Posted by probability > 2017-03-24 13:40 | Report Abuse

Refresher:

CRC processing section Rawang, 9 machines: 131,000 ton/yr
HRC processing section Klang, 7 machines: 163,000 ton/yr
Steel pipe, Stainless Steel, 3 machine: 5,000 ton/yr
Steel pipe, Carbon Steel, 2 machine: 18,000 ton/yr
Steel precision Tube, 6 machines : 50,000 ton/yr

Note: 1 ton = 1000 kg, current price ~ RM 3000.
Their combined total capacity: 367,000 ton.

Even if you put just bloody RM 100 profit margin per ton of material processed (that is like 3% margin)...you will generate close to RM 40 Million profit per annum.

Actual current gross margin ~ 15% based on last 2 qtr latest.

I think the Steel Tube segment has like RM500 gross margin per ton based on the reported qtr results of Choo Bee and Mycron.

Posted by probability > 2017-03-24 13:56 | Report Abuse

http://www.thestar.com.my/business/business-news/2017/02/08/pan-borneo-highway-talks-with-brunei-firming-up/

Just advertised within the last 1 month:

http://www.prestar.com.my/careerCentre/job_opportunities.asp

Posted by Lulu La > 2017-03-24 16:00 | Report Abuse

probability...u mean prestar might get the biz from pan borneo highway?

Posted by probability > 2017-03-24 16:20 | Report Abuse

i think all local highway guardrail...comes from Prestar.
weight of 1 guardrail is about 0.5 ton per 12 meter.
Highway should have 4 guard rail / road = 2 one each line X 2 lanes

This comes to aproximately 150,000 ton per 1000 km.
it is galvanised HRC with moulding work...margins should be fat - as good as tubes or higher per ton.

Posted by probability > 2017-03-24 16:22 | Report Abuse

https://en.wikipedia.org/wiki/List_of_expressways_and_highways_in_Malaysia

i think they are also exporting to neighbouring countries like Indonesia..

Posted by probability > 2017-03-24 18:11 | Report Abuse

http://www.pinnacleinternational.net/Brands/Mystar/Docs/Catalogue%20Mystar-11.03.13(Low.Res).pdf

their storage system solutions

Posted by probability > 2017-03-24 18:51 | Report Abuse

looking at gross margin and revenue, Prestar is currently only operating at ~50% of its rated manufacturing capacity. Tubes and Storage system solution are probably the main contributors on throughput currently.

I think the Gross Margin is fairly fixed around current level (RM500/ton). The growth in revenue is where the prospects are...that seems inline with the recent job advertisement and projects surfacing...and the recent local developments (HRC sourcing due to Megasteel closure) enabling it to compete internationally for export market.

The guard rail demand due to local Highway projects are the new contributors ...and we should see that adding to its revenue going forward for the next few years..

Posted by nicky11 > 2017-03-24 23:10 | Report Abuse

Hi probability sifu, just wondering Malaysia don't have other competitor which produce highway guardrail?

Posted by probability > 2017-03-24 23:33 | Report Abuse

sorry nicky11...i think there are a few small scale suppliers..e.g Lysaght but none have the economy of scale of Prestar . The bulk should be from Prestar. I could be wrong though.

Posted by nicky11 > 2017-03-25 00:27 | Report Abuse

Hi Probability sifu, just now I checked and found few companies which supply guardrail but seems the scale not so big and even their company website is quite simple. I think Prestar will be one of the main supplier in West Msia but I am wondering is there any big guardrail supplier which based in east Malaysia which may directly benefit from Pan Borneo project. Prestar plant in Selangor, the logistic cost to east Msia is quite high too. Anyway, I believe the profit margin can cover it if there is a demand. :)

Posted by VenFx > 2017-03-25 00:44 | Report Abuse

KKB hot dip galvanising , do supply range of road furniture.

But, Prestar products are most complete in range & quality .
With recent tide output of China Upstream in upstream, road furnitures order likely to flow back to Prestar .

Posted by VenFx > 2017-03-25 00:48 | Report Abuse

Another thing to take note is, Former Sarawak CM ( Bai Mao's conglomerate )has 20% in KKB .So, KKB has it's advantage to secure pipe lining & road furnitures package in Borneo land .

Posted by nicky11 > 2017-03-25 01:14 | Report Abuse

In construction solution, I believe Prestar will growth like OKA CORPORATION BHD(current price:1.48). Besides, Prestar also offer the storage solution which may beneficial from Digital Free Trade Zone project. This will be an additional advantages to Prestar as this storage solution also can be exported to overseas.

Posted by Rocketfuel > 2017-03-25 18:44 | Report Abuse

Yeap i agree. Digital Free Trade Zone project requires huge amounts of warehousing and Prestar does manufacture those blue and orange panel racking for warehouse usage

Posted by Rocketfuel > 2017-03-25 18:47 | Report Abuse

I mean DTFZ project and Jack Ma's reional e-commerce and logistics hub

Posted by noah > 2017-03-25 20:01 | Report Abuse

in fact if we wanna relate...anything can oso be related to Digital Free Trade Zone ...

