myongcc5CRC player cud not hedge their selling price b'cos tied up wth their customers like car n fridge manufacturer!
myongcc5Tis round wth robust construction sector, especially gov infra job worth some 10 bil, the 100% long steel bar maker Masteel among Annjoo, Ssteel n lliondind, shall benefit the most fm the price hike!
myongcc5If coming q result less than 5sen, let's dump it! All pointer to positive
myongcc5No reason can't make it! No excuse! Last q was before massive price increased! At 1800. Now n 3mths ago rose up to av 2450! A > 20% up!
《Prospects》 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.
myongcc5My greatest mistake not knowing the result out.
myongcc5My sincere apology to all for this careless mistake.
myongcc5Nigel, thank you very much for the infor, btw when was the result released?
soojinhouI'm taking a closer look at Masteel's report. The unrealized forex loss of 4,622 is most likely the same item as other expenses 4,622. Since it is not part of revenue and cost of sales, it is definitely non-recurring.
YipmanIt's still earning but seller panic selling. just like last quarter. it will rebound soon.
probabilitymarket too high expectation..knee-jerk effect...should not take more than a week for the true effects of the results to surface.
My only concerns is the raw material cost they had used in relative to their product selling price..are they reflective of the future (or just old cheap stocks)..
If they can maintain half of the core operating margin it will be superb already.
moneySIFUAll I can say is the timing of releasing QR by Masteel is terrible.... Lunch time... no time to think & digest.... market reacted......
OOMMGGExclude forex loss, the result is the best Q in a year.
owningAgree with moneysifu, timing of releasing QR is really terrible! From the earning , although the profit not up to expectation, but dont think the market price suppose to drop that much. Afterall, it still come out with better QoQ and YoY. Price will rebound soon...market reacted due to panic selling @@
Billet production capacity: 700,000MT/annum Rolling mill, ~ : 550,000 MT/annum.
Total throughput: 1,250,000MT/annum
If we assume RM150 per ton of steel processed as an average "value addition' per ton of througput of both (this at 5% gross margin on steel price), The Gross profit is = 46 Million per qtr
Since they are taking right from the basic raw material of Scrap - the Safeguard Duty of 13.5% should be theoretically the rock bottom gross margin.
The latest qtr results seem to indicate that they are running at a approximately 40% of max throughput with a gross margin of 10.5%.
"So the current gross profit margin or at the least the absolute gross profit should be sustainable with a better throughput"
They produce the Billets via EAF method which mainly uses Scrap Steel (90%). As mentioned in SS forum earlier, the EAF users will have advantage compared to BOF users who are dependent on Iron Ore and Coking Coal. This will be the competitive advantage factor.
Some reference below ( to prove my message on Scrap Steel users advantage):
Masteel’s improved earnings in 3QFY13 was in stark contrast to the other local steelmakers, all of which reported losses for the period.
We attribute this, in part, to the company’s relatively smaller size and agility in managing its production and stock levels. Its electric arc furnace uses scrap steel as raw material. Scrap steel prices are generally less volatile compared with that of iron ore and coking coal, the main raw materials for larger blast furnaces. Case in point, iron ore prices rose more than scrap steel prices in 3QFY13 due to increased demand from Chinese steelmakers.
investooMasteel poor performance for the quarter is due to forex loss of RM11 miilion, I expect next quarter EPS of at least 6 sen, PE 3.45 at current price.
probabilitywhen new fantastic dishes are constantly being served on the table (till end of the month)...even oysters get abandoned.
many companies reporting fantastic results ma...surely many are eyeing quick short term gains.. they are more concern on latest EPS.
lets see when the waiters stop serving...
probabilityanyone who wants to have a clear understanding on the basic fundamentals of steel processing, you only need to go through the 'single page' on the link below: