Although there would be a dilution effect from the divestment of 20.0% stake in RHT, we expect a net positive earnings impact from boost of the tin mining business segment. Therefore, we raised our earnings forecast by 5.0-18.0% to RM 174.9m, RM203.0m and RM208.3m for FY22f-FY24f.
We retained our BUY recommendation on MSC, but with a lower unchanged target price of RM4.83 (from RM5.36) as we assigned a lower PER of 10.0x (from 13.0x) to its revised FY23f EPS of 48.3 sen. The downward revision in target PER is to reflect the softening tin prices which we cut our assumption to USD30,000/MT (from USD35,000MT) in both FY23f and FY24f.
MARKET PUNISHING MSC IN SHORTERM, LET'S CHECK AGAIN WILL D ABOVE CORPORATE EXERCISE ABLE TO BRING BACK THE PROMISED PERFORMANCE IN LONGER TERM ?
AT THIS JUNCTURE MSC 'S SHARE PRICE HAS BEEN BADLY SLAPPED TO $3.15, TRUST THE BOTTOM HAS ALMOST THERE GIVEN D TIN PROMISEABLE DEMAND OUTLOOK.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....