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Research by TA
Buy - TP RM1.35

"Steel on Shaky Ground"

Following the earnings revision, we reduced our target price to RM1.35 (from RM1.64 previously), based on 12x CY25 earnings. We continue to like ANNJOO for the following reasons: (i) ANNJOO stands to be the biggest beneficiary as the key supplier of steel materials for the Penang LRT project, supported by its cost competitiveness from its steel-making plant in Prai, Penang, (ii) increasing construction activities from the revitalisation of the property sector are driving higher demand for steel products, and (iii) the upgrading of the power grid, in line with TNB’s NETR goals, further boosts demand for steel products. Maintain Buy call on the stock.

Analyst:
Raymond Ng Ing Yeow  
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$KLSE-ANNJOO
Research by TA
Buy - TP RM1.35

"Steel on Shaky Ground"

Following the earnings revision, we reduced our target price to RM1.35 (from RM1.64 previously), based on 12x CY25 earnings. We continue to like ANNJOO for the following reasons: (i) ANNJOO stands to be the biggest beneficiary as the key supplier of steel materials for the Penang LRT project, supported by its cost competitiveness from its steel-making plant in Prai, Penang, (ii) increasing construction activities from the revitalisation of the property sector are driving higher demand for steel products, and (iii) the upgrading of the power grid, in line with TNB’s NETR goals, further boosts demand for steel products. Maintain Buy call on the stock.

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

$ANNJOO / 6556 (ANN JOO RESOURCES BERHAD)