Posted by soojinhou > 2017-02-22 15:35 | Report Abuse

Probability, when I look at results, I always look at the core, and exclude non recurring items. If u take out 11m of forex loss, core eps is around 6 cents.

Posted by YiStock > 2017-02-22 15:37 | Report Abuse

jinhou, for importer who buy oversea and sell local like Masteel (vs those import & export), taking core earning you think appropriate? your opinion pls.

Posted by soojinhou > 2017-02-22 15:41 | Report Abuse

I think it's appropriate, the material cost should already include the cost in usd. Therefore, I deem the forex losses as non recurring

Posted by probability > 2017-02-22 15:44 | Report Abuse

thanks soojinhou :)

Posted by soojinhou > 2017-02-22 16:30 | Report Abuse

I'm taking a closer look at Masteel's report. The unrealized forex loss of 4,622 is most likely the same item as other expenses 4,622. Since it is not part of revenue and cost of sales, it is definitely non-recurring⁠⁠⁠⁠.

Posted by Yipman > 2017-02-22 16:33 | Report Abuse

It's still earning but seller panic selling. just like last quarter. it will rebound soon.

Posted by probability > 2017-02-22 16:44 | Report Abuse

market too high expectation..knee-jerk effect...should not take more than a week for the true effects of the results to surface.

My only concerns is the raw material cost they had used in relative to their product selling price..are they reflective of the future (or just old cheap stocks)..

If they can maintain half of the core operating margin it will be superb already.

Posted by moneySIFU > 2017-02-22 17:10 | Report Abuse

All I can say is the timing of releasing QR by Masteel is terrible.... Lunch time... no time to think & digest.... market reacted......

Posted by OOMMGG > 2017-02-22 18:13 | Report Abuse

Exclude forex loss, the result is the best Q in a year.

Posted by owning > 2017-02-22 18:34 | Report Abuse

Agree with moneysifu, timing of releasing QR is really terrible! From the earning , although the profit not up to expectation, but dont think the market price suppose to drop that much. Afterall, it still come out with better QoQ and YoY.
Price will rebound soon...market reacted due to panic selling @@

Posted by comebackisreal > 2017-02-22 18:34 | Report Abuse

Cheap. All in

Posted by agcnazriadam > 2017-02-22 18:42 | Report Abuse

Time to buy

Posted by leoting > 2017-02-22 20:59 | Report Abuse

http://leoting81.blogspot.my/2017/02/5098-masteel.html

Posted by ng1943 > 2017-02-22 21:50 | Report Abuse

same game over over agaiin result out press down collect then push up

Posted by probability > 2017-02-23 03:43 | Report Abuse

http://www.masteel.com.my/about-2/brief-history-milestone/

Billet production capacity: 700,000MT/annum
Rolling mill, ~ : 550,000 MT/annum.

Total throughput: 1,250,000MT/annum

If we assume RM150 per ton of steel processed as an average "value addition' per ton of througput of both (this at 5% gross margin on steel price),
The Gross profit is = 46 Million per qtr

Since they are taking right from the basic raw material of Scrap - the Safeguard Duty of 13.5% should be theoretically the rock bottom gross margin.

The latest qtr results seem to indicate that they are running at a approximately 40% of max throughput with a gross margin of 10.5%.


"So the current gross profit margin or at the least the absolute gross profit should be sustainable with a better throughput"



They produce the Billets via EAF method which mainly uses Scrap Steel (90%). As mentioned in SS forum earlier, the EAF users will have advantage compared to BOF users who are dependent on Iron Ore and Coking Coal. This will be the competitive advantage factor.


Some reference below ( to prove my message on Scrap Steel users advantage):

http://content.investor.net.my/the-edge-daily-masteel-stays-profitable-in-tough-conditions.html

Masteel’s improved earnings in 3QFY13 was in stark contrast to the other local steelmakers, all of which reported losses for the period.

We attribute this, in part, to the company’s relatively smaller size and agility in managing its production and stock levels. Its electric arc furnace uses scrap steel as raw material. Scrap steel prices are generally less volatile compared with that of iron ore and coking coal, the main raw materials for larger blast furnaces. Case in point, iron ore prices rose more than scrap steel prices in 3QFY13 due to increased demand from Chinese steelmakers.

Posted by investoo > 2017-02-23 13:56 | Report Abuse

Masteel poor performance for the quarter is due to forex loss of RM11 miilion, I expect next quarter EPS of at least 6 sen, PE 3.45 at current price.

Posted by probability > 2017-02-23 14:10 | Report Abuse

when new fantastic dishes are constantly being served on the table (till end of the month)...even oysters get abandoned.

many companies reporting fantastic results ma...surely many are eyeing quick short term gains.. they are more concern on latest EPS.

lets see when the waiters stop serving...

Posted by probability > 2017-02-23 14:27 | Report Abuse

anyone who wants to have a clear understanding on the basic fundamentals of steel processing, you only need to go through the 'single page' on the link below:


https://www.worldcoal.org/coal/uses-coal/how-steel-produced


its especially important and easier to understand by going through the process diagram shown in the middle of the page. It shows the basic two routes of processing BOF and EAF.

