KUALA LUMPUR (April 20): CIMB Research has maintained its Trading Buy call on Ann Joo Resources at RM2.04 with a target price of RM2.39 and said it felt more positive about the company’s 2H12 prospects as CONSTRUCTION [] of mega projects should gain traction then.
In a note Friday, CIMB Research said a minimum wage policy will have limited direct impact on EPS and management is making good progress in its Petronas steel tender.
“A contract with Petronas to supply high-grade steel for its oil and gas projects could boost our FY12 pretax profit estimate by up to 30%.
“We maintain our Trading Buy call and target price basis of 11.3x CY13 P/E. Uncertainty about its blast furnace is why Ann Joo is not an outperform,” it said.
In a note Friday, CIMB Research said a minimum wage policy will have limited direct impact on EPS and management is making good progress in its Petronas steel tender.
“A contract with Petronas to supply high-grade steel for its oil and gas projects could boost our FY12 pretax profit estimate by up to 30%.
“We maintain our Trading Buy call and target price basis of 11.3x CY13 P/E. Uncertainty about its blast furnace is why Ann Joo is not an outperform,” it said.
