Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Ann Joo's 3Q net profit plummeted to RM10.4 million but this was well within its estimates.

In its research note issued on Monday, Nov 29, it said the poor numbers were attributed to lower steel prices and demand, which were further worsened by escalating material costs.

'While we see an improvement in 4Q, we think the recovery may be limited. Compounded by another delay in commissioning its blast furnace and the lack of major earnings surprises, the stock's expensive valuation versus its peers warrant no change in our NEUTRAL recommendation, with its target price revised up slightly to RM2.76 on rolling over its valuation to FY11,' it said.

OSK Research pervious target price was RM2.64 while the last traded price was RM2.86.