Buying back Masteel on Weakness as Results are actually in excellent order, By Calvin Tan Research
I went through Masteel last quarter results again and I noticed that Masteel is doing fine.
These are my findings:
The Top Reasons to take another look at Masteel – The Master of All Long Steel Players.
1) Although Masteel made a mere 1.67 sen profit this quarter it actually made more than 4 sen this quarter. How come? The 2.4 cts loss was due to foreign currency exchange loss which is one off and not recurring. So Masteel has a forward P/E of less than 5 on the strength of its improved earnings (Of course some might dispute the figures since there is a Rm6.4 million forex loss this quarter.
2) Same scenario was experienced by Southern Steel on its August 22, 2016 report. On that day SS reported a loss of 26.86 sen. And Calvin Tan Research commented it was a one off event (due to write off impairment of Rm140 millions) If not Southern Steel should register a gross profit of Rm89 millions.
As subsequent results showed that SS has improved tremendously after the one off impairment.
So I think Masteel should show great improvements (as the forex loss is also a one off event)
3) A CLOSER LOOK AT MASTEEL ACCOUNTS ACTUALLY SHOW GOOD IMPROVEMENTS
These are the positive signs:
a) Cash position has increased by almost Rm50 millions
b) NTA has further strengthened from Rm2.17 to Rm2.26.
At 78 sen closing price now Masteel is selling at a Whopping 64% Discount to NTA – providing a Big Margin of Safety.
3) The Roll Out of Rm2.7 Billions MRT JOBS should give a booster for Masteel’s rebar steel as Masteel is a pure long steel player. As such its long steel products should benefit the most from heavy infrar works like MRT Pillars, MRT Plat Forms, Overhead Bridges. It should also benefit from the Pan Borneo Highway Construction.
4) With the recurring fog & smog in Major Chinese Cities – The Beijing Govt is calling for a ban on polluting iron & steel factories. So there will be a curtailing of rampant runaway overproduction of inferior steel from China. This means that there will be less dumping of cheap steel in Malaysia. This augurs well for the strenthening of steel prices in Malaysia.
5) IRON ORE PRICES REBOUNDING BY MORE THAN 50%
As Iron Ore prices have increased Steel Prices will also go up in tandem.
01:02:00 PM EDT 3/14/2017
6) WEAK RINGGIT MEANS MORE EXPENSIVE CHINA STEEL IMPORTS
With the Crash of Ringgit from Rm3.50 to Rm4.45 – All imports including all Steel from China now look unfeasible. And Malaysia with the Collapse of Ringgit Now Becomes Super Competitive on World Markets.
7) Masteel’s Management is sanguine on exports.
See extracts from Masteel reports:
With the recovery of steel bar prices from an average of RM1,443 per MT in January 2016 to RM2,192 per MT in January 2017 which amounts to a price surge of 50%, this has enabled the Company to operate profitably and with more installed rebar rolling capacities becoming available this year, the revenue of the Company is expected to be improved upon in the coming quarters .
The persistently higher prices of raw materials for steelmaking such as iron ore, coking coal and scrap will ensure steel bars prices remain firm with an expected fluctuation within a narrow range of 10% for the next few months.
The Company expects to improve its sales volume to East Malaysia due to the mega infrastructure projects in the next 5 years. In addition, with the favorable exchange rate between RM and USD, the Company’s products will be exported to new customers in the Oceania countries.
8) TRUMP’S US1 TRILLION (Rm4.45 Trillions) INFRAR WORKS FOR USA WILL FURTHER BOOST IRON ORE & STEEL PRICES.
With creaking bridges, roads that look like kampung roads, airports that look worst than 3rd world’s – USA is in great need of a total overhaul of all its Infrarstructures. And Donald Trump has proposed a US1 Trilllion Budget for Infrar works troughout the US. This will spur demand for all hard commodities. So Steel prices are expected to spike further.
9) DURING THE 2006 to 2007 STEEL BULL RUN MASTEEL WENT UP IN TANDEM WITH ANJOO STEEL & SOUTHERN STEEL.
SO THIS ROUND ANNJOO HAS ALREADY RUN FAR AHEAD. SOUTHERN STEEL IS ALSO MOVING UP STRONGLY. SO MASTEEL THE LAGGARD IS EXPECTED TO RUN UP LIKEWISE. A RISING TIDE LIFTS ALL BOATS. SO MASTEEL IS EXPECTED TO RISE LIKE ANJOO & SOUTHERN STEEL (ALL 3 LONG STEEL PLAYERS)
10) MASTEEL WAS FIRST RECOMMENDED BY DR NEOH SOON KEAN IN HIS MONTHLY INVESTMENT DIGEST
Almost 10 years ago I have followed Grand Master Champion Sifu Dr Neoh of Dynaquest in his Monthly Digest. And Masteel is One of Dr. Neoh’s Stock Picks.
