Kian Leong Lim, Southern Steel management is good. They have been very generous during better times - giving out tax free 50 ringgit for at least 3 times in a year.
Dividend was later reduced because of fierce competition from china dumping lower grade steel in Malaysia. With the ongoing project of KL Greater MRT, Iskandar Construction Boom and the proposed High speed bullet train from KL- S'pore - there will be a surge in demand for Long Steel
3 Counters that will benefit most from Long Steel Usage (MRT Pillars) ate Southern Steel, Masteel & Ann Joo Steel. However, Southern Steel also have flat steel. Hopefully Management will increase dividend pay out again.
However, Steel is a Cyclical stock. In Boom Times Steel Prices will Shoot Up but in Recession steel usage will go down - so prices will be affected. But we are alright, since many Big projects are ongoing in Malaysia.
There is an extremely undervalued counter called PM Corp(4081) which is Non-cyclical. PM Corp is Now A Chocolate Company like Nestle & Dutch Lady Milk is Recession Proof.
It has High NTA, Cash Rich & Best of All It is Proposing Cash Payout soon.
Go over to PM Corp Forum & check t out now. You will be glad you did!
When I passed by Danga Waterfront City in Johore one night I saw the construction of 9,000 unit condo by China's Country Garden continue into the wee hours of the night.
With the ongoing Boom of Construction Activities in Iskandar I think Southern Steel Should do very well. Southern Steel also belong to the Hong Leong Group. I think it should do well.
Do anybody still own steel shares?. SELL ALL OTHER STEEL COUNTERS & BUY THE BEST!
YES! BUY SOUTHERN STEEL.
1) A TRUSTWORTHY MANAGEMENT - HL Group. 2) STEEL PROSPECTS TURNING BETTER. 3)AMONG STEEL COUNTERS SOUTHERN STEEL GIVE THE HIGHEST DIVIDENDS
kaunter ni banyak bagi duit kat saya,Mula membeli harga 47c.beberapa kali jual beli(kontra)sehimgga harga 145,147..minggu depan saya jangka positif lagi...boleh main kontra
What you mentioned about Southern Steel making more money using less capital is not only true for last quarter, it is also true if you add up the last 4 quarters or the last 8 quarters.
Compare last 4 quarters profit before tax Southern Steel = RM30.9million Ann Joo Resources = RM13.0 million
Compare last 8 quarters profit before tax Southern Steel = RM75.3million Ann Joo Resources = RM3.3 million
In the local integrated steel industry, ignoring the loss making ones of Kinsteel/Perwaja and Lion Corp, the profitable ones are Ann Joo, Southern Steel and Masteel. In 2011 Ann Joo added a mini blast furnace as a kind of upstream hybrid process, thus require more capital, but the revenue is more-or-less the same. Masteel is adding another rolling mill which is a downstream process in the same market, and Southern steel is adding a hot-roll-coil plant which is in a different market (similar to the Lion Corp one), so this we have to watch. I believe Masteel will be the most lean and profitable of the lot.
Insiders bought over 17 million shares last month. So at this depressed price of more than 50% to failed privatisation of Rm2.10 looks Ok. Downside from here is very limited. Potential for upside by Greater Kl Mrt High Speed Bullet Train Iskandar Rail Network Another plus factor is china steel dumping arrested by falling ringgit. Southern Steel is now at multi year low.
wah... last quarter loss 35 million. this one will be the only the 1st company from hong leong that potential turn to PN17, Cut loss fast. Tomorrow sure drop kaw-kaw,
this counter no hope to recover. So badly hit, Hong Leong want to sell now , also no taker. This one will pull Quek down if he don't do anything merger with other parties like Ann Joo. The steel industry have to consolidate. Southern Steel merge with Ann Joo become Southern Joo.
According to MEPS, An absence of competitively-priced third country import offers enabled European flat product producers to target and secure significant increases, in May.
Positive price momentum has continued in Belgium. Mill delivery lead times are long. A number of buyers, both stockholders and end-users, are purchasing more than they need immediately, anticipating further increases in the future. Others report they have been unable to secure sufficient quantities.
It is causes by the termination of contract with Danieli & C.Officine. RM141m written off in the cash flow. "Pending the outcome of SHRC's claims against Danieli in the arbitration, an amount of RM141 million" reference 4th Quater Report, pg SSB/8. The overall business is improving.
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....
Hustle
3,615 posts
Posted by Hustle > 2012-05-23 16:56 | Report Abuse
Hi guys,any idea or comment for this iceberg?