Posted on 14 May 2013
Shares of CSC Steel Bhd rose as much as 9% to a high of RM1.45 on Tuesday after its earnings in the first quarter ended March 31, 2013 exceeded analysts' forecast.
At 9.51am, CSC was up 10 sen to RM1.43. There were 792,300 shares traded at prices ranging from RM1.42 to RM1.45.
The FBM KLCI rose 3.85 points to 1,791.75. Turnover was 507.19 million shares valued at RM353.13mil. There were 374 gainers, 188 losers and 213 counters unchanged.
CSC's net profit jumped more than two-fold to RM17.5mil in the first quarter ended March 31, from RM5.5mil a year ago due to a significant increase in sales volume while lower raw material and lower unit production costs also helped boost profit.
RHB Research said CSC Steel net earnings of RM17.5m were above its and street estimates on higher sales and improved profit margin.
"The Indonesian authority's anti-dumping duty against East Asian steel mills spurred the group's sales while the increase in steel prices further boosted its profitability.
"We revise up our earnings forecast and derive a new RM1.72 FV. Maintain Trading Buy," it said.
