Posted by paperplane2016 > 2017-04-28 10:46 | Report Abuse

Look at southern steel. All STEEL play 2nd round coming!

Posted by probability > 2017-04-28 12:22 | Report Abuse

hopefully break 1.0 soon..

Posted by i7trader > 2017-04-28 12:29 | Report Abuse

Annjoo surging long time ago, while Prestar just starting engine... vroom

Posted by i7trader > 2017-04-28 12:30 | Report Abuse

Should break 1.02 and sustain then happy ending today! Next week should have good show.

Posted by Wawai Samah > 2017-04-28 12:30 | Report Abuse

big resist at 1.02

Posted by leont > 2017-04-28 12:31 | Report Abuse

Southern steel posted a good result that's why ...

Posted by paperplane2016 > 2017-04-28 12:34 | Report Abuse

this stock...........let me disclose only later

Posted by leont > 2017-04-28 12:42 | Report Abuse

After lunch RM 1 go go go

Posted by i7trader > 2017-04-28 13:35 | Report Abuse

http://www.malaysiastock.biz/Company-Announcement.aspx?id=969391

Posted by i7trader > 2017-04-28 13:37 | Report Abuse

Asset Purchase Agreement entered into between Prestar Industries (Vietnam) Co., Ltd. ("PIVCL") and Thai Binh Shoes Joint Stock Company. Disposal consideration, including 10% Value Added Tax, of Vietnamese Dong118,800,000,000/- (equivalent to approximately RM22,710,763/- at he exchange rate of RM1/- = VND5,231/- as at 27 April 2017).

Posted by i7trader > 2017-04-28 13:37 | Report Abuse

Is this good news? Haha

Posted by i7trader > 2017-04-28 13:42 | Report Abuse

Expected gain to PRESTAR Group
-----------------------------------
The Group is expected to report a net gain of approximately RM8.0 million after
deducting the relevant expenses associated with the Disposal i.e. Agent’s commission, legal fees and tax. However, this amount is subject to change due to the fluctuation of foreign currency rates from time to time.

Posted by i7trader > 2017-04-28 13:47 | Report Abuse

8 mil equal the net profit for last quarter? Oh my goodness!

Posted by i7trader > 2017-04-28 14:08 | Report Abuse

Although bank borrowing could be as high as 226 mil, but for the future expansion is great enough, as we can see the inventories on hand is 180 mils as well. So, let's see the coming performance.

Posted by Invest33 > 2017-04-28 14:11 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5413005

Posted by nicky11 > 2017-04-28 14:22 | Report Abuse

"The Group is expected to report a net gain of approximately RM8.0 million after
deducting the relevant expenses associated with the Disposal i.e. Agent’s commission,
legal fees and tax. " . RM8 million should be contributed ~ 4.2 EPS.

Posted by Collin Soo > 2017-04-28 14:26 | Report Abuse

Hope to close above RM1 today!

Posted by Remisier > 2017-04-28 14:49 | Report Abuse

Good news for Prestar

Posted by Remisier > 2017-04-28 14:49 | Report Abuse

My target price is around 1.9 to 2

Posted by nicky11 > 2017-04-28 14:56 | Report Abuse

If we take conservative way to calculate the share value, incoming 2 quarters each EPS hit 4 cent
Total EPS 4.8+ 4.31+4+4 + 4.2 cents(from 8 million)= 21.31.
PE 8 times , the share value will be RM1.70.
PE 10 times , the share value will be RM2.13.

Posted by skyjet > 2017-04-28 15:14 | Report Abuse

Prestar so sexy

Posted by skyjet > 2017-04-28 15:14 | Report Abuse

sapu

Posted by i7trader > 2017-04-28 15:15 | Report Abuse

It is not surprise if next next quarter result suddenly eps jump up 8 cents... :p

Posted by CaiShenYe > 2017-04-28 15:46 | Report Abuse

wa pe only 8

Posted by nicky11 > 2017-04-28 16:21 | Report Abuse

The recent 4 quarter EPS is 13.89 cents and with share price at 98 cents , PE is only 7.07. One more thing, 2 cents dividend will be given on 16 June.

Posted by leont > 2017-04-28 19:48 | Report Abuse

When the market was bad Prestar managed to maintain profitability.. when the market turned well Prestar able to adapt and absorbed the good market condition well... if market remains optimistic this year I believe Prestar hitting 1.50 to 2 ringgit in near future would not be a problem....

Posted by leelc99 > 2017-04-28 20:19 | Report Abuse

Jumped on the band wagon together with the folks in here finally.

