RHB RESEARCH INSIGHTS – PICK OF THE DAY: SOUTHERN STEEL

RHB RESEARCH INSIGHTS – PICK OF THE DAY: SOUTHERN STEEL

 

 

RHB

Tuesday, 03 December 2013

Bursa Malaysia Trade Statistics – 02 Dec 2013
Participation(%) Bought(RM m) Sold(RM m) Net(RM m)
Institutions 58.0 880.5 820.4 60.1
Retail 20.8 286.4 321.7 -35.3
Foreign 21.2 298.6 323.4 -24.8
Total 100.0 1,465.5 1,465.5 0.0
Source: theSundaily – Business
Daily Recommendations
hold hold FAIR VALUE MYR 1.07 Malaysia Steel Works
hold hold FAIR VALUE MYR 5.15 Alliance Financial Group
hold hold FAIR VALUE IDR 4,600.00 XL Axiata
hold hold FAIR VALUE MYR 9.61 Lafarge Malayan Cement
buy buy FAIR VALUE MYR 11.90 Tenaga Nasional
hold hold FAIR VALUE MYR 0.76 Lion Industries Corp
hold hold FAIR VALUE MYR 1.04 Ann Joo Resources
hold hold FAIR VALUE MYR 1.57 Southern Steel
Featured Reports
Southern Steel – Higher Electricity Tariffs Dim Outlook
neutral FAIR VALUE: MYR 1.57

We cut SBB’s FY14/FY15 estimates by 30%/53.6% following the 18.8% increase in electricity tariff. The untimely tariff revision is also likely to delay the company’s new strip mill from making a significant contribution. Thus, we maintain our NEUTRAL rating on SBB, with our FV trimmed slightly to MYR1.57 based on 0.71x FY14 P/BV, or -1 SD of the stock’s historical 5-year P/BV. Tariff hike….

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Latest Reports for the Day
Malaysia Steel Works – Setback From Electricity Tariff Hike

MSW’s focuses on steel bars, which enjoy healthy demand growth on top of the limited threat from imports. However, there is no …

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Alliance Financial Group – No Let-up In Loan Growth Yet

During AFG’s analyst briefing yesterday, management remained optimistic that c. 13% loan growth for FY14 is achievable. This …

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Basic Materials – Electric Shock

The 18.8% electricity tariff hike from Jan 2014 is an unpleasant surprise to power-hungry steel and cement producers in Peninsular Malaysia. As…

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Sime Darby – Enters Into BMW Market In Brisbane

Sime Darby (SIME) has entered into agreements to acquire two companies and three properties in Brisbane, Australia, which own and operate BMW, MINI and Lamborghini dealerships …

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Lafarge Malayan Cement – Electricity Tariff Hike May Zap Sentiment

The 18.8% electricity tariff hike does not bode well for LMC, as power is its major production cost. We pare FY14F earnings by 9.5%, assuming…

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FKLI & FCPO:FKLI: Improving Sentiment,FCPO: Above The Uptrend Line

The FKLI was previously in a correction mode, retracing from the 1,828-pt level to the 1,775-pt level…

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