Mycron's PBT of RM12.3 mil for Q4/6/16 (table above) was after a provision for plant impairment of RM8.6 mil, a non-cash item. If impairment does not recur, PBT in the current year would be much higher on that alone.
In a nutshell, domestic CRC steel players' share price have still been far trading below their potential fundamental value for the next 4 quarters (from July 2016 - June 2017). The values as shown below:
CSC Steel Mycron Steel Projected next 4Q earnings (RM'000) 110,072 63,282 Projected EPS (sen) 29.9 22.4 Target PE (x) 9.0 8.0 Fundamental value (RM) 2.69 1.79 Potential upside (%) 37.2 94.0
Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com:
However, one bright spot he cited is the steel sector, which is also because it came from a low base. "There is a good chance of (steel counters) still climbing up in the coming months," he added.
CSCSTEL is the best among so many steel counter with huge net cash 321 Millions. Target PE for CSCSTEL should be higher than 9. Target price for CSCSTEL is >3.
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MQ Trader 3238 views | 3 d ago
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
probability
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Posted by probability > 2016-09-23 00:07 | Report Abuse
Hot molten steel lava...waiting to erupt.