Posted by Lulu La > 2016-09-19 11:26 | Report Abuse

moneysifu..Choo Bee good?

Posted by moneySIFU > 2016-09-19 11:27 | Report Abuse

You will not believe until you study yourself, mycron has been producing & command better margin than CSCSteel for the last 5 quarters continously.

Posted by moneySIFU > 2016-09-19 12:07 | Report Abuse

Lulu La, it's good company but you need to dig deep to understand their business models and current valuation.

Posted by Lulu La > 2016-09-19 12:08 | Report Abuse

yea..i am studying..but need sometime to understand more...

Posted by moneySIFU > 2016-09-19 16:49 | Report Abuse

This stock is next to CSCSteel, even better profit margin than CSCSteel for the past 5 quarters, but far lower valuation.

Delivering consistent better margin performance over 15 months continuously is not luck but hard work.

Posted by Chang Wt > 2016-09-20 08:39 | Report Abuse

Staying above RM 0.86 mostly will continue goreng higher. Today T4, if din fall below RM 0.90, mean got chance to touch RM 1.0. This kind of movement only suitable for do FIFO, or short term. Cause entry price already higher. But I think steel stock not yet end game so possible goreng a bit more. Just remember if hit CL point then leave first and see what next.

Posted by tftey > 2016-09-20 14:19 | Report Abuse

Mycron is better compare to CSC and Choo Bee

Posted by 360Capitalist > 2016-09-21 09:47 | Report Abuse

Chinese Steel Prices Fall to Three-Month Low on Demand Concerns
September 19, 2016 19:11 GMT
As Chinese markets reopened after closing last Thursday and Friday for China’s Mid-Autumn Festival, steel prices saw a dramatic sell-off, plunging to three-month lows on concerns that newly announced moves to cool China’s hot property market will cool steel demand.

Recent data showed that August home prices rose at a faster-than-expected clip, with pricing gains even hitting second and third-tier cities. On Sunday, authorities in Hangzhou said they will begin to restrict home purchases from Sept. 19 to combat the rapid advance in home prices.

China is the world’s largest steel consumer. Stimulus programs implemented by the country earlier in the year boosted steel demand and prices due to rising needs for construction. Steel prices have retreated in September amid indications that China’s demand for steel would wane in the coming months. This follows three consecutive months of gains.

Also adding pressure to prices could be the news that China’s steel output rebounded in China. The country’s crude steel production rose to 68.57 million metric tons in August, up 3% from a year earlier and 2.6% higher than July. This provides support to concerns that China would not continue on its promise to curb steel overcapacity, that accelerating steel output cuts in July were simply due to the country’s preparations to host the G20 summit.

On Monday, the most-traded rebar on Shanghai Futures Exchange fell as low as 2,190 yuan a ton, its weakest price since Jun 29. Raw material iron ore traded on the Dalian Commodity Exchange fell as far as 383 yuan a ton, its lowest since July 26.

Posted by moneySIFU > 2016-09-21 10:09 | Report Abuse

Thanks for sharing, 360Capitalist.

One thing really has to point out that steel industries consist of long products, flat sheets & others

Posted by moneySIFU > 2016-09-21 10:12 | Report Abuse

CRC producers are capturing previously imported CRC market and will be the clear winners in 3-6 months time

Rebar producers are still in the fighting mode.

Posted by moneySIFU > 2016-09-21 10:54 | Report Abuse

Worth to read again:

Bright Future for CRC Steel Producers: CSCSteel, Mycron, Eonmetal & YKGI (Part 1)
http://klse.i3investor.com/blogs/wealth123/103741.jsp

Huge Potential Upside for CRC Steel Producers: CSCSteel (+24%) & Mycron (+90%) (Part 2)
http://klse.i3investor.com/blogs/wealth123/103812.jsp

Flying CRC Steel Producers: Fantastic Business Outlook & Insider's Look (Part 3)
http://klse.i3investor.com/blogs/wealth123/104163.jsp

----------------------------------------------------------------------------------------------------------------------
CONCLUSION:

The CRC price & demand increased in China in recent months and coupled with the imposition of Anti-Dumping Duties on CRC has caused the following situations:

1. China CRC suppliers focus on domestic demands
2. Less competitive in prices of China CRC products

Meanwhile, Malaysia CRC producers are enjoying huge saving in sourcing raw materials (HRC) from international market, especially from China due to the following factors:

1. Closing of Megasteel
2. The application of 9% export tax rebate for HRC products exported by China steel mills

The increase in CRC price and reduction of cost of raw materials (HRC) has given large margin for local CRC companies to compete with China CRC in selling CRC products locally to downstream industries/companies in Malaysia.

As such, local CRC companies are expected to enjoy increase in both sales & profits in the coming months/years.

Posted by moneySIFU > 2016-09-21 16:00 | Report Abuse

0.95, gogogo!!!

