CSC earnings above expectations


Corporate NewsTA Securities noted that CSC’s FY20 core profit of RM33.6mil came in above expectations, accounting for 131.7% and 145.2% of its and consensus’ full-year estimates.

KUALA LUMPUR: Better demand and improved margins should drive CSC Steel Holdings Bhd’s earnings in the coming year.

TA Securities noted that CSC’s FY20 core profit of RM33.6mil came in above expectations, accounting for 131.7% and 145.2% of its and consensus’ full-year estimates.

The positive variance was mainly due to lower-than-expected selling and marketing expenditures as well as higher-than-expected margin from coated products.

“Year-on-year, FY20 core profit dropped 3% to RM33.6mil as revenue was 20.8% lower at RM1.08bil. The weaker earnings were mainly dragged by temporary suspension of its main business operations during the first phase of the movement control order period, effective from the middle of March 2020 to early May 2020.

“Quarter-on-quarter, Q4FY20 core profit surged 20.3% to RM15.9mil while revenue increased by 19.8% to RM367.5mil. The stronger results were mainly attributed to higher sales and better margins, ” TA Securities said in a note.

It made adjustments to its earnings forecasts to reflect lower selling and marketing expenses as well as higher average selling prices for some of the CSC’s coated products.

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