![75px-Siemens_Martin_Ofen_Brandenburg[1]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgs3KlhsQK78niepmVjpNr7bZ2nXd2B2u96Bm08v8YgaINWPSaMuoWHiyvNJMGEWbVibCWW08THpOninCZOSA8jF-D9F6VJJ5DyRn47hVjJFKoa3d1qsyLhLKE6wrAySLtL0KcMEWxzjNid/s1600-h/75px-Siemens_Martin_Ofen_Brandenburg%5B1%5D%5B3%5D.jpg "75px-Siemens_Martin_Ofen_Brandenburg[1]")
- Cheaply-priced positive fundamentals
Buy on dips. After adjusting for seasonality, 1Q10 results were within expectations, at 20% of our full-year forecast and 22% of consensus. The share price fell 23% within 3 weeks on a broad-based market sell-
down. We view this as buying opportunity given that: (i) domestic pump-priming has yet to fully play out in terms of order-flow; and (ii) long steel remains practically the only sector on Bursa to have a positive fundamental story, yet with cheap valuations (Kinsteel: 5x 2011 FD PER). Maintain Buy, with a TP of RM1.23 (8x 2011 FD PER).
by Maybank Investment Bank
The Group manufactures and trades in a complete range of long steel products used in the manufacturing, construction and infrastructure industries.
