700K meltshop and 450K rolling mill , monthly profit will be 9.5 millions minimum.yearly EPS 0.467 if PE is 5 Masteel projected share price will be 2.33 potential of masteel not yet realise
For billets production, normally steel mill can make 100/tan and rolling mill can make 150 to 200 per tan so with the output of 700k(billets)and 450k(rebar) production. Masteel will be making 11 millions a month which is EPS4.5 sen/month. If we take the worst case scenario, 50/ton of profit. Masteel still have a EPS of 23 sen/year
You can judge my yourself what would be the share price.
I got no idea to count its profit level. By looking at turnaround trend, it's very likely Masteel would trade PER below 6x at current price six months later.
DJ down 400+ points due to fed rate increase furthermore it is still not yet firm with the feb increase rate, usd going to be strengthen and export counters are the one should be in the focus again. masteel 100% rebar for building construction depend on properties and government projects and with the budget coming, these two sectors will be in focus again With the current rebar price and masteel production, the expected EPS still remain at 23 sen conservatively masteel will be 1.15+ minimum if the current condition remain thr'' 2016/2017
If Masteel can close above 80 sen, it will be very good. Some steel counters have reach multi-year high but Masteel not yet. It's over RM1.1++ last time
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....
paperplane2016
21,646 posts
Posted by paperplane2016 > 2016-09-05 21:36 | Report Abuse
Wanna, huat