Wednesday, August 7, 2013

CSC Steel : 1HFY13 Results In Line (RHB)

CSC Steel
Target Price: MYR1.72
Price: MYR1.30
1HFY13 Results In Line

CSC Steel (CSCS)’s 1HFY13 earnings of MYR25.1m (+54.3% y-o-y) were in line with our and street estimates despite a sharp decline in 2Q. The poor 2Q results were mainly due to lower sales volume, narrower profit margin and a significant write down in inventories. We think the outlook for CSCS is improving although the industry remains challenging.

Maintain Trading BUY on CSCS, with our MYR1.72 FV unchanged.


• Weaker quarter but still in line. Although CSCS reported weaker numbers in 2QFY13, with net earnings of MYR10.2m (-57.1% q-o-q, -29.5% y-o-y), the overall YTD numbers were still in line with our expectations. The poor performance this quarter was mainly attributed to lower sales volume of its steel products coupled with weaker selling prices. This quarter’s bottomline was further dampened by a significant MYR9.4m write down in inventories due to the revaluing of inventories at lower cost and at net realizable value.

• Industry outlook still challenging. We still do not see any significant improvement in the steel sector as the global economy is expected to slow down on the back of the US tapering its quantitative easing policy. Furthermore, as highlighted by Management, the steel oversupply in China’s market remains serious and continues to depress prices.

• Focus on volume. With the low selling price of steel products thinning profit margin, CSCS is targeting for high volume in order to stay profitable. The Indonesian market remains its main export market due to the relatively stronger demand for steel there compared to other Asean countries.

• Maintain Trading BUY. As the results are in line with our estimates, we make no changes to our earnings forecasts at this juncture. We also keep our FV of MYR1.72, based on 0.83x FY13F BV, which is also the mean of its five-year historical trading band. Maintain Trading BUY on the back of CSCS’ improved earnings outlook despite the overall fragility of the steel market.




Source/Extract/Excerpts/来源/转贴/摘录: RHB-Research,
Publish date: 06/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock