Among others, that may involve the long-shelved RM1.2 billion, second phase of expansion of Ann Joo’s existing blast furnace facility. Five out of seven analysts tracking Ann Joo retain a “sell” call with target prices between 73 sen and RM1.10. “Through the formation of the JV, Ann Joo could integrate into the downstream industrial-grade wire rod product, which Southern Steel has been doing, while on the other hand, Southern Steel could utilise billet products from Ann Joo to replace imported billets,” Kenanga Research observed in a Oct 8 note. As for Southern Steel, it is unclear what is in store for it after the proposed injection of its assets is completed. To be fair, Ann Joo was also loss-making in the first six months of its current financial year ending Dec 31, 2019.

Source: The Edge Markets October 21, 2019 09:00 UTC