CosmoSteel

CosmoSteel: (The Edge) The specialist supplier helps MNCs such as Shell, ExxonMobil an Alstom equip their plants and facilities with piping system components. Following the financial crisis, grp’s growth trajectory is back on track, as rev hit a record $155m and net earnings doubled to $11.1m in FY12 & gross margins also improved to 21.4% after slipping for 2 yrs consecutively. The grp has also consistenyl paid dividends since its listing, with payout at 1.25c/share for Fy12. SIAS has a intrinsic value of 38.5c/share on the counter, noting that key customer Shell is expanding its upstream ethylene cracker plant to ramp up production of loefins and aromatics by more then 20% and that should provide new contract opportunities in addition to recurring service and maintenance orders. Also bullish on co’s prospects overseas mkts, given its stablished links with oil majors and rig makers.