KINSTEL - Kinsteel's target price cut by OSK

Stock Name: KINSTEL
Company Name: KINSTEEL BHD
Research House: OSK



OSK says the surprise loss at Kinsteel's downstream operations and worse than expected loss from 37 per cent -owned Perwaja again let them down.

The loss was mainly attributed to the wide mismatch between higher raw materials costs vis-���-vis lower selling prices of steel products, OSK added.

As OSK expect the quantum of improvement anticipated for fourth quarter to be rather limited

It thus cuts estimates by 65.5 per cent for financial year 2010 and 13.2 per cent for financial year 2011. This translate into a lower target price of RM0.83