Top Story : CSC Steel – Strong performance to sustain into 2QFY12/10 Outperform
Results Preview
- We believe 2QFY12/10 results are likely to come in at RM32-33m, which is 5-8% higher than the previous quarter’s net profit of RM30.6m. This means 1HFY12/10 net profit is likely to come in at RM61-64m, which is 74.3-76.7% of our full-year forecast.
- Despite having anticipated a strong 2Q, we are keeping our FY12/10 net profit forecast unchanged, as we believe CSC Steel’s performance is likely to weaken significantly in 3Q.
- We expect the prices of steel products will likely stage a rebound in 4Q, as: 1) Steel consumption is seasonally stronger in 4Q; and 2) Concerns on overcapacity are likely to ease in the near term.
- Indicative fair value is RM2.10, based on unchanged 9x FY12/11 EPS of 23.3 sen.
RHB Equity 360° - 27 July 2010 (CSC Steel, KPJ; Technical: KKB)
No comments:
Post a Comment