Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Thu, 27 Jun 2019, 11:00 PM

 

ANNJOO STEEL - Why is it in Calvin Tan Research's Investment Radar Now, Calvin Tan

Author:   |    Publish date:


Dear friends of i3 forum,

Last month I picked Sasbadi as a turnaround play

This month is Annjoo Steel

Why Annjoo Steel now of all the Steel Counters in KLSE?

These are some salient factors:

1) ANNJOO STEEL HAS FALLEN TO ATTRACTIVE VALUE OF 44% BELOW NAV

At Rm1.35 with NTA of Rm2.40 Annjoo is now selling at a nice discount of 44% (It was over Rm3.80 at one time)

So now Price is down more than 60% from peak and is considered Low & Cheap with Margin of Safety

 

2) RECENT PROJECTS AWARDED SHOW SOME DEMAND FOR STEEL

The continuation of TRX, The Pan Borneo Highway & the recent over Rm300 Millions job award for MRCB showed demand for long steel products'

Another strong booster will be the restoration of ECRL (East Coast Rail line to Tumpat in Kelantan

 

3) In Good Times Anjoo pays good dividends

See

 

So can expect dividend support if sales continue status quo

 

4) ANNJOO IS VERY TRANSPARENT

Usual AR will report Top 30 Shareholders. For Annjoo it goes the extra mile to list up to Top 50 Substantial shareholders.

I am happy to note that many Big Foreign Funds are in Top 50 of Annjoo

2 notable ones are Public Mutual Fund & Eastspring Investment Fund

I also saw Eastspring in TMakmur which was taken private.

 

5) POWERFUL EARNINGS PER SHARE (EPS)

Last 4 Qr were

6.40

3.88

11.88

10.82

Total 32.98 sen

At Rm1.35 Annjoo has a P/E of only 4.09

Now is Annjoo performance sustainable?

See next

 

6) ANNJOO IS EXPORTING STEEL TO SINGAPORE

According to i3 forum writeup...Among Masteel, Lionind and Southern Steel - Annjoo is the only one that export to Singapore Market

See

Business Background

Ann Joo Resources Bhd is primarily engaged in the manufacturing and trading of steel and steel related products. Business activity of the group is divided into two segments namely Manufacturing and Trading segment. Manufacturing segment consist of manufacturing of iron, steel and steel related products such as billets; mild steel round, angle, round, square, flat, wire rods; and black shafts; and Trading segment is involved in trading of steel products such as carbon steel, stainless steel, hardware products, building and construction materials and it also looks into the operations of steel service centers. Further, the group is also involved in investment holding and property management activity. Geographically, it operates in the region of Malaysia and Singapore.

 

And why is Singapore so important?

 

7) HUGE DEMAND FROM SINGAPORE FOR ANNJOO STEEL

Construction demand in Singapore to stay strong, reach up to $32b this year: BCA

 

Total construction demand is expected to be between $27 billion and $32 billion this year.

PUBLISHED

JAN 14, 2019, 11:42 AM SGT

SINGAPORE - Construction demand is expected to remain strong this year due to sustained public sector contracts, as the industry continues to recover from a challenging three-year spell.

Total construction demand, which is the value of construction contracts to be awarded, is expected to be between $27 billion and $32 billion this year, despite additional cooling measures in the private property market and the delay in construction of the high-speed rail between Singapore and Kuala Lumpur last year.

Public construction demand, expected to be between $16.5 billion and $19.5 billion this year, is set to make up about 60 per cent of projected demand for the year.

An estimated $30.5 billion in contracts was awarded last year, according to the Building and Construction Authority (BCA). This is in line with the agency's estimate of between $26 billion and $31 billion for last year.

It represents a 23 per cent increase in construction demand compared with the year before, said Mr Zaqy Mohamad, Minister of State for National Development and Manpower, at the BCA-Redas Built Environment and Property Prospects Seminar which was held on Monday (Jan 14) at the Grand Copthorne Waterfront Hotel.

"Many firms have felt the pressure. Construction demand declined for three consecutive years from 2015 to 2017," Mr Zaqy said in a speech at the event, adding that the Government's move to bring forward $1.4 billion in public projects to start between 2017 and early this year has helped firms ride out the downturn.

 

Public sector demand contributed $18.4 billion last year due to projects such as civil engineering works and institutional buildings. Private sector demand was $12.1 billion, supported by projects such as the redevelopment of en-bloc sites, the sales of which were concluded in 2017 and the first half of last year.

"We have also encouraged government agencies to parcel out large infrastructure projects to create more opportunities for local firms and to diversify risk," said Mr Zaqy.

Total construction demand is estimated to be between $27 billion and $34 billion per year for 2020 and 2021, and between $28 billion and $35 billion per year for 2022 to 2023.

 

8) NO WONDER INSIDERS ARE BUYING LIKE NO TOMMORROW

 

 

Lately some stocks have been force sold at lowest prices. But generally INSIDERS cost are anywhere from Rm1.70 to over Rm3.00

SO AT THIS LOW PRICE OF RM1.35 ANNJOO IS AN OUTRIGHT BUY

 

 

BEST REGARDS

 

Calvin Tan Research

Singapore

 

 

 

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Labels: ANNJOO

Related Stocks

Chart Stock Name Last Change Volume 
ANNJOO 1.56 +0.01 (0.65%) 455,000 

  Be the first to like this.
 
probability Not a bad recommendation from Calvin....

now we have Icon, Philip, Koon, Davidtslim and Calvin coming with recommendations...hint of bullishness in Bursa..
02/02/2019 6:05 PM
newbie4444 Even insiders bought why drop more to 1.35? Who bigger sellers?
02/02/2019 6:56 PM
newbie4444 Why insiders stop buying in 2019? Demand for steel very bad?
02/02/2019 6:57 PM
calvintaneng Hengyuan also dropped to rm2 before bouncing up to Rm19. So price down does not mean it will stay down

As for insiders not buying in 2019 they have already overbought to the maximum

Just wait for next few quarter results of Annjoo and see how
02/02/2019 10:13 PM
calvintaneng probability Not a bad recommendation from Calvin....

now we have Icon, Philip, Koon, Davidtslim and Calvin coming with recommendations...hint of bullishness in Bursa..
02/02/2019 18:05

Calvin replies:

2 impediments removed... Jerome Powell has stopped interest rate rise. US & China paused and possible deal from averting trade war.

