Posted by Albukhary > 2018-01-24 21:54 | Report Abuse

Good analysis! Thumb up!

Posted by investor77 > 2018-01-24 22:20 | Report Abuse

very detailed analysis, excellent write up.

Posted by shortinvestor77 > 2018-01-24 22:48 | Report Abuse

Exported steel will gain US dollars which means less income when ringgit strengthens.

Posted by pantor > 2018-01-24 23:03 | Report Abuse

Steel export only accounts for small percentage of Annjoo revenue. Majority of the steel products are for local demand. So RM strengthening has little negative impact on Annjoo's earning. Moreover increase in steel export due to rise in regional demand will mitigate this.

Posted by GreatWarrants > 2018-01-24 23:04 | Report Abuse

Yeap Annjoo is good.

Posted by investor77 > 2018-01-24 23:06 | Report Abuse

As write up stipulates, eps of 42 cents is reasonable, and with PE 10x, the TP should be around RM 4.20 at least.

Posted by pantor > 2018-01-24 23:07 | Report Abuse

Overall RM strenghtening has more beneficial effects on Annjoo due to lower import cost for raw materials

Posted by Chong Jiunn Hau > 2018-01-25 01:30 | Report Abuse

Very good write up. I was planning to write about Ann Joo, now no need dy. well done!

Posted by Unlevered > 2018-01-27 23:31 | Report Abuse

"Based on the 21% of produciton expansion (850k ton from 700k ton) metric tons as per Annjoo’s CEO (Dato Lim) in the Asia Nikkei’s Interview, the estimated increment in Annjoo net profit (GP) in 2018 is given by the below equation:

NP = 2017 Revenue X 1.21 (21% increase in production) X 10.5% (higher PM as ASP increases by 10%)

= RM2240M X 1.21 X 0.105

= RM285M"


Why is revenue for 2017 total RM2240m? The latest 4 quarters revenue amounts to RM2026m. Is my calculation wrong?