Aluminium price is higher as compared to last quarter but ChooBee result is not as good as previous quarter. Revenue drop, net profit drop, eps drop, how to rise on tomorrow? I would value it at RM1.50 only.
I agree with Tempac. IF selling, you maybe will lose few cents. The best strategy is just dumb dumb hold it till next quarter. Based on 10 pe ratio, rm2 is possible.
Yes dumb...dumb hold, got cash per share of Rm 1.16 ....with no borrowing, and with nta more than Rm 4.00....with annual expected EPS of Rm 0.20, this is a very strong buy mah...!!
plane...................It is the lowest quarterly sales since 2006...............the company managed to make a bit of money because it managed to dispose of some old stocks at a high price.
for the period, stocks drop by $50 million. So, there have been huge stock profits in view of higher prices but the company has drastically cut down its operations too in view of low demand. Easy profits is over...Low demand will remain.....Expect the company to go into the red next period.
Those said it would reach rm3 before have waken up from their dream? Poor choobee, actually its quaterly result is not that bad, but still drops like no tomorrow... may be because of the revenue is decrease significantly
Everyone has in mind a very high expectations in steel com. Thinking it will have high revenue and high profit Some sifu bashing it when QR show revenue down with high profit. To me, the important thing is that the com must have increase profit and good cash in their reserve. I'm just a small holder. I will wait for nx QR before deciding for my next move.
still a gem in my opinion, cash already stand Rm1.10++ current price is still lower than graham net net!!! Good margin of safety. Even low demand now can post such results, can collect more..
i think next qrt rev will be similar to this qrt, a lot of affordable housing projects are still under planning stage in 2016, construction works will kick off in 3Q/4Q 2017
please see their comment on quarterly report. Management guided that huge spike in steel price during Q3 is resulting in customer delaying in placing orders. once customer able to accept the current high steel price, they will place orders. I expect revenue to be back to Q2 level
Mycron actively considering US, UK export markets TheEdgeFri, Dec 09, 2016
This article first appeared in The Edge Financial Daily, on December 9, 2016.
KUALA LUMPUR: Mycron Steel Bhd said it is currently assessing new markets to export its steel tube products, and is considering the UK, US and emerging countries as potential export destinations.
Group executive chairman Tunku Datuk Yaacob (pic) said exports currently make up a negligible portion of its sales, mainly due to Mycron previously having to acquire hot rolled coils (HRC) — the raw material for its cold rolled coil (CRC) products — from Lion Group’s Megasteel Sdn Bhd.
“In the previous days when Megasteel was still around, we had to buy all our raw materials from Megasteel. It was very expensive, making us uncompetitive when it comes to exporting.
“Since they have stopped operations, we can now begin to consider exporting pipes as we can purchase HRC at competitive prices and hence sell at competitive prices,” he said following Mycron and Melewar Industrial Group Bhd’s annual general meeting yesterday. Melewar is the holding company of Mycron. He said the company is also looking to export CRC.
The company previously hoped to benefit from the Trans-Pacific Partnership (TPP) agreement to export its products to the US. “We were hoping that with the TPP coming into force, we could sell our pipes and CRC to the US. But it looks like that is not going to happen,” he said.
However, he said, exporting to the US is still possible, considering the country’s reasonable import duty of 6.2%, which means the US market is still worth considering.
Besides the US, Mycron is looking at exporting steel pipes to the UK, and is eyeing to secure a contract for works related to the Malaysian-owned Battersea Power Station project.
“Right now, we only have very small revenue contributions from foreign markets, but that’s an opportunity for the company. We’re looking at the US, Europe and any other emerging countries that may have opportunities for exporting to, or even potentially setting up operations. We are actively studying different markets,” said Mycron chief operating officer Roshan Abdullah.
However, Roshan said the company will not be able to export in big quantities, as Mycron is operating at almost full capacity. However, he said the company will consider expanding its capacity if exports pick up. “If there is strong demand coming from foreign markets, definitely we would consider to expand. We will think about it when the time comes,” said Roshan.
He said the company is currently producing 205,000 tonnes of CRC per year, out of its total capacity of 250,000 tonnes per year. Its steel pipe production currently operates at 8,000 tonnes per month versus its total capacity of 18,000 tonnes.
Meanwhile, the company lauded the anti-dumping measures introduced by the government in May this year — when it imposed anti-dumping taxes ranging between 3.06% and 23.78% on certain CRC manufacturers from China, Vietnam and South Korea. Mycron said the move is beneficial to the local steel industry as it keeps speculators and low-quality raw materials away.
upstream manufacturers suffer higher margin compression than downstream....like Southern Steel who are selling end products like Rebars to end consumers.
Midstream like Mycron (HRC-> CRC) we have to be wary too..except for their Steel Tube segments.
Posted by pingdan > Feb 17, 2017 05:50 PM | Report Abuse
i wonder why...
Southern steel result good Lysaght result good Choobee result good
CSC business depend on CRC and HRC wheareas SSteel is long peoducts, driven by construction, Lysaght is electrical, telco and lighting poles loh...!! Choobee is mixed steel products and pipe mah....!!
Going fwd i think CSC will improve loh....!!
I think KYY and Mammy good it wrongloh.....CSC no game changer loh, it just that now they can import directly, no need order from mega steel loh.......!!
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....
VenFx
14,784 posts
Posted by VenFx > 2016-11-25 16:28 | Report Abuse
Choo Bee, a good laggard play too :)