Stock Name: CSCSTEL
Company Name: CSC STEEL HOLDINGS BERHAD
Research House: HLG

KUALA LUMPUR: Shares of CSC Steel Bhd fell in early trade on Monday, Nov 15 after it posted net loss of RM1.6 million in the third quarter ended Sept 30.

At 9.13am, it was down 7.0 sen to RM1.75 with 360,700 shares done.

The FBM KLCI fell 2.16 points to 1,497.65. Turnover was 61.79 million shares valued at RM47.60 million. There were 116 gainers, 124 losers and 128 stocks unchanged.

Hong Leong Investment Bank Research (HLIB Research) said 9MFY10 result came in below expectations, at 71.7% of its full-year forecast and 67.9% of the consensus full-year estimates.

'The 3QFY10 turned into a net loss of RM1.6 million from net profit of RM31.6 million in 2QFY10 (3QFY09: RM38.9m) on the back of lower sales volumes and selling prices; and RM10 million inventory writedown,' it said.

HLIB Research lowered FY10 net profit forecast by 13.7% on weaker-than-expected set of 3QFY10 performance. FY11-12 net profit forecasts maintained.

'No change to target price of RM2.17, based on 8x FY10 EPS of 27.2 sen.'' Maintain BUY,' it said.