Hupsteel

[winston]

From DBS:-

Hupsteel posted yet another strong set of 3Q results that came in above our expectations.

Revenue grew a robust 56% y-o-y to S$120.1m but gross profit margins waned slightly by 1.4ppt to 16.7%.

Going forward, we believe that Hupsteel will continue to benefit from sustained demand for steel.

Maintain Buy; current TP of S$0.51 under review.

[winston]

HUPSteel's Q109 net profit up 62%
By ANGELA TAN

HUPSteel Limited on Tuesday reported its net profit rose 62 per cent from a ayear ago to S$12.0 million for the first quarter ended 30 September 2008.

Rrevenue growth was 56 per cent from a year back toS $111.7 million, led mainly by the increased demand from oil and gas, offshore/marine and construction customers and partially due to higher prices of steel products than a year ago.

Net gearing improved to 0.14 times from 0.2 times.

The company said certain key infrastructure projects such as the Upgrading of Changi Airport Terminal 1, new Downtown MRT line, Marina coastal highway, Khoo Teck Puat Hospital and the Sports Hub are expected to proceed according to schedule.

It added that core offshore/marine customers have orderbooks stretching through 2011, riding on Singapore as a leading Asian building hub for ships, offshore support vessels, oil rigs and platforms.

[mrEngineer]

Some issues that are making me uncomfortable:
1) Share buyback at such uncertain times! Is it strange?

2) The share price rose to the highest of 0.35 and suddenly drop back down to 0.28 in low volume all in the span of 2 weeks. Especially in today's trading when the 3rd quarter is over. I wonder is it due to employees selling after bad quarter results and bleak outlook? But it contradicts my 1st point

3) The 1 cent dividend was announced quite some time ago and nothing was mentioned about it since.

4) Being in a cyclical industry and inventory prices with no value add, the probable slowdown in construction sector may hit the company badly.

5) Probed earlier by SGX on expectations of revenue and Management reply was deferral as works have not entered into critical phase for steel demand. Sounds like an excuse to me.

Nonetheless, vested still. =)

[kennynah]

i am really amazed that we analyse so much about a stock that is not even $1.....with 1 cent dividend....salute !!!

[behappyalways]

hupsteel-swings-out-red-fy17
https://www.theedgesingapore.com/hupste ... t-red-fy17

[behappyalways]

hupsteel-swings-back-black-1q-one-gain
https://www.theedgesingapore.com/hupste ... q-one-gain

[behappyalways]

Hupsteel posts 2Q loss of $2.1 mil on write-off of fixed assets from 38 Genting Lane redevelopment
https://www.theedgesingapore.com/hupste ... evelopment

[behappyalways]

Hupsteel gets $1.20 per share offer from controlling Lim family to delist
https://www.theedgesingapore.com/news/o ... ily-delist

[behappyalways]

Hupsteel offer close extended by 2 weeks to Aug 30
https://www.theedgesingapore.com/news/o ... eks-aug-30