BlueScope Steel Limited

BSL Details
·         Weak commodity prices dragged the stock lower: BlueScope Steel Limited (ASX: BSL) stock lost over 4.7% on March 22, 2017 impacted by the weakness in commodity prices. On the other hand, the group’s Australian Steel Products Underlying EBIT surged over 40% to $242.5 million in the first half of 2017 driven by the ongoing productivity improvements and cost savings. North Star Underlying EBIT enhanced 398% to $211.3 million driven by the solid lift to spread and productivity improvements in terms of volume and costs. Building Products ASEAN, Nth Am & India Underlying EBIT improved 70% year on year (yoy) to $111.3 million driven by better margins. BlueScope Buildings Underlying EBIT surged 45% yoy to $49.5 million during the period.
 
·         Recommendation:BSL stock rallied 76.15% in the last six months (as at March 21, 2017). We give an “Expensive” recommendation on the stock at the current price of – $ 12.39
 

Capital and Investment Expenditure (Source: Company Reports) 

TFS Corporation Limited (Quintis)

TFC (QIN) Details
·         Name change: TFS Corporation Limited (ASX: TFC) stock lost over 7.4% on March 22, 2017 while the group reported that they have formally changed the name to Quintis (from March 22, 2017) under a rebranding strategy. This move has come to represent the group’s renewed operational focus on establishing a global brand sourced from a super-ingredient. The group is listed on the Australian Securities Exchange and is a part of the S&P/ASX 300 index with a market capitalization of over $600 million. The group has made first shipments of wood to China while first sandalwood album oil has been supplied to the US aromatherapy market in 2016. On the other hand, there have been media reports that some self-serving report by a shorter has been released recently, and this has probably impacted the stock price. The group is, however, said to be on track to achieve its guidance for FY17 adjusted cash EBITDA to increase at least 25% on FY16.
 
·         Recommendation:TFC stock lost over 14.2% in the last three months (as of March 21, 2017) and is placed at reasonable levels. We believe the stock would recover in the coming months and give a “Buy” recommendation at the current price of – $ 1.31

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