22 July 2019

SSTEEL  5665

PE: -10.27

NTA: 2.04

MARKET CAP: 503 MILLION

SHARES ISSUED: 433.64 MILLION

RECENT NEWS DEVELOPMENT:

30 May 2019

Southern Steel posts second quarterly loss at RM42 million.

Source obtain from https://www.theedgemarkets.com/article/southern-steel-posts-second-quarterly-loss-rm42m

9 May 2019

Miti has revised anti-dumping duties imposed on imported cold rolled coils of alloy and non-alloy steel originating or exported from China, South Korea and Vietnam. “ The Royal Malaysian Customs Department will enforce the collection of the revised anti-dumping duties effective May 8 ,2019 to May 23, 2021. The administrative review investigation was based on a petition filed by CSC Steel Sdn Bhd on behalf of the domestic industry producing cold rolled coils of alloy and non-alloy steel on May 24, 2016.

Chinese Steel producers BEngang Steel Plates Co Ltd’s anti-dumping now stood at 42.08% while BX Steel POSCO Cold Rolled Sheet Co Ltd (35.89%), Jiangsu Shagang International Trade Co Ltd (42.08%) and other producers/exporters (42.08%) – Bernama

Source obtain from https://www.thestar.com.my/business/business-news/2019/05/09/miti-revises-antidumping-duties/

Technical Outlook :

Chart Formation : ROUNDING BOTTOM ; HIGHER LOW; HIGHER HIGH

Volume Pattern : Increasing Buying Interest

SH TREND : BULLISH (OCCUR ON 15 JULY 2019)

MACD : BULLISH ( OCCUR ON 1 JULY 2019)

B-BAND : POSSITIVE TERRITORY

RSI : 79.18 (OVERBOUGHT)

CURRENT PRICE : 1.16

SUPPORT : 1.02 ; 1.11

RESISTANCE  : 1.31 ; 1.45 ; 1.55

PERSONAL OPINION :

Major Shareholder of SSTEEL is Hong Leong Company (Malaysia) Bhd. Earlier Hong Leong offers to take cement maker Tasek Private. Source obtain from https://www.thestar.com.my/business/business-news/2019/05/28/hong-leong-offers-to-take-tasek-private/

So, why is it HL offer at this moment? Is it HL see some hidden opportunity which the public can’t see in the near future? Cement is part of raw material for construction and property project and steel also is part of the raw material needed for construction as well as property sector. After the rally of Tasek, will this rally continue for HL related theme play stock for SSteel. Let  see how is the price going to react for the next few weeks. On top of that, top 10 major shareholder there is Solomon Deva Dassan which we see his name appear for this 2 stock which is SSteel and HengYuan. He has proven his view is right when he started enter into HengYuan. Fellow readers can find it out from financial statement showing top 30 major shareholder. With him into this stock, will it make any difference or another legendary is coming?

Trade with Wisdom

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Disclaimer: Trade at your own risk. Above information is for educational sharing purpose. It does not solicit any buy/sell recommendation. Kindly consult your dealer/ remisier before making any investment decision. Author does not hold any legal responsibility for any losses occur from your personal trading/investment activity.