Posted by ttmmww > 2017-03-27 13:41 | Report Abuse

keep dropping

Posted by probability > 2017-03-27 15:42 | Report Abuse

Prestar has no connection with other steel counters..or has any relation to import duties...
good chance to accumulate more.

Posted by nicky11 > 2017-03-27 16:25 | Report Abuse

yalo, in case really import duties was cancelled, I thought Prestar will get the cheaper raw material? Anyway, now is just the rumor.

Posted by leont > 2017-03-27 16:38 | Report Abuse

Realise there is a sudden drop in most of the steel counters today, may I know what is going on? What rumour ?

Posted by HuatRex > 2017-03-27 16:55 | Report Abuse

I think game over for steel play theme

Posted by jojojo716 > 2017-03-27 17:00 | Report Abuse

accumulate more~ will go to RM1 very soon

Posted by nicky11 > 2017-03-27 17:45 | Report Abuse

Hi leont, just the rumour said MITI will not extend the anti-dumping duties.

Posted by leont > 2017-03-28 00:01 | Report Abuse

Annjoo directors just collected some shares in open market today... I guess it's more or less of a positive sign....

Posted by lwyy60 > 2017-03-28 09:12 | Report Abuse

Down trend, buy on weakness will test on nxt 0.
865. Long term should be ok except if it deceasing revenue n profit.

Posted by pro888 > 2017-03-28 15:35 | Report Abuse

https://klse.i3investor.com/blogs/kianweiaritcles/119191.jsp

Posted by probability > 2017-03-29 09:59 | Report Abuse

http://klse.i3investor.com/blogs/kianweiaritcles/119349.jsp

Posted by lwyy60 > 2017-03-30 11:03 | Report Abuse

Will test 0n 0.865. Then it is a critical point where it will go sideway or uptrend.

Posted by lwyy60 > 2017-03-30 11:18 | Report Abuse

tmr will decide for new weekly candle, then most fund will out for trade idea lolz...

Posted by lwyy60 > 2017-03-31 08:33 | Report Abuse

Today end season decide buy in or waiting futher down side.

Posted by nicky11 > 2017-03-31 08:45 | Report Abuse

When is the AGM for Prestar? Which to know what is their future plan & also announcement of 2 cents dividends

Posted by leont > 2017-03-31 09:44 | Report Abuse

Nicky.. yet to be announced.... maybe tgt when AR comes out

Posted by nicky11 > 2017-03-31 11:17 | Report Abuse

Hi Leont, thanks for it. :)

Posted by nicky11 > 2017-04-02 20:56 | Report Abuse

Fundamental & value for this stock is good but seldom people know this hidden gem

Posted by Apollo Ang > 2017-04-02 20:59 | Report Abuse

what don't know? already up more than 100% since last year

Posted by nicky11 > 2017-04-02 22:58 | Report Abuse

Yes, it is up but now its value is not really on par with current performance. PE is still low for it

Posted by stteck > 2017-04-02 23:27 | Report Abuse

Prestar would hibernate for while

Posted by Burhan Rahman > 2017-04-04 11:38 | Report Abuse

sell

Posted by investor77 > 2017-04-04 17:20 | Report Abuse

Can it be a flag formation, and thus bullish ? Anyway, low PE, fair DY, and very profitable company. With lots of construction work, matter of time before price goes up.

Posted by Collin Soo > 2017-04-04 17:52 | Report Abuse

Need be patient..profitable company but very low PE.. hold and buy on weakness

Posted by investor77 > 2017-04-05 17:22 | Report Abuse

Patience rewarded. Now it can only go higher for this fundamentally and technically good counter.

Hope it can touch RM1.00 !!

Posted by OnyxCapital > 2017-04-05 22:16 | Report Abuse

It's not difficult to break RM1 tomorrow with current market.

Posted by Lulu La > 2017-04-06 11:05 | Report Abuse

Onyxcapital..your not difficult become so difficult lo

Posted by kentg03 > 2017-04-07 12:02 | Report Abuse

Monday will know continue up or down

Posted by nicky11 > 2017-04-07 14:59 | Report Abuse

Recently this stock really boost high in a single day and gradually down for few days. Is it people is concern about the Steel Import duty which will be announce soon?

Posted by kentg03 > 2017-04-10 16:33 | Report Abuse

Yes, gov will announce today

Posted by nicky11 > 2017-04-11 16:30 | Report Abuse

ESOS again. Recently keep ESOS, is it company is earning and keep giving bonus to employees?

Posted by nicky11 > 2017-04-12 00:03 | Report Abuse

http://klse.i3investor.com/blogs/bfm_podcast/120421.jsp

Posted by Collin Soo > 2017-04-12 16:58 | Report Abuse

RSI 14 days only 40 - oversold.

Posted by kentg03 > 2017-04-13 15:59 | Report Abuse

news out, import tax until year 2020!