Many years have passed & Dr. Neoh is still holding firmly his Masteel Shares
Coming in at No. Top 12 is Dr. Neoh with 1.25 million Masteel Shares.
22 NEOH CHOO EE & COMPANY, SDN. BERHAD 1,250,000 0.512%
With Dr. Neoh’s foresght & guidance Countless Investors have reaped bountiful returns through the years of following Deep Value Investing in the Tradition of the Great Benjamin Graham.
Many Thanks & Many Happy Returns
- GREAT SUCESSFUL INVESTMENTS YEAR 2019: OGSE BULL RUN THEME; 2020 MEDICAL GLOVE SUPERBULL THEME: 2021 IS PALM OIL CPO BULL RUN THEME December 31, 2020
- LOOKS LIKE PALM OIL GOING INTO A BULL TREND DUE TO LA LINA AGAIN IN 2020/21 November 24, 2020
- AFTER MEDICAL GLOVE BULL RUN THE NEXT UPCOMING BULL THEME IS PALM OIL November 1, 2020
- 1993 WAS ASIAN TIGER BULLRUN, 2020 IS HEALTH CARE BULL RUN BY COVID 19, GLOVE, FACEMASK & NOW SANITIZER IN NYLEX & ANCOM, Calvin Tan Research May 14, 2020
- PROLEXUS (8966) ProXmask: The ProActive High Quality FACE MASK product of Prolexus that excels , Calvin Tan Research May 6, 2020
- MTAG (0213) MTAG (0231) ANOTHER GLOVES, FACE MASKS & RESPIRATORS DISTRIBUTORS, Calvin Tan Research April 27, 2020
- QUESTION & ANSWERS FOR LUXCHEM April 17, 2020
- PM’s speech on Prihatin Economic Stimulus Package (NFCP FIBERISATION IS ON!!) Calvin Tan Research March 29, 2020
- NETX (0020) INSATIABLE BUYING BY NETX STAFF SHOWS IMMENSE POTENTIAL February 14, 2020
- T7 GLOBAL VERSUS CARIMIN, , UZMA, PENERGY, & DAYANG (Compare & Contrast) Calvin Tan Research January 17, 2020
- TELEKOM TENDERS: SOME POSSIBLE WINNERS, Calvin Tan Research December 29, 2019
- BUY NETX, OPCOM, REDTONE & CMSB (SACOFA) FOR MULTI YEARS BULL RUN IN NFCP STOCKS SOON, Calvin Tan Research November 27, 2019
- T7 WINNING SUBSEA JOBS WILL BE ANOTHER PENERGY FOR TOPSIDE November 22, 2019
- NAIM FIRED UP ON ALL 4 ENGINES BUT CMSB(2852) HAS 7 SEVEN ENGINES OF GROWTH, Calvin Tan Research 22 Nov November 22, 2019
- TOP 10 REASONS WHY NETX IS NOW THE BEST BUY FOR NFCP JUST AS VELESTO WAS FOR OGSE November 17, 2019
- TOP UNDERVALUE SHARES TO BUY NOW FOR 2020 BULL RUN TIME November 16, 2019
- CMSB (2852) OWNER OF KENANGA INVESTMENT BANK , CEMENT MONOPOLY, FIBER OPTIC TOWER MONOPOLY IN SARAWAK November 12, 2019
- THIS IS NOW THE BEST TIME TO DEPLOY MONEY FULLY INTO THE COMING BULL YEAR OF 2020, Calvin Tan Research November 11, 2019
- PLEASE WHATASPP CALVIN TAN AT 019-3384010 Or 014-6101668 FOR NEXT POST November 9, 2019
- NETX MISSION STATEMENT November 9, 2019
- NETX IN CHUN CHUN INTO e-KYC October 30, 2019
- SELL UZMA. SELL CARIMIN. BUY OPCOM, REDTONE, NETX & OTHERS October 28, 2019
- 9th M’sia Plan Top Budget Allocation For Infrar Powered Up Cement So 12 MP For NFCP Powers up Opcom, Redtone & Netx, Calvin Tan October 27, 2019
- WHY IS ASIABIO BUYING ONLY NETX AND NOT DGB, MLAB, XOX, VSOLAR FINTEC & OTHERS? Calvin Tan Research October 26, 2019
