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Ann Joo offers more upside (part 1)

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Publish date: Mon, 18 Sep 2017, 04:58 PM
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Lower PE accorded by market to LionInd due to its loss-making retail business - Parkson.

 

Masteel
With recent rally in steel counters, among the top steel makers, Masteel 's share price moved faster than others, up 52% within 1 month, further fuelled by its bonus issue ex-date (26 Sept) announcement. 4Q PE ratio runs up to 13.2x, ahead of average of 4 counters above.

 

SSteel
In terms of share price, SSteel is the second runner up with 34% increase within 1 month.  PE ratio now stands at 11.1x.

 

AnnJoo
Industry cost leader - AnnJoo's share price moved slower than others, merely increased 17.6% from one month ago. PE ratio at 10.8x, less demanding than Masteel and SSteel.

Given its superior profit margin (refer earlier article on AnnJoo's cost leadership in steel industry), decent dividend policy with 60% payout & slower share price rally than others steel counters, I think AnnJoo has more upside going forward.

 

Other articles

AnnJoo's cost leadership in steel industry

 

ANNJOO (6556)
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Discussions
2 people like this. Showing 13 of 13 comments

KLCI King

Good comparison

2017-09-18 17:14

paperplane2016

annjoo is leader, they have certain advantage over competitor as how they produce the steel. buy and hold

2017-09-18 17:38

Bizfuneng

Bonus issue does value add to Masteel earning. Why ppl chasing the share price up becos of bonus issue ex 26 Sep?

2017-09-18 18:40

Bizfuneng

* Correction - Bonus issue doen't value add to.....

2017-09-18 18:44

John Lu

Said many times already TP rm6 to rm8

2017-09-18 19:21

Albukhary

This is not a good comparison.
You should compare the share price begin from last year (i.e. 1st July).. then you will realise Annjoo share price has increased much more than the other 3 peers.

So now the rooms to growth is depends on the coming quarter profit, instead of claiming Annjoo share price movement is behind the other 3 peers.

2017-09-18 19:31

MrPauper

Well, short sighted people comes out with short sighted comparison and explanation. He may be right this time for the wrong reason but he may be wrong next time for the right reason

2017-09-18 19:58

kimi21

This two weeks almost everyday got "research house" give buy call on steel counter, huat arh!!

2017-09-18 20:30

Stock Kingdom

Good article! Thank you!

Rather focus on short sighted comment from short sighted commenter, pls continue share your hard works, keep it up.

2017-09-18 21:12

Stock Kingdom

Pls talk with substance & stop acting like Guru, Pauper

2017-09-18 21:14

JayC

Annjoo is running at 80 to 90% of their capacity. They might not be able offer additional supply compared to the other 3

2017-09-18 22:38

bursainvest12

AnnJoo distributes the profit to shareholders as dividend.

2017-09-18 23:02

MrPauper

Dear Kingdom, which substance in my words have you not understood? I never meant to be a Guru, and neither will I. I am just another ordinary forum member with ordinary capital trying to find some ordinary gain. Thanks for the compliment though

2017-09-18 23:47

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