prestar is a finish product producer...it deserves a greater gross profit margin than current. its not a bulk manufacturer like Masteel or Ssteel..or Annjoo...
there is a lot of value addition per unit ton steel processed..
At price 1.03 now, its PE at around 7.4. With current steel theme and incoming QR should be good, Prestar is deserved for better PE. Now is only the beginning of people giving a fair judgement on its value.
this disposal however, add to the fundamental of this counter. 1. Vietnam operation disposal will not reduce future earnings because it has never contributed to Prestar. 2. Disposal at a gain means Prestar fair value is higher than it carrying value of RM1.33 per share. 3. proceeds of RM22m can reduce its borrowings and interest expense. Savings approx RM1.1m or 0.6 sen per annum
It is one of the 30 hot penny stocks by EPS identified in this week Focus Magazine
LeonFB not in my list too. Cost of re-allocation to new factory and rather high LeonFB debt making me hesitant to buy LeonFB. If LeonFB is strong cash laden company, it would have given special dividends after selling few pieces of land. LeonFB approved1.5 cents as dividends without any special dividends. To me, this appeared fishy with its company cash flow. Too dangerous to be shareholder of LeonFB compared with Prestar. Prestar is safer.
That's what I think also for leonfb. Prestar debt quite high also if compared other stock I have in term of ratios. Cash yielding wise prestar better. Near 30%, but interest expenses killing them. They should start parring down debts to improve net profit. With good mkt condition for steel, I believe it's not hard to do that. Look at annjoo as a superb example If know how to managed well, turn around big fat profit is really possible.
which is why the sale of Prestar Vietnam asset comes into the scene... once everything is finalise the management will eventually cut on their borrowings... which is a good....
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 361 views | 2 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11696 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
shunfeng2032
153 posts
Posted by shunfeng2032 > 2017-05-02 09:40 | Report Abuse
wah...ayam jantan kereta producer stock also so hot? really bull market coming.