If you go to my blog, Koon Yew Yin you can read 2 articles namely "Investors must look at the company's business" and FA & TA can mislead investors in which I pointed out AYS and Masteel are selling building materials for the building construction. There is an oversupply of unsold properties in every town and city in Malaysia. As a result, contractors will not buy building materials. Although Masteel is now showing a fairly good profit, its profit will be reduced in the next few quarters. Just like AYS, many readers do not believe what I said about Masteel. They are angry because they do not want me to discourage people from buying Masteel shares to push the price down. Only time can tell who is right and who is wrong. Koon Yew Yin
In a released report titled "Steel — Asia, 2018 outlook”, a senior Moody’s vice president, Kai Hu, said the likely stable profitability for Asian steelmakers that they rate is underpinned by the removal of excess steel production capacity in China and broadly steady demand in Asia as a whole.
Moody's said steel production capacity in China will continue to decline due to the Chinese government's supply-side reforms and environmental protection measures; factors which will reduce the supply glut in Asia.
Moody's explained China drives the outlook for steel companies in Asia, because the country represents the region's largest steel consumer, as well as producer.
"Overall steel demand in Asia will remain stable, with robust demand growth in South and Southeast Asia, and flat growth in China," Hu added.
Moody's report said the stable outlook for steelmakers in Asia also reflects China's purchasing managers' index, which remains above 50, indicating increased manufacturing activity; a situation which is positive for steel demand.
apparently is the hike on gas price that cause this. but i calculate shouldnt have big impact on the operation cost. + this company core business only distribute steel.
Maybe they look at the future outlook of steel industry
Medium-term prospects for the industry continue to look promising
CHINA has long been blamed for the global steel industry’s woes.
But this year, the once beleaguered sector saw a change in its fortune as China’s steel prices stabilised, driven by government initiatives to reduce its steel production capacity in a bid cut the steel glut and reduce pollution there.
Over the last five years, China had flooded the global market with cheap steel, which put pressure on steel prices, pushing many local companies into dire straits. Unprofitable steel plants stopped operations, while the bigger players saw their losses growing. Some had their bonds downgraded to junk status.
Steel prices were driven by China’s effort to curb pollution by closing down some mills. But that has changed this year. Local steel players continue recording strong earnings growth on rising steel prices and a steady increase in domestic demand driven by infrastructure project
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....
godhand
1,952 posts
Posted by godhand > 2017-11-28 16:10 | Report Abuse
yea the thing is i cant sell also cause it makes no sense. something fishy is definitely going on