Stock Code 5060 Kinsteel (RM0.97; Buy; Price Target: RM1.30)
Visible earnings strength
• Steel prices increased 20-27% since Jan 2010. Coupled
with low locked-in cost, we expect strong profits for
2Q10 and 3Q10.
• Good opportunity to accumulate stock ahead of demand
pick up and stronger earnings on higher ASP.
• Kinsteel is trading at attractive valuations of 1.0x P/NTA
(vs Southern Steel and Ann Joo of 1.3x). Buy.
by HWDBS Vicker Research
