Yong Xin: Steel manufacturer could rise if demand picks up and coke-trading business resumes
Written by Angeline Cheong
Saturday, 06 February 2010 17:24
Last month, there were worries that loss-making steel manufacturer Yong Xin International Holdings would be hit after its coke supplier was declared bankrupt, threatening to halt Yong Xin’s coketrading business just as it was generating profits. Shares of Yong Xin fell 6% to close at 15 cents on Jan 29, a day after the announcement. However, Phillip Capital believes the company could rise by more than 70% as China’s stimulus package lifts demand for high-precision steel strips. The brokerage also raises the possibility of Yong Xin reviving its coke-trading business by acquiring the bankrupt coke supplier at distressed prices.
