Sector: flat steel
-Taiwanese- owned steel producer that specializes in galvanized steel products and colour- coated steel products for the building material industry under proprietary brand names – realzinc™ and realcolor ®.
Stock information (as on 22/7/2022):
Market capital: 444 milion
Number of share: 380million
Stock price: RM1.17
Net cash company
Year | 2018 | 2019 | 2020 | 2021 | 2022 (YTD) |
Revenue (million) | 1,382 | 1363 | 1080 | 1474 | 455.1 |
Profit (million) | 21.9 | 34.8 | 37.0 | 86.1 | 12.1 |
EPS (sen) | 5.23 | 9.42 | 10.02 | 23.31 | 3.26 |
Profit very much depends on ASP of steel (Cyclical business)
https://tradingeconomics.com/commodity/steel
Dividen:
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022(YTD) |
EPS | -5.72 | 14.52 | 18.63 | 16.19 | 5.23 | 9.42 | 10.02 | 23.31 | 3.26 |
DPS | 3 | 8 | 14 | 10 | 4 | 6.6 | 7 | 14 |
|
DPS/EPS | - | 55% | 75% | 62% | 76% | 68% | 69% | 60% |
|
Dividen policy: distribute at least 50% of EPS, declare once/year (usually on April/May)
Latest acquisition:
Nil
Risk associated with business:
1. Economy downturn with reducing steel demand (manufacturing sector, and construction sector)
2. China zero policy (since top steel consuming country is China)
3. Cyclical business
4. Highly competitive
Strength:
1. Hugh case reserve- to withstand cyclical nature of business
Flat steel company and its cash/borrowing (based on information on 15/7/2022)
Company
| Market capital (million) | Cash and cash equivalent | Borrowing | Net Cash/debt company |
HIAPTEK | 462 | 144,204 | 378,602 | Debt |
CSCSTEL | 402 | 246,086 | 35,000 | Cash |
CHOOBEE | 254 | 52,916 | 3,500 | Cash |
ULICORP | 213 | 96,364 | 49,941 | Cash |
AYS | 179 | 44,564 | 441,191 | Debt |
EMETALL | 174 | 13,237 | 207,900 | Debt |
TASHIN | 171 | 33,572 | 64,534 | Debt |
MYCRON | 148 | 84,095 | 140,819 | Debt |
MELEWAR | 148 | 89,374 | 140,819 | Debt |
KSSC | 91 | 11,253 | 72,239 | Debt |
ATTA | 75 | 25,453 | 5,183 | Cash |
LSTEEL | 66 | 26,603 | 79,490 | Debt |
YKGI | 52 | 6,325 | 92,578 | Debt |
YLI | 27 | 679 | 41,908 | Debt |
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