Kyy say property slowdown, all steel counter tarak harap. go sialang jaks and sendai as they do not depend on property market and have earnings visibility for the next few years. you cannot doubt him as he is the founder of IJM, Gamuda and Mudajaya. if u still want to doubt him, u have to look back on your track record and see if you have bought VS, Latitude few years back. if not, do not even try to contradict his view.
@Op3rs Sorry to say properties slowdown since 3 years ago, and it is very "old" issue that yet to solve. Current steel sector's performance mostly base on infrastructure and manufacturing, and driven by low inflow of China's steel.
If properties sector is good, current steel counters' price should be double or even triple. But, i don't think properties sector will recover in coming 2 years.
Good analysis especially on the financial side. Just to add one point on the opportunity, raw materials cost is dropping around 12-15% since Sep, ASP is higher than Q3, that will ensure better profit margin for Annjoo in coming quarter.
1. Why is the calculation of operating cash flow / net profit called Quality of Earnings? My understanding is I have never encounter this ratio and the difference between the two simply comes down to the timing of cash, which when monitor over a length of say 10 years, will come to be more or less the same. And this has nothing to do with the quality of earning, which suppose to mean the sustainability of the earning in the long term.
2. How do you justify that Annjoo deserve a higher PE just because they have best financial metrics compare to other steel companies when in fact their ROIC is at a level that is destroying shareholders value? And looking at the track record where their 10 years incremental return is no better than 10%, won't PE of 10 seems to justify the right valuation?
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....
soojinhou
869 posts
Posted by soojinhou > 2017-11-28 12:40 | Report Abuse
Their ability to pay down their debt, at the same time paying generous dividend, is impressive.