Posted by hewiester > 2016-12-01 10:51 | Report Abuse

Here we go.. Prestar the superstar is charging up north again! Are we ready guys?!?

Posted by pang72 > 2016-12-01 12:28 | Report Abuse

Lai la

Posted by mani_cum > 2016-12-01 12:52 | Report Abuse

hi! Hewiester, O&G play in only bet in SKpetro these days and only for trading purpose. As for Wah Seong i'm quite neutral in it. Price wise i expect it to stable for the time being and needs new catalyst to boost up price. As for Prestar i will add more on weakness. Tips for u ... have a look on Penta Master. Me already in @ 1.21. If u interested lets discuss in Penta i3 cos not nice to disturb Prestar conversation here............Cheers!!

Posted by probability > 2016-12-01 13:34 | Report Abuse

Excellent information below...this shows why PRESTAR importing from POSCO Korea having the least duty % imposed is becoming so profitable!


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

Posted by probability > 2016-12-01 13:42 | Report Abuse

Structure of Prestar business is indicated at the bottom:

http://www.prestarmarketing.com.my/v2/index.php?option=com_content&view=article&id=53&Itemid=81

Posted by probability > 2016-12-01 13:49 | Report Abuse

More details on Prestar:

http://www.prestar.com.my/

Posted by Angielim9955 > 2016-12-01 14:20 | Report Abuse

hewiester , why you like
PRESTAR RESOURCES BERHAD

so much , seem results neutral , no much improve , any plan ?

Posted by mani_cum > 2016-12-01 15:21 | Report Abuse

double thumb

Posted by Alex Lim Jun Xiong > 2016-12-01 15:25 | Report Abuse

Lai liao, lai liao.
Going to RM1 soon.

Posted by mani_cum > 2016-12-01 15:50 | Report Abuse

operator push.... later Q disappear........hmm!!

Posted by pang72 > 2016-12-01 17:45 | Report Abuse

Tomorrow testing 0.81 again

Posted by pang72 > 2016-12-01 17:45 | Report Abuse

After 0.81 will toward rm1.20....

Posted by pang72 > 2016-12-01 17:46 | Report Abuse

Maybe all mycron and Melewar fans come to celebrate here

Posted by asiv92 > 2016-12-01 17:52 | Report Abuse

mycron fan right here

Posted by PlsGiveBonus > 2016-12-01 17:57 | Report Abuse

@@

Posted by pang72 > 2016-12-01 21:25 | Report Abuse

Thank you mycron fan here to celebrate prestar success

Posted by pang72 > 2016-12-01 21:26 | Report Abuse

Prestar will shoot up as level as mycron 1.20

Posted by pang72 > 2016-12-01 21:26 | Report Abuse

Tomorrow high possibility got good show.

Posted by VenFx > 2016-12-01 21:32 | Report Abuse

Happy to see Prestar becoming a member of CRC league .

Posted by probability > 2016-12-02 11:03 | Report Abuse

Look at OKA's EPS and the price it deserves....

Isn't the growth that we are expecting on road - curbs making and road - railings making should be treated proportional and treated the same?

Posted by John Lu > 2016-12-02 11:05 | Report Abuse

Prestar can buy?

Posted by jonbravo > 2016-12-02 11:49 | Report Abuse

tp 1.30

Posted by jonbravo > 2016-12-02 11:49 | Report Abuse

buy before otb comes

Posted by FutureEyes > 2016-12-02 23:17 | Report Abuse

This is certainly a big potential company.

Posted by probability > 2016-12-03 03:08 | Report Abuse

Posted by ronnietan > Dec 3, 2016 12:22 AM | Report Abuse

probability, you said Prestar now imports HRC from Posco with small duty? Howcome small duty. HRC at a lower price perhaps.
So it might be similar for CSC which could import from Taiwanese parent.

Posted by probability > 2016-12-03 03:12 | Report Abuse

ronnietan, i meant CRC as per below:

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

I believe CRC is its major portion of raw material to produce its end products via cutting and machining. The product includes Steel Tubes.

Posted by probability > 2016-12-03 03:13 | Report Abuse

The above lesser duty on CRC of ~ 3 % from POSCO Korea and Vietnam compared to other countries at 10 -20 over % appears to be specifically catered for PRESTAR.

