Stock on the Move : Ann Joo hits new high after safeguard duties announcement

KUALA LUMPUR : Shares of Ann Joo Resources Bhd hit a new all-time high of RM2.83 this morning as analysts foresee better earnings visibility for the company following last week's determination of safeguard duties for the import of bars and rods.



Ann Joo's stock rose 12 sen today after opening at RM2.75, or a six sen premium from last Friday's closing price of RM2.69. It hit an intraday high of RM2.83 today before paring down some gains.



The steel manufacturer may have caught renewed attention following the definitive safeguard duties for the import of bars and rods. The duties were determined to be between 13.42% and 13.9% for the first year. They will subsequently decline to between 11.1% and 12.9% over the next two years.



In an April 14 note by Maybank IB Research, the firm said that the duties will protect the local steel industry from an influx of imports over the next three years. Malaysia has seen slower imports in bars and rods recently with a 31% year-on-year decline in January as average selling prices (ASPs) in China have become more attractive than its export markets.



Maybank IB currently has a target price of RM3.20 for Ann Joo's shares. This suggests a 13% upside based on its last traded price of RM2.81 as at 11:40AM today.