KUALA LUMPUR: CSC Steel Holdings Bhd shares declined on Monday, Aug 15 after its net profit for the second quarter ended June 30, 2011 slumped to RM6.36 million from RM31.61 million a year earlier.
At 10.30am. CSC was down three sen to RM1.50 with 79,300 shares done.
RHB Research in a note Aug 15 said CSC Steel's 1HFY11 net profit came in below expectations.
'We believe the variance against our forecast largely came from worse-than-expected margin contraction in 2QFY11 as a result of weak demand and significantly higher raw material costs.
'We are cutting our FY11-13 net profit forecasts by 7-26% largely to reflect the higher raw material costs. Indicative fair value is reduced to RM1.13 based on 8x revised FY12 EPS of 14.1 sen,' it said.
At 10.30am. CSC was down three sen to RM1.50 with 79,300 shares done.
RHB Research in a note Aug 15 said CSC Steel's 1HFY11 net profit came in below expectations.
'We believe the variance against our forecast largely came from worse-than-expected margin contraction in 2QFY11 as a result of weak demand and significantly higher raw material costs.
'We are cutting our FY11-13 net profit forecasts by 7-26% largely to reflect the higher raw material costs. Indicative fair value is reduced to RM1.13 based on 8x revised FY12 EPS of 14.1 sen,' it said.
No comments:
Post a Comment