Y. F. Top Picks Update: Removing KRDMD

Removing KRDMDWe remove KRDMD from our top-picks as the stock came under selling pressure due to softening steel prices and concerns about the jump in coking coal price, which led to 14% underperformance vs. XU100 since its inclusion and triggered our stop-loss limit. We believe the stock remains cheap, trading at 3.5x P/E on our 2022E numbers which already assumes normalization in EBITDA/ton to around USD150 levels next year (from USD200 in 2021E), but volatility in coking coal price and less bullish steel price outlook indicates that recovery in stock performance could take some time.


Y. F. Securities Research