AMBANK maintained its high-conviction BUY call on Ann Joo Resources Bhd (Ann Joo) - with fair value raised from RM3.20 per share to RM3.70 per share.
The group’s continued focus will be on the ASEAN region, where there is currently a void in blast furnace capacity - particularly in the supply of semi-finished steel.
Export sales are expected to rise to 50 per cent in FY2009F from less than 30 per cent a few years ago.
Ann Joo is set to leverage on robust regional steel demand - focusing primarily on long steel products. This structural repositioning puts the group in a sweet spot as an early beneficiary of accelerated infrastructure spending.
Annjoo share price is on clear uptrend but its warrant is moving side way. Because of this scenario, Annjoo-wb's premium has been steadily declining. Currently the premium is 16.6% and the gearing is 4.1. The expiry date is 10/1/2013 with 1161 days to go. The premium is relatively low as there is such as long time before it expires.
Ok, good luck.
GOon
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