Still a buy: An Ann Joo Resources facility. UOB Kay Hian maintains its ‘buy’ rating on Ann Joo but has reduced its target price to RM3.60 from RM4.50 previously.
PETALING JAYA: Local steel companies, which were subjected to share price swings in recent times following concern on how big an impact the US-China trade spat would have on them, are expected to see improved margins in their soon-to-be released first quarter (1Q18) results.
According to UOB Kay Hian, based on year-to-date spot prices, gross margin per tonne of steel should improve quarter-on-quarter (q-o-q) in 1Q18 to RM711/tonne versus 4Q17’s RM708/tonne.
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