Posted by probability > 2016-09-21 16:01 | Report Abuse

hope it breaks 1.0 this week.

Posted by probability > 2016-09-21 16:02 | Report Abuse

WealthWizard is a true genius

Posted by CityTrader > 2016-09-21 16:03 | Report Abuse

:)

Posted by moneySIFU > 2016-09-21 16:08 | Report Abuse

hehe, probability

Posted by tftey > 2016-09-21 17:18 | Report Abuse

LEONFB is also very good. Take a look.

Posted by jcwm22 > 2016-09-21 23:16 | Report Abuse

8wpwtmt8, can you please share with us which research house or article stated the target price of RM1.51? Thank you.

Posted by Jack888 > 2016-09-22 09:57 | Report Abuse

Still in uptrend...buy more.

Posted by bull8888 > 2016-09-22 11:00 | Report Abuse

from rumour , government will announce anti dumping tax 30-40%
stay tunned....

Posted by 8wpwtmt8 > 2016-09-22 16:40 | Report Abuse

Dear moneySIFU/bull8888, the anti-dumping duty of 30 - 40% is it for import of CRC.

Posted by moneySIFU > 2016-09-22 16:56 | Report Abuse

8wpwtmt8, you may read here:

http://klse.i3investor.com/blogs/wealth123/103741.jsp

http://www.miti.gov.my/index.php/pages/view/3343

Posted by moneySIFU > 2016-09-22 16:56 | Report Abuse

Anything can happen in stock market, who knows tomorrow 1.00, or may be 0.80, hehe

Posted by 8wpwtmt8 > 2016-09-22 20:41 | Report Abuse

The Royal Malaysian Customs Department will enforce the collection of anti-dumping duties and this measure will be effective for five (5) years, from 24 May 2016 to 23 May 2021. With the imposition of anti-dumping duties on imports of Cold Rolled Coils of Alloy and Non-Alloy Steel from the alleged countries, it is expected that the issue of unfair trade practices will be addressed.

The anti-dumping duties have already started on 24 May 2016. Why bull8888 said government will announce it.

Posted by Tempac > 2016-09-22 20:47 | Report Abuse

For rebars, not cold rolled coils (CRC).

Posted by smartrader2020 > 2016-09-22 23:26 | Report Abuse

http://klse.i3investor.com/blogs/discoverychannel/104895.jsp

Posted by 8wpwtmt8 > 2016-09-23 00:10 | Report Abuse

http://www.theedgemarkets.com/my/node/303997

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.

Posted by 8wpwtmt8 > 2016-09-23 00:21 | Report Abuse

Dumb dumb hold for 6 months to 1 year while averaging down when there is opportunity.

Posted by 8wpwtmt8 > 2016-09-23 00:28 | Report Abuse

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

Posted by WealthWizard > 2016-09-23 11:21 | Report Abuse

EKOVEST: Doing Great & Ready To Shine, Are You Ready? (Part 1)
http://klse.i3investor.com/blogs/wealth123/104926.jsp

Posted by bing > 2016-09-23 14:37 | Report Abuse

http://klse.i3investor.com/blogs/koonyewyinblog/104931.jsp

Posted by bing > 2016-09-23 14:43 | Report Abuse

The main beneficiaries of Megasteel closure will be CRC players like CSC Steel, Mycron, Yong Kong and Eonmetal.

Posted by prince4 > 2016-09-23 15:04 | Report Abuse

Macd will dead cross soon...next week drop...

Posted by bing > 2016-09-23 15:50 | Report Abuse

I thinks ALL steel stock will bullish at this moment.

Posted by moneySIFU > 2016-09-23 15:54 | Report Abuse

No one cares Mycron, :(

Quietly hold & Mycron will be another round winner again :)

Posted by 8wpwtmt8 > 2016-09-23 16:00 | Report Abuse

Yes moneySIFU, Mycron is a laggard today.

Posted by moneySIFU > 2016-09-23 16:06 | Report Abuse

Hehe, sound like up 2%+ is not enough

Posted by 8wpwtmt8 > 2016-09-23 17:32 | Report Abuse

From Mr Koon Yew Yin:

A few days ago, I posted my article “Megasteel closure will benefit other steel manufacturers” to encourage investors to buy CSC Steel which will benefit the most, in my opinion. Those who believed me, would have bought and now would be waiting for the price to go higher.

In the last few days, investors simply rush in to buy shares of steel companies indiscriminately without the clear understanding of the various kinds of steel products and their manufacturing process. As a result almost all the share prices of steel manufacturers including rebar (for concrete reinforcement in construction) players such as Masteel, Southern Steel, Annjoo; downstream players like Choo Bee, Leon Fuat, AYS, Leader Steel and etc went up indiscriminately.