POSCO based in Vietnam or Korea could procure HRC as their raw material without a high duty unlike Malaysian HRC consumers like Mycron & YKGI.... As such they can produce CRC at way cheaper pricing.

This is truly giving an advantage to PRESTAR

Posted by probability > 2016-12-03 11:13 | Report Abuse

Posted by stockraider > Dec 3, 2016 10:06 AM | Report Abuse

If prestar can import Coil with low duties, there is nothing stop CSC, Mycron, Choobee, annjoo and hiaptek to import coil with low duty too mah.....!!

Steel business is a commodity business, no one had a profound competitive advantage especially imports, it all boil down to efficiency mah....!!

Posted by probability > 2016-12-03 11:15 | Report Abuse

Posted by probability > Dec 3, 2016 11:10 AM | Report Abuse X

Raider, the duty above is for CRC and not HRC....

Key difference between (1) Mycron / Cscsteel/ YKGI with (2) Prestar:

- (1) uses Imported HRC now as their raw material due to Megasteel Closure

- (2) mainly uses CRC imported from its susbsidaries (this is the reason the Duty is placed very low relative to other supplier , refer link from MITI above).

- (2) also uses HRC to make the CRC but likely using Vietnam to acquire the cheaply imported HRC there in Vietnam with lesser duty and then convert to CRC.

- the last two phenomenon is indirectly disabling (1) excluding Cscsteel to raise their Selling Prices of CRC as their Buyers - end downstream manufactures need a competitive price of CRC as their raw material to compete with PRESTAR.

Posted by probability > 2016-12-03 12:16 | Report Abuse

Things are becoming clearer..

The CRC produced from Scrap based HRC are used for Steel Tube making as per below:

http://www.prestar.com.my/bizActivities/steelUnit_prestarsteel.asp

i believe this is the reason PRESTAR had mentioned that they stand to gain from the closure of Megasteel in their latest qtr report.

If one studies Mycron's latest quarterly results, one would know that their Steel Tube segment margin had significantly improved compared to their quarter ending 31March 2016 albeit marginally lower than the preceding qtr performance. This is purely due to Imported HRC and the rise in Steel Tubes pricing accordingly.

The Steel Tubes produced by Prestar are of similar specification to Mycron unlike Choo Bee's which are not suited to high end petrochemical or process plant applications.

Posted by probability > 2016-12-03 16:20 | Report Abuse

http://www.prestar.com.my/bizActivities/steelUnit_posmmit_welded_austenitic_pipe.asp

Posted by probability > 2016-12-03 17:17 | Report Abuse

Rawang appears to be its CRC or HRC - scrap based based machining - slitting facility:

Klang appears to be its CRC or HRC - iron ore based machining - slitting facility.

http://www.prestar.com.my/bizActivities/steelUnit_posmmit_facilities.asp

Posted by probability > 2016-12-03 20:21 | Report Abuse

POSCO MKPC which is placed in Rawang & Klang above, product details:

http://www.prestar.com.my/bizActivities/steelUnit_posmmit_products.asp

http://www.poscomkpc.com.my/index.php/ps/product

Posted by probability > 2016-12-03 20:25 | Report Abuse

Click on the 3 images of what POSCO MKPC do:

http://www.poscomkpc.com.my/index.php/ps/service

Posted by probability > 2016-12-03 21:08 | Report Abuse

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

Extract from above:

The Government has also made a final determination that the definitive anti-dumping duties WILL NOT BE IMPOSED on:

- Tin Mill Black Plate; and
- Cold Rolled Coils of Alloy and Non-Alloy Steel for automotive end-usage.

As can be seen from the automotive steel products they are making below (bring your cursor to the images), Prestar will not have to pay any duty:

http://www.poscomkpc.com.my/index.php/ps/product


Interesting...

Posted by hewiester > 2016-12-03 22:26 | Report Abuse

Probability: shouldn't this benefit mycron tooooo....

Posted by probability > 2016-12-04 00:11 | Report Abuse

low CRC price locally is not beneficial for Mycron but beneficial for Prestar

Posted by VenFx > 2016-12-04 00:44 | Report Abuse

In general, domestically CRC will up tandemly with China global CRC steel price.

Mycron's customers might had fill up their store with crc raw materials.
Usually, restocking will repeat for every 2-3 months depend on their orders and store space.

