Escalating US-China trade war to have negative effect on manufacturing segment. To suspend all carbon steel exports to US. Cut FY19-20 earnings due to unexpected preliminary circumvention. Downgrade to HOLD with TP of RM0.60.
Based on Valuation TP of RM0.60 is based on 12x CY18 EPS. This is
in line with +1SD of its historical mean PE.
Key Risks - Escalating...
