Ann Joo Resources 2QFY09 in line – Back in the black
Ann Joo’s 1H09 results were largely within our expectations as the company managed to revive its earnings and return to the black in 2Q with a small net profit of RM2.2m compared to a RM38.9m loss in 1Q. We gathered that the significant improvement in earnings was largely supported by increased sales volumes, coupled with a better cost structure arising from improved production efficiency. We expect Ann Joo to ride on the resurgence in demand for building materials. We are upping our FY09-11 earnings by 19-33%, which takes our target price from RM2.10 to RM3.09, still pegged to a 20% discount to our revised target market P/E of 15x. We are upgrading our recommendation from Neutral to TRADING BUY on the basis of the potential re-rating catalysts of demand pick-up from pump-priming, higher exports and this quarter’s earnings turnaround.
Quick takes – Rubber Gloves sector update – Feeling the g(love) during our roadshow
Quick takes – Sin sector update – One for the road
Results – Genting Plantations 2QFY09 below – Weaker output nips earnings in the bud
Results – IJM Corp 1QFY10 in line – In a temporary bind
Results – Malayan Banking 4QFY09 below – Getting the impairment over and done with
Results – Petronas Dagangan 1QFY10 above – The engine starts to roar
Results – Puncak Niaga 2QFY09 above – The last acquisition play
Results – Uchi 2QFY09 above – Brewing a stronger cuppa
CI Holdings update – Expect a juicy 4Q earnings surprise
Economic news – BNM maintains rate amid stabilising signs
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