TA Securities keeps Sell on Steel Hawk, cites weak earnings visibility despite RM576mil tender book

TA Securities has maintained its 'Sell' call on Steel Hawk Bhd, citing limited earnings visibility despite a RM575.8 million tender book. The research house noted that the company's current orderbook of RM63.4 million is modest and that a meaningful portion of growth depends on securing new awards, with management guiding to only a 10-20 per cent conversion rate. The firm also highlighted a sharp decline in gross profit margin and a cautious outlook for the oil and gas sector.