Bursa Malaysia Stock Watch

HwangDBS: Southern Steel - Persistent cost pressure

kltrader
Publish date: Thu, 02 Feb 2012, 04:45 PM
kltrader
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Southern Steel; Buy; RM2.05
Price target: RM2.60; SSB MK
Persistent cost pressure

RM5.5m net loss in 2QFY12 was larger than our and consensus estimates, hurt by high operating costs. Cut FY12F/13F earnings by 21%/16% after imputing higher scrap costs. Maintain Buy and RM2.60 TP pegged to 1.2x FY12 NTA.

Source: HwangDBS Research - 2 Feb 2012
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