Friday 29 Mar 2024
By
main news image

CSC STEEL HOLDINGS BHD (+ve)
SHARES of CSC Steel (Fundamental: 1.2/3, Valuation: 1.8/3) have recovered slightly to RM1.04 since posting its 1Q2015 earnings results early last month. The steelmaker returned to profitability in 1Q15, after four consecutive quarterly losses.

For 1Q2015, it posted a net profit of RM5.4 million on the back of a 9.3% revenue growth to RM294.4 million, thanks to higher selling prices and sales volume. Last year, it recorded a net loss of RM21.3 million while revenue declined 8.2% to RM1.0 billion, due to the influx of lower-priced steel products from China as well as global supply glut.

Based in Melaka, the steel coils manufacturer has a strong balance sheet with net cash of RM199.7 million or a substantial 52% of its market capitalisation. 

The stock trades at 0.52 times book. The company proposed a final dividend of 3 sen (ex-entitlement on June 26), giving a net yield of 2.9%.

csc-steel_fd_150615_theedgemarkets

This article first appeared in The Edge Financial Daily, on June 15, 2015.

      Print
      Text Size
      Share