Posted by Investopia > 2017-02-24 23:14 | Report Abuse

Next quarter report timing will have some fantastic news ......

Posted by comebackisreal > 2017-02-25 04:35 | Report Abuse

No wonder heavy sell down for masteel. Even lionind eps also higher than masteel.

Posted by Josephine Ong > 2017-02-27 11:43 | Report Abuse

selling unwarranted...coming back strongly soon

Posted by IamGoogle > 2017-02-27 16:17 | Report Abuse

All steel companies bleeding like hell today

Posted by Candl3 > 2017-02-27 16:26 | Report Abuse

why huh? got what news?

Posted by Investopia > 2017-02-27 22:46 | Report Abuse

Be patient ya...... it maybe just normal adjustment after results announcement for some to take profit....

Posted by Investopia > 2017-02-27 22:48 | Report Abuse

Will be looking to buy after mid March after the US interest rates announcement & after looking at the reaction of our Super Duper Weak Ringgit...

Posted by Khairil84 > 2017-03-01 16:53 | Report Abuse

reversal

Posted by noah > 2017-03-06 11:47 | Report Abuse

i wonder why the management did not hedge their position to prevent huge forex losses??
since they already know they are importing stuff in USD

Posted by posby > 2017-03-10 11:08 | Report Abuse

lion sudah lari...bila masteel lari?

Posted by culbertlim > 2017-03-13 20:44 | Report Abuse

Better don't let your people come out and attack other's stock please got one people call CALVINTANENG better call him to shutup stfu and sto attacking GADANG while promoting his super MASTEEL in his blog thank you

Posted by calvintaneng > 2017-03-13 20:47 | Report Abuse

Posted by culbertlim > Mar 13, 2017 08:44 PM | Report Abuse

Better don't let your people come out and attack other's stock please got one people call CALVINTANENG better call him to shutup stfu and sto attacking GADANG while promoting his super MASTEEL in his blog thank you


Hahaha!

You are so cute

Posted by calvintaneng > 2017-03-14 10:40 | Report Abuse

Whoa!
Masteel still unmoved?

Time to buy back some cheap overlooked Masteel shares!

YAHOOO!!

Posted by familybusiness > 2017-03-14 13:27 | Report Abuse

start moving??

Posted by calvintaneng > 2017-03-15 10:34 | Report Abuse

Whoa very cheap! Just buy!!

Posted by heaven123 > 2017-03-16 08:22 | Report Abuse

KYY make million just two weeks.

Posted by heaven123 > 2017-03-16 08:23 | Report Abuse

Jaks

Posted by heaven123 > 2017-03-16 08:24 | Report Abuse

Calvin eagle shut up-

Posted by TheContrarian > 2017-03-16 09:27 | Report Abuse

Calvin, bought Masteel for the first time in my life today. You better be right!

Posted by Josephine Ong > 2017-03-16 09:42 | Report Abuse

crossing 0.80 today

Posted by familybusiness > 2017-03-16 17:23 | Report Abuse

Calvin, i'm bought it few days ago... so please be right...fly fly..

Posted by familybusiness > 2017-03-16 17:24 | Report Abuse

kyy donated 50M. Million is nothing to him.

Posted by posby > 2017-03-18 19:43 | Report Abuse

china today announce cut extra 50million tonnes on top of 60million promised.. monday is steel on spotlight

Posted by probability > 2017-03-18 19:46 | Report Abuse

can share the link posby?

Posted by probability > 2017-03-18 19:58 | Report Abuse

http://www.reuters.com/article/china-parliament-steel-coal-idUSL3N1GS0RF

http://www.economiccalendar.com/2017/03/13/chinese-steel-prices-resume-their-rally/

Posted by probability > 2017-03-18 21:29 | Report Abuse

http://www.sunsirs.com/uk/prodetail-927.html

Posted by posby > 2017-03-18 22:34 | Report Abuse

i read it @ investing.com apps

Posted by Nigel Low > 2017-03-27 17:04 | Report Abuse

Blackealge1989 created new ID just to informed us "Insider News"? How thoughtful isn't it....

Posted by Unicorn > 2017-03-27 17:08 | Report Abuse

If he really created IDs to cheat us, then he is definitely not an ordinary Joe loh..

Posted by kevin008 > 2017-03-27 17:13 | Report Abuse

hopefully the import duties will remain
election coming..sweet for steel co. rather than construction co. loh..since they dy gave so much big contract n project to construction co.

Posted by leoting > 2017-03-27 19:35 | Report Abuse

钢铁第5报告之380天Update http://leoting81.blogspot.my/2017/03/5380update.html

Posted by OOMMGG > 2017-03-28 13:51 | Report Abuse

Government know better what is the consequence of fully removing of safeguard import duty. If not maintain the current rate of safeguard import duty, some sort of protection must in place to protect local steel industry. This is government resonsibility to ensure survival of local steel industry to continue support local infrastructure building and development of property.