Masteel

Masteel

Postby winston » Fri Sep 08, 2017 9:24 am

not vested

Trading Buy: MASTEEL-5098
(Last price: RM1.22, Potential upside +14.8%)

Company Profile

MASTEEL is one of the biggest manufacturers of steel billets and steel bars.in Malaysia. Besides, it has an associate company which manufactures radioisotopes for the imaging of cancer cells.

Trading Catalyst

Positive earnings outlook as steel prices are likely to remain strong, buoyed by strengthening RM/US$, Malaysia’s government safeguard duties coupled with the higher China steel prices following a confluence of factors including stable demand, capacity cuts and policies to reduce pollution.

MASTEEL is only trading at 0.54x P/BV and 6.1x FY17 P/E (refer FIG2), 62% and 33% below its peers, respectively.

Positive triangle breakout to test RM1.28-1.40 levels.

Technical View
Resistance: RM1.28 / RM1.35 / RM1.40
Support: RM1.18 / RM1.15
Cut loss: RM1.14

Key Financial Stats
Trading at 6.1x FY17 P/E (est), 33% below peers
Undemanding P/B of 0.54x, a 62% discount vs peers

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Masteel

Postby winston » Mon Nov 06, 2017 8:45 am

not vested

Trading Buy: MASTEEL - 5098
(Last price: RM1.24, Potential upside +18.5%)

Company Profile
• MASTEEL is involved in the manufacturing of steel billets and steel bars. It also has an associate company which manufactures radioisotopes for the imaging of cancer cells for hospitals in Malaysia.

Trading Catalyst

• For the upcoming 3Q17 results, market is anticipating steel rebars companies such as MASTEEL to perform better, taking cue from strong local steel rebars and expanding margins, as rebar prices hit multi-year high at RM2700/tonne levels in Sep before retracing to RM2450 currently.

• At RM1.24, MASTEEL is trading at 0.66x P/BV (based on enlarged shares) and 8.3x FY17 P/E, which are 55% and 16% below its peers, respectively. We see limited downside risks amid undemanding valuations and early signs of bottoming up in technical indicators.

• MASTEEL is poised for a downtrend reversal and a successful downtrend line breakout above RM1.29 will spur prices higher towards RM1.35-1.47 zones.

Technical View
• Resistance: RM1.29 / RM1.35 / RM1.47
• Support: RM1.19 / RM1.16
• Cut loss: RM1.15

Key Financial Stats
• Trading at annualised FY17 P/E of 8.3x (peers: 9.9x)
• Trading at 0.66x P/BV (peers: 1.46x)

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Masteel

Postby winston » Fri Nov 24, 2017 11:42 am

not vested

Masteel posts over 30-fold rise in 3Q net profit; plans bonus issue

by Adela Megan Willy

Malaysia Steel Works (KL) Bhd's (Masteel) net profit for the third quarter surged by more than 30 times to RM38.67 million from RM1.24 million a year ago, thanks to higher selling prices of steel bar and increased sales volume.

Revenue for the three months ended Sept 30, 2017 grew 45.7% to RM401.45 million from RM275.45 million a year ago.

The group said its new steel rolling mill, which commenced operations in the second half of 2016, also contributed towards the additional sales volume and profit margin improvement.

Source: The Edge

http://www.theedgemarkets.com/article/m ... onus-issue
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Masteel

Postby winston » Sat Mar 03, 2018 7:36 pm

Why Malaysia Steel share price is plunging?

By Koon Yew Yin

Malaysia Steel makes steel bars for the concrete construction. If developers and contractors cannot sell their properties, they will not buy steel bars.

That is why Masteel’s 4th quarter EPS was only 4 sen, very much lower than all the other 3 quarters of the year 2017.

Masteel’s future profit will continue to reduce.


http://koonyewyin.com/2018/03/02/why-ma ... -plunging/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Masteel

Postby winston » Fri May 04, 2018 8:44 am

not vested

Trading Buy: MASTEEL - 5098
(Last price: RM0.780, Potential upside +24.4%)

Company Profile
• Masteel is mainly involved in the production of steel billets and steel bars. Its associate company is manufacturing radioisotopes for the imaging of cancer cells for hospitals in Malaysia.

Trading Catalyst
• Cheap valuations at 0.38x P/BV (64% below its peers) and 4.4x FY17 P/E (31% below its peers and 46% below 10Y average).
• Management is cautiously optimistic of a good FY18, leveraging of a firm steel prices (average RM2700/MT in 1Q18/RM2678 YTD vs 4Q17 of RM2490) as well as expecting accelerated pick-up in demand from up-and-coming mega infrastructure projects.
• Anticipate a downtrend line breakout above RM0.805 before hitting RM0.87-0.97 zones. Key supports are situated near RM0.0.71-0.74. Cut loss at RM0.705.

Technical View
• Resistance: RM0.805 / RM0.870 / RM0.970
• Support: RM0.740 / RM0.710
• Cut loss: RM0.705

Key Financial Stats
• Trading at 4.4x FY17 P/E and 0.38x P/B.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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