Posted by paperplane2016 > 2017-04-28 22:27 | Report Abuse

Omg... Why so sudden. Damn, need to fasten my collection mode Liao. Kanasai

Posted by leelc99 > 2017-04-28 22:49 | Report Abuse

KUALA LUMPUR (April 28): Prestar Resources Bhd is disposing of its plant at Song Than 3 Industrial Park in Vietnam for VND118.8 billion (RM22.71 million) as part of plans to shift its manufacturing operation back to Malaysia.

The steel maker is expected to report a net gain of RM8 million from the disposal.

Posted by nicky11 > 2017-04-29 00:20 | Report Abuse

Hi Paperplane sifu, u haven't sapu enough meh? I was thought u grab alot recently. Lolz

Posted by nicky11 > 2017-04-29 00:22 | Report Abuse

Really didn't expected suddenly they want to sell Vietnam plant and move the production back to Malaysia.

Posted by paperplane2016 > 2017-04-29 08:46 | Report Abuse

Not until my target yet.....I am thinking initially all these good news won come so fast....damn

Posted by paperplane2016 > 2017-04-29 08:46 | Report Abuse

Must be good margin here as the new policy very favorable.

Posted by Collin Soo > 2017-04-29 10:11 | Report Abuse

paperplane2016, what is your target price for this counter?

Posted by paperplane2016 > 2017-04-29 22:21 | Report Abuse

I follow stock god. He said 1.90 plus plus. But for me 1.80 good enough lah

Posted by paperplane2016 > 2017-04-29 22:26 | Report Abuse

And, it is conservative target by using pe10, by now the favorable condition of steel are firm to be, I guess applying pe15, shall not be too over.

Posted by paperplane2016 > 2017-04-29 22:28 | Report Abuse

If things work favorable for prestar, I guess setting tp of 2.80 shall not be too over estimating for prestar next 3 years

Posted by nicky11 > 2017-04-30 00:03 | Report Abuse

The Edge also cover abit on Prestar recent news too. Shifting plant back to Malaysia will improve the cost effectiveness? If yes, the profit margin will be improve and will be showed in incoming quarter result
http://www.klsescreener.com/v2/news/view/226501

Posted by nicky11 > 2017-04-30 00:06 | Report Abuse

Recently Prestar kuat ESOS and make the share price was stagnant at around ~90 cents. High ESOS rate indirectly mean business is growing? Hopefully it can move soon

Posted by paperplane2016 > 2017-04-30 00:09 | Report Abuse

Haha. Just wait patiently. RM1 margin stock

Posted by Collin Soo > 2017-05-01 10:20 | Report Abuse

Annual Report pg 12: With the improvement in the business conditions in steel industry since early part of the year as mentioned above, profit before tax for the year under review was substantially higher at RM39.8 million as compared to RM20.1 million in the same corresponding period of last year. A 98.2% improvement in the profit before tax marked a significant record for the Group. The main reasons of such improvement were due to better sales margin obtained from more reliable overseas material suppliers with better pricing since first quarter of year 2016, after the discontinued operation of a large local mill as well as rebounded steel prices.

Posted by soonadol > 2017-05-01 17:28 | Report Abuse

Hi @probability sifu. From where you find that Prestar is currently running 50% of its rated capacity?

Posted by probability > 2017-05-01 18:27 | Report Abuse

i cant recall where i had mentioned that...Prestar has so many manufacturing facility..pls share the statement i had mention earlier for me to recall what i could have meant.

Posted by Collin Soo > 2017-05-01 18:54 | Report Abuse

Hope tomorrow the price can break 1.00.

Posted by VenFx > 2017-05-01 18:59 | Report Abuse

Prestar has the best Wheel barrow for its lasting value.
Complete range of road furniture.
Prestar care for value.

Posted by soonadol > 2017-05-01 22:06 | Report Abuse

probability 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..
24/03/2017 18:51

Posted by probability > 2017-05-01 23:30 | Report Abuse

only if use ~50% of the total throughput (367 ton/yr) x RM3300/ton (which is the price of steel approximately) divided by 4 qtr per year you get a revenue close to its reported latest qtr revenue of ~ 150 Million.

the price of steel (especially finished products) cannot be cheaper than 3300/ton...and as such if you use a higher value...the estimated throughput would be even lesser.

As such the 50% estimate is probably still on the high side. Significant un-utilized capacity is there.



Posted by probability > Mar 24, 2017 01:40 PM | Report Abuse X

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 > 2017-05-01 23:37 | Report Abuse

another possible explanation is if it involves inter-segment sales....even then i would say at most its only operating at 60% of its capacity.

Posted by nicky11 > 2017-05-02 09:25 | Report Abuse

It breaks RM1 already....

Posted by paperplane2016 > 2017-05-02 09:25 | Report Abuse

Add more, 1.02. I still got another 50% more too add