Stock Digest - OM Holdings Ltd - Vertically Integrated Manganese Ore And Ferroalloy Player

OM Holdings Ltd (OMH) started off since 1994 and has now evolved into one of the largest vertically integrated manganese ore and ferroalloy player in South East Asia market. Greenfield of expansion of Samalaju Smelting Complex is bearing fruit, placing OMH in the pole position against its peers in terms of competitive production cost over the long term. We initiate coverage on OMH with a BUY call and fair value of RM3.65, based on 9.0x P/E pegged to its forward FY23f EPS of 40.5 sen.