Stock Digest - Malaysia Smelting Corporation Bhd - Global integrated tin mining & smelting player

Malaysia Smelting Corporation Bhd (MSC) history traces back to 1902 and is now ranked as one of the largest producer of tin metal and tin-based products in the world with total smelting capacity of 80,000 MT pa. Tin mining production is gradually on the uptrend, owing to better production efficiency, while new smelting plant at Pulau Indah is expected to anchor the smelting division’s growth. We initiate coverage on MSC with a HOLD call and fair value of RM5.36, based on 13.0x P/E pegged to its forward FY23f EPS of 41.2 sen.