Monday, November 16, 2009

Sino-Huaan (RHB)

Investment case. We continue to like Sino Hua-An as: (1) The
improved prospects of the steel sector in China will continue to
boost profitability of Sino Hua-An; and (2) It is a good proxy for
China steel sector exposure. Indicative fair value is RM0.59 based
on 10x FY12/10 EPS of 5.9 sen, in line with our 1-year forward
target PER for the long steel product sector that is the main user of
metallurgical coke. Maintain BUY.



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