Prestar the one and only steel company register earnings growth during MCO period. Hiap Teck include reversal of impairment loss of RM66.15 million yet still record reduce profit compare to previous quarter.
Just to high light that I don't agreed that the Q4 result was good. The JV entity’s much improved performance can be attributable to the reversal of impairment loss of another RM66.15 million which was provided in previous years. Does its mean that Without the this reversal of impairment loss this Q4 will be a loss ? Am I correct ? ----------------------- Answer : Actual Q4 2021 PAT of Hiaptek Hiaptek steel plant in Klang = 11.0 million. Eastern Steel S/B = 49.5 million (impairment gain = 66.15 million). This information appeared in Q4 2021 result.
In Eastern Steel S/B report (100% holding) Actual Eastern Steel S/B PAT (100%) less impairment gain = (49.5/0.35) - 66.15 = 75.28 million 75.28 million is the actual PAT of Eastern Steel S/B (100% holding) after take out 66.15 impairment gain .
Hiaptek owns 35% of Eastern Steel S/B. 35% Eastern Steel S/B PAT = 75.28*0.35 = 26.35 million.
Total Q4 2021 PAT = 11.0+26.35 = 37.35 million.
Actual PAT of Hiaptek is 37.35 million if you take out 66.15 million of impairment gain from the Q4 2021 result.
KLSE is a different type of share market, even though hiaptek delivered ten folds business profit the share price might still remain stagnant. But on the other hand under the name of technology stock the stock price fly skyrocket high with small business profit.
Mr. Koon, buy Annjoo too since it owns 100% of it businesses and has a dividend payout policy of 60%.
Hiap Teck, though may be able to make explosive profits from Eastern Steel with its rising throughput, at 35% stakes it may not be able to dictate the payout (like in JAKS situation, placed in a sea of money but unable to drink).
I hope you regain it back with the top pick shure win Recovery and Value and Growth stock and the numbawan beneficiary of the reopening of the economy, Genting (3182)
Steel industry always cannot sustain its profits over time, up & down is a normal. Who chase high better prepared to stay high rise condo, probably penthouse lagi
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Posted by gladiator > 2021-09-30 14:47 | Report Abuse
Prestar the one and only steel company register earnings growth during MCO period. Hiap Teck include reversal of impairment loss of RM66.15 million yet still record reduce profit compare to previous quarter.