retain our estimates for now and keep our fair value of RM1.97 derived from 6x EPS plus net cash per share on FY11 numbers,' it said on Monday, May 16.
'We think CSC still justifies a Trading BUY with its strong balance sheet and generous dividend payout commitment,' it added.
OSK Research said the fact that CSC possesses an experienced and sound management team are other carrots for investors to add this stock to their portfolios, on top of a 13.2% upside based on its last close to its fair value.
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