Csc Steel Holdings Berhad

$CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD)
Research by TA
Sell – TP RM1.20

"Under Siege by Low-Cost Imports”

Following the earnings revision, we adjusted our target price to RM1.20, based on 11x CY25 earnings. Considering the negative risk-reward profile, we downgraded the stock to Sell.

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

More Good News on Steel Industry

1. Data centre boom, chip industry expansion expected to boost local steel demand
- Steel consumption is expected to see positive growth this year, reaching 8.3 million tonnes, primarily driven by the construction of data centres. If infrastructure projects like the Penang light rail transit commence, steel demand could approach nine million tonnes.

2. Miti working with construction industry, Works Ministry to ensure more local steel used in govt projects
- The government is exploring ways to enforce greater use of local steel products in government projects. Additionally, a two-year moratorium on approvals for expansion and diversification in the iron and steel industry was implemented in August 2023. This moratorium applies to all inquiries, assessments of current applications, new applications, licence transfers, expansions, regularisations, and diversifications for manufacturing licences in the iron and steel industry.

Companies poised to be benefited: $HIAPTEK / 5072 (HIAP TECK VENTURE BERHAD), $ANNJOO / 6556 (ANN JOO RESOURCES BERHAD), $KKB / 9466 (KKB ENGINEERING BERHAD), $CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD), $SENDAI / 5205 (EVERSENDAI CORPORATION BERHAD), CHINWEL, TONGHER, SSTEEL, ASTINO, MASTEEL, TSA, LEFORM, LIONIND, BWYS, LEONFB, TASHIN, YLI, etc.

$CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD)
Research by TA
Buy – TP RM1.73

“Good Start to the Year"

Considering the favourable outlook, we raise our target PER to 11x from 9x against CY25 earnings, resulting in a new target price of RM1.73 (RM1.41 previously). Maintain Buy on the stock.

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

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

General Meetings: Outcome of Meeting

CSCSTEL - Notice of Book Closure

CIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

Final Dividend

Change of Company Secretary - YONG MAY LI

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONSCIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

$CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD)
Research by TA
Buy - TP of RM1.41

"Gradual Easing Headwinds Ahead"

Excluding the provision for the inventories written down of RM3.3mn, CSCSTEL’s FY23 results missed our expectations as its core earnings of RM46.2mn (+174.6% YoY) made up only 82.2% of our full-year estimate. The negative variance was mainly attributed to lower-than-expected selling price and sales volume.

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

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

OTHERSProposed a Final Single Tier Dividend of RM0.094 per share for financial year ended 31 December 2023

Change in Boardroom - MR LEE, CHIA-CHENG

Change in Nomination Committee - MISS SITI HALIZA BINTI MD TAIB

Change in Boardroom - MR LIU, MIN-HSIUNG

Change in Nomination Committee - BRIG GEN (R ) DATO’ MOHD ZAABA @ NIK ZAABA BIN NIK DAUD

Change in Boardroom - MISS LIN, YI-JANE

Change in Boardroom - MR CHEN, YI-CHIEN

Change in Boardroom - BRIG GEN (R ) DATO’ MOHD ZAABA @ NIK ZAABA BIN NIK DAUD

MATERIAL LITIGATIONJudicial Review Applications Against the Decision Made by the Respondents (The Minister of MITI, MITI, The Finance Minister & the Government of Malaysia)

$CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD)
Research by TA Securities
Buy – Target Price RM1.38

“Expects Domestic Steel Demand to Further Pick up”

We take this opportunity to increase the target PE multiple for CSCSTEL from 8x to 9x, as we are more optimistic about the steel industry’s long term outlook, following a stronger commitment from the government. With that, we revised the target price from RM1.23 to RM1.38 based on 9xCY24 earnings. Upgrade the stock from Hold to Buy.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

$CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD)
Research by TA Securities
Hold – Target Price RM1.21

“Driven by Strong Sales Volume”

After revising the earnings forecasts, we revised the target price from RM1.18 to RM1.21, based on 8xCY24 earnings. Maintain Hold call on the stock.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 30/06/2023

General Meetings: Outcome of Meeting

$CSCSTEL / 5094 (CSC STEEL HOLDINGS BERHAD)
Research by TA
Hold - Target Price RM1,18

"Driven by Higher Sales Volume"

CSCSTEL’s 1QFY23 core profit of RM15.7mn came in above expectations, accounting for 37.2% of our full-year estimate. The positive variance was mainly due to stronger-than-expected sales volume.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/03/2023