[%gbyu%] 
Research by TA
Sell – TP of RM1.11

“Steel Demand Remains Subdued”

Following the stabilisation of raw material costs, we believe that the group’s margin should gradually improve over time. However, we remain wary about the prospect of the global steel market, as the ASP and demand may require a longer time to ramp up and restore the balance of demand-supply globally. 

Apart from that, the 2-year moratorium implemented by the Ministry of Investment, Trade and Industry (MITI), which allowed reassessments to address the numerous challenges the local steel industry faces, is believed to have a positive impact on the steel sector. This strategy is expected to improve the competitive landscape and benefit the existing steel players.

Analyst(s):
Raymond Ng Ing Yeow 
[%jfGO%]

$KLSE-ANNJOO 
Research by TA
Sell – TP of RM1.11

“Steel Demand Remains Subdued”

Following the stabilisation of raw material costs, we believe that the group’s margin should gradually improve over time. However, we remain wary about the prospect of the global steel market, as the ASP and demand may require a longer time to ramp up and restore the balance of demand-supply globally. 

Apart from that, the 2-year moratorium implemented by the Ministry of Investment, Trade and Industry (MITI), which allowed reassessments to address the numerous challenges the local steel industry faces, is believed to have a positive impact on the steel sector. This strategy is expected to improve the competitive landscape and benefit the existing steel players.

Analyst(s):
Raymond Ng Ing Yeow 
raymondng@ta.com.my

$ANNJOO / 6556 (ANN JOO RESOURCES BERHAD)