Pay little bit of time, surely crc price will surge by next restocking activities.

Posted by IamGoogle > 2016-12-04 00:45 | Report Abuse

Everyone know CRC price in China, but does anyone know what is CRC price in Malaysia?

Posted by IamGoogle > 2016-12-04 00:46 | Report Abuse

Wealthwizard should have his magic stick to know, but where is he now? Long time didn't see him.

Posted by VenFx > 2016-12-04 01:18 | Report Abuse

Posted by IamGoogle > Dec 4, 2016 12:45 AM | Report Abuse 

Everyone know CRC price in China, but does anyone know what is CRC price in Malaysia?

Me : I think it is not too hard to find out, if someone close to the industry or have matetials enquiry to the Sales Representative.

Posted by maol > 2016-12-05 10:46 | Report Abuse

与人斗气伤身 与钱斗气穷半生

Posted by probability > 2016-12-05 16:11 | Report Abuse

TOTAL 16 MACHINES (RAWANG X9, KLANG X7) - 294,000 MT/YEAR

Imagine even if it operates at bloody HALF of the capacity - 50% discount, with an absolute margin of just RM 200 per ton, gross profit already hit 30 Million. This already translate to EPS of 13 cents! PE10 already 1.30...

And note that above is ONLY for the POSCO - MKPC Sdn Bhd placed at Klang & Rawang.

(Furthermore the above are tailored made end products which demands a better margin unlike commodity lie Rolling process in mycron or cscsteel)



...and WTF!, We have not even considered the highly profitable STEEL TUBE Tube segment below:

Prestar Steel Pipes Sdn Bhd,
Prestar Precision Tube Sdn Bhd,

(Note Mycron is currently having Margin of more than RM 550 per ton - latest quarter).

Posted by probability > 2016-12-05 17:20 | Report Abuse

when we buy a plantation counter...we also consider the land acreage available and the planted area which are fruiting.

Similarly when we buy a manufacturing company, we must consider its full processing capacity and its current utilization rate.

The Full processing capacity - provides the Growth potential without any further outflow of Cash for investment.

They did not buy those 9 Sets of HRC processing Machines & 7 Sets of CRC Machines for nothing....

Posted by probability > 2016-12-05 18:18 | Report Abuse

and if they knew it will never be utilized...they did not need to buy that many...

we investors cannot be much smarter than the business decision makers who had decided to buy the machines at such quantity.

Posted by probability > 2016-12-05 18:45 | Report Abuse

Havent start to look into these..

Tashin Steel Sdn Bhd,
Dai Dong Steel Sdn Bhd
Prestar Manufacturing Sdn Bhd
Prestar Engineering Sdn Bhd - road railing maker (clear value addition here) - fat margin!
Prestar Galvanising Sdn Bhd - there is clear value addition here.

No wonder the owners & major shareholder bought the shares actively earlier..

Posted by probability > 2016-12-05 19:08 | Report Abuse

Their CRC imported are produced by Manufacturers in Korea who does not have any duty imposed on their raw material HRC in Korea. As such POSCO Korea's CRC would be super cheap and competitive locally in Malaysia...

This partly answers why the local CRC producers are unable to raise the price effectively.

A manufacturer like Prestar who can import these CRC say at X% duty and enable further value addition like - machining will obviously have very high competitive advantage. This as a minimum will be the HRC duty Y% imposed locally - i.e , Y% - X% = 15 - 0% = 15% . This the margin edge over others...

Posted by probability > 2016-12-05 19:17 | Report Abuse

now...one may ask...why did they mention that the Megasteel closure is benefiting Prestar in their latest qtr results?

Anybody can give a guess why??

FYI i have a most probable answer for this :).

Clue: Steel Tube section margin for Mycron is currently RM550 versus RM250 before Megasteel closure.

Posted by probability > 2016-12-06 11:31 | Report Abuse

and one more intelligent could ask...why they did not say the same thing (megasteel closure benefit) in their immediate preceeding quarter?...after all the results of Choo Bee & Myron was phenomenal on immediate preceeding qtr right?


I leave that to others to think and figure out / respond /query. Coz then people might say i am cuckoo talking alone here.

Posted by KLCI King > 2016-12-06 11:34 | Report Abuse

probability very hard sell this counter, if this counter can do good, Mycron & CSC Steel should be the same, aren't they?