However, one must realize that Megasteel only produces HRC (hot roll coil) and CRC (cold roll coil). HRC is the raw material used to manufacture CRC. Therefore, CRC players which use HRC as raw material will therefore benefit as they are now able to import cheaper HRC from China (due to Megasteel closure). Consequently, the main beneficiaries of Megasteel closure will be CRC players like CSC Steel, Mycron, Yong Kong and Eonmetal.

CRC has wide usage in various industries like construction (building facet, roofing, fencing, piping and etc), automotive, electrical appliances and many more. Currently CRC players in Malaysia are protected as government recently extended anti-dumping on imported CRC products from China, Vietnam and Korea ranging from 3.06% to 23.78% for period of 5 years starting from 24 May 2016.

Other downstream players that use CRC as raw material will only benefit if the CRC suppliers pass through part of the saving to them.

Rebar players like Masteel, Southern Steel and Annjoo mostly use scrap steel for production. Hence, closure of Megasteel does not benefit them.

However, global steel prices have been bottoming out since early 2016 due to closure of underutilized and inefficient factories in China. Steel prices have generally rallied more than 40% from the bottom in Dec 2015. This is the main reason why all steel players have started to show profit. Many steel players which were trading as if they were on the brink of bankruptcy are now performing better and able to generate decent profits. Previously all steel players have suffered as a result of cheap steel import from China which led to high impairment and unsold inventories.

In addition, in June 2016, the Edge reported that rebar players have lodged a complaint to MITI on steel dumping by China and are currently awaiting result pending investigation. If successful, they will be protected by the government imposing a safeguard tax on imported steel bars. This could potentially be good news to rebar players but one must note that high rise building uses the most rebar, unlike infrastructure projects like bridges and MRT.

Investors must realize that there is an oversupply of houses, offices and condominiums in every town and city in Malaysia. As a result the demand for rebars and water pipes will definitely be less and companies like Masteel, Ann Joo Southern Steel and Choo Bee will be affected.

I am not telling you to buy or sell any share. I am writing this piece to share what I know about this steel industry.

I am obliged to tell you that I am holding a lot of CSC Steel shares and if you buy it, you are doing it at your own risk.

Posted by 8wpwtmt8 > 2016-09-23 17:45 | Report Abuse

Based on the above article, CSC Steel and Mycron should go up because they are the main beneficiaries of Megasteel closure.

Rebar players like Masteel, Southern Steel and Annjoo mostly use scrap steel for production. Hence, closure of Megasteel does not benefit them.

Posted by 8wpwtmt8 > 2016-09-23 17:56 | Report Abuse

I think psychological barrier of RM1.00 is affecting MYCRON from meletup.

Posted by Goodiinvestor > 2016-09-23 18:39 | Report Abuse

If you know who is the company chairman.. You will never want to sell the share !

Posted by kmhb09558 > 2016-09-23 18:41 | Report Abuse

siapa itu chairman

Posted by Goodiinvestor > 2016-09-23 18:49 | Report Abuse

Steel become safe heaven in next financial crisis.
Hot topic among the traders.. I believe the bull is gonna b endless

Posted by moneySIFU > 2016-09-23 22:51 | Report Abuse

3 - 6 months, if result is fantastic & above expectation, extend to another 3 months, and the process will repeat & repeat until result stay

Posted by probability > 2016-09-24 17:32 | Report Abuse

http://www.thestar.com.my/news/nation/2016/09/24/new-proton-saga-coming-next-week-national-carmaker-aims-to-sell-5000-units-of-third-generation-model/

say you use only 500kg of CRC per car. 0.5 ton x 5000 units per month = 2500 ton meaning 30,000 ton per annum.

Current Mycron capacity utilization 200,000 ton per annum.
hmm...considering its a new model which may only replace a portion of the existing sales, the demand contribution to from this alone to Mycron may be say 5-10%..instead of 15%.

Cheap cars instead of high end car are better for Mycron as they almost use the same amount of steel but there is a lot of encouragement for the consumers to buy! he he..

Posted by probability > 2016-09-24 17:54 | Report Abuse

Refer page 4 on the usage of CRC in cars: Just an image:

https://www.nssmc.com/product/catalog_download/pdf/U003en.pdf

Posted by 8wpwtmt8 > 2016-09-25 19:48 | Report Abuse

This weekend’s Edge only started covering Mycron – one of the CRC players.

Posted by 8wpwtmt8 > 2016-09-26 10:20 | Report Abuse

Rebars players have overcome CRC players. Please try to catch up CRC players.

Posted by probability > 2016-09-26 10:30 | Report Abuse

Mycron is more than just a CRC player, it has two stage value addition - manufacturing stages.

Posted by 8wpwtmt8 > Sep 26, 2016 10:20 AM | Report Abuse

Rebars players have overcome CRC players. Please try to catch up CRC players.

Posted by probability > 2016-09-26 11:28 | Report Abuse

have a feeling will touch 1.0 today