So I think there should be a rebound from last year end lows for at least the foreseeable future.

However, I am wary about export stocks to USA or China as growth might peter out.

So Sasbadi due to its insulated nature with Govt stimulation for education & Annjoo for Malaysia & Singapore Infrar jobs

And today is the LORD's Day

So read this excellent Sermon by Dr. John Sung
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/192326.jsp
03/02/2019 8:22 AM
feimah Pls do more research before investing steel stock.
http://www.theedgemarkets.com/article/government-end-antidumping-duty-china-indonesia-hot-rolled-coils?type=malaysia
03/02/2019 4:37 PM
calvintaneng Already done Research

See my chun chun call for Prestar for guardrails bull cycle which gone up more than 100% due to 7 highways
https://eaglevisioninvest.com/prestar-the-undervalue-laggard-construction-material-stock/

China Cold roil steel only impact flat steel

ANNJOO is into LONG STEEL For Infrar jobs & Highrise

PH Govt building 1 million affordable (flats) will be good for Annjoo long steel rebars
03/02/2019 4:47 PM
popo92 steel counters now is one of the top NO NO industry. Those who don't want to lose money please do some homework..
03/02/2019 5:40 PM
feimah PH govt remove antidumping due local steel price is higher then international market price. Construction cost will be running higher if it not removed.
03/02/2019 7:01 PM
calvintaneng I noticed long trailer bring steel bars into Singapore when I travel to Johor and back sometime.

I never see any cold roil steel sheet being transported into Singapore so far

Do you know why?

Answer:

Singapore does not manufacture cars so no need for flat steel sheet

But Singapore needs lots of Long Steel Bars from Annjoo due to:

1) Singapore is expanding MRT network all over the Island
https://www.straitstimes.com/singapore/transport/jurong-region-line-singapores-7th-mrt-line-to-open-in-three-phases-from-2026

https://www.straitstimes.com/singapore/more-new-mrt-lines-to-be-built-by-2030

2) Singapore due to land constrain can only build upward... So more long steel bars are needed.... good times or bad times

3) Old Condo Estate with Huge Lands are enbloc, demolished & rebuild from 300 units to over 1,200 units... so dense that lots of long steel are needed

So there is long term positive for Annjoo
03/02/2019 7:12 PM
calvintaneng From 5,500 units Old Condos after enbloc will result in over 20,000 units

https://sbr.com.sg/residential-property/news/chart-day-en-bloc-sales-2017-expected-yield-20000-redeveloped-units

Land is so scarce that they called it

STACKED HOMES IN SINGAPORE

https://stackedhomes.com/blog/collective-sale-en-bloc-potential/
03/02/2019 7:17 PM
calvintaneng See this latest
https://www.businesstimes.com.sg/real-estate/brookvale-parks-owners-to-get-en-bloc-hongbao-as-sale-is-approved
04/02/2019 12:47 AM
Icon8888 First time Calvin makes call based on earning

What a refreshing change
04/02/2019 4:01 PM
calvintaneng Thanks Icon8888

Your Success Transformer was once my Johor Sifu stock pick.

As well as a few others. So Chun Chun like him.
Thought you know his mind?
04/02/2019 6:00 PM
Leempeh Hi Calvin. Appreciate your insight here. You know I’m constantly on the lookout for grossly undervalued stocks. Took your advice to load up on Talam dy. Looking for a little diversification. Spotted heavy volume on PHB (formerly Nicorp) this morning. I’m normally leary of cos which undergo name changes but what’s your take on this counter? Any potential for ham yi fan sang? PN17 or worthwhile long term hold? You know...I value your high intellect and analytical skills & your opinion.
04/04/2019 1:21 PM
calvintaneng Leempeh Hi Calvin. Appreciate your insight here. You know I’m constantly on the lookout for grossly undervalued stocks. Took your advice to load up on Talam dy. Looking for a little diversification. Spotted heavy volume on PHB (formerly Nicorp) this morning. I’m normally leary of cos which undergo name changes but what’s your take on this counter? Any potential for ham yi fan sang? PN17 or worthwhile long term hold? You know...I value your high intellect and analytical skills & your opinion.
04/04/2019 1:21 PM

GO BUY TDM & MAJU PERAK
04/04/2019 3:33 PM
Leempeh Tx Calvin. What about Ann Joo?
04/04/2019 3:39 PM
calvintaneng Annjoo ok but better stocks for now are so many
04/04/2019 4:11 PM
Boon Keng https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/200947.jsp

thanks calvin for the research.
04/04/2019 4:32 PM
Leempeh Hi Calvin, can you email me at spencertay1atyahoocom? I’ll take it from there, k?
08/04/2019 2:34 PM
Leempeh Do email. I’ve just done some analysis. Just wanna discuss something that I’ve discovered that would have a significant impact on your portfolio with you in private, Calvin. I’ll email you my mobile number after I get your email, so we could this discuss this. Appreciate your time.
08/04/2019 8:29 PM


 

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