CSC Steel Holdings Bhd (+ve)
Shares of CSC Steel (Fundamental: 1.45/3, Valuation: 1.4/3) closed down 3.08% or four sen at RM1.26 yesterday, with 948,900 shares changing hands.
The steel coils manufacturer saw it return to the black, with a net profit of RM54.6 million for the financial year ended Dec 31, 2015 (4QFY15) compared with a net loss of RM21.3 million a year ago. Full-year revenue was flat at RM1 billion.
For 4QFY15, CSC Steel registered a net profit of RM28.5 million, despite a 7.3% year-on-year decline in revenue to RM242.5 million. The improved profitability was attributed to lower costs of production as a result of lower hot rolled steel prices and a write back of doubtful debt provision of RM16.9 million.
The company also declared a final dividend of 8 sen for 2015, which translates to a yield of 6.3% at current price. The stock trades at a trailing 12-month P/E of 8.8 times and 0.6 times book.
http://www.theedgemarkets.com/my/article/stock-momentum-csc-steel-holdings-0
