Novo Grp: Announced 1H11 results, which saw Rev at US$207.8m, -4.7%YoY, as Total tonnages of steel products sold by Grp decreased to approximately 893,500t in 1H FY11 from approximately 1,676,000t YoY. In particular, rev generated from international trading -14.4% to US$178.8m. The decrease in the Group’s revenue during the period was due to decrease in international trading of finished products and raw materials….
Grp was impacted by the measures adopted by the PRC govt to cool the economy, particularly on the property sector which affected the steel industry and hence the demand for iron ores dropped considerably….
Sale of raw materials still dominated Grp’s rev, representing approximately 59.8% and 65.4% of total rev of Group in 1H11 and 1H10 respectively. We note that at current price, grp trades at trailing P/E of 5.7x, in line with peers average of 6x.
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