- ASIAOBIO BOSS BUYING SO MUCH NETX OVER ALL OTHERS SHOW GREAT POTENTIAL, Calvin Tan Research October 26, 2019
- DIRECTORS/INSIDERS STRONG BUYING SHOWS NFCP BULL RUN VERY SOON, Calvin Tan Research October 21, 2019
- MUI PROPERTY (3913) HIGH VALUE STOCK WITH POWERFUL GROWTH CATALYST, Calvin Tan Research October 18, 2019
- TOP 10 REASONS TO BUY REDTONE (0032) BENEFICIARY OF NFCP OR NATIONWIDE FIBERISATION, Calvin Tan Research October 2, 2019
- NETX HAS A 70/30 FIGHTING CHANCE TO SURVIVE AND DO WELL IN THE DIGITAL ECONOMY, Calvin Tan Research September 25, 2019
- SCOMIES, OPCOM & NETX September 23, 2019
- SCOMI ENERGY (7045) THE HIDDEN GEM IN O&G BULL RUN September 19, 2019
- OPCOM (0035) OPTIMAL OPTIC COMPANY : THE SUPER-STOCK OF THE DIGITAL ECONOMY, Calvin Tan Research September 16, 2019
- BUY UZMA (7250) AT 62 SEN. TARGET PRICE RM1.20 August 12, 2019
- BUY TA ENTERPRIZE FOR ITS 4.1 SEN DIVIDEND (ABOUT 6% YIELD WHICH IS TWICE THAT OF BANK FD RATE) June 15, 2019
- LAFARGE CEMENT UP 100% FROM RM2.25 TO RM4.50 TODAY. TIME TO BUY MASTEEL (5098) AS IT IS A LAGGARD June 14, 2019
- TESTIMONY OF YTL TO THE POWER OF PROVIDENCE June 8, 2019
- DOLOMITE(5835) UP 143% DUE TO ASSET SALE WILL ASB(1481) GO UP LIKEWISE BY ASSET SALE? June 7, 2019
- INVESTMENT NEWS FOR JUNE 2019 BY EAGLE VISION June 6, 2019
- A LOOK AT PETRONAS LATEST GOOD QUARTER RESULT OF 9% EARNINGS GROWTH, Calvin Tan Research June 1, 2019
- OIL & GAS BULL PAUSE. AFTER THIS POOR QUARTER RESULT DUE TO MONSOON O&G BULL RUN WILL RESUME, Calvin Tan Research May 26, 2019
- UZMA (7250) UTTERLY ZEALOUS MASTERING ALL. THE OnG LAGGARD WITH BEST POTENTIAL, Calvin Tan Research May 10, 2019
- (PART ONE) KUMPULAN PERANGSANG SELANGOR (5843) KUMPULAN PROACTIVELY SUPERCHARGED, Calvin Tan Research April 25, 2019
- THESE FIVE STOCKS MIGHT BENEFIT FROM ECRL SOUTH: Mui Prop, AsiaPac, MKH, L&G & Olympia, Calvin Tan Research April 17, 2019
- MKH (6114) METRO KAJANG WILL BENEFIT FROM ECRL REROUTE TO BANGI/KAJANG, Calvin Tan Research April 15, 2019
- IMAGO MALL OF ASIAPAC (4057) ECRL SIGNING WILL BRING BACK CHINA TOURISTS, Calvin Tan April 15, 2019
- ASIAPAC (4057) THREE CHUN CHUN BULL TARGETS FOR A 200% UPSIDE (ECRL, VMY 2020 & HSR April 11, 2019
- JTIASA (Fong Siling – Cold Eye & Pheim Fund Tan Chong Koay) Versus TDM (Dr. Neoh Soon Kean of Dynaquest) Calvin Tan Research April 5, 2019
- MAJU PERAK (8141) MAJULAH PERAK BY GEELY – PROTON PARTNERSHIP IN EXPANSION & GROWTH, Calvin Tan April 5, 2019
- TDM (2054) VERSUS MAJU PERAK (8141) POTENTIAL TO RISE 100% to 200% BY ECRL BOOSTER, Calvin Tan Research April 3, 2019
- ECRL (East Coastal Rail Link) Top Beneficiaries AZRB, T7 Global, Prestar, Masteel, Lafarge & TalamT, Calvin Tan Research March 20, 2019
- December 2020
- November 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- August 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015