Sasword hahaha. U believe it or not it will touch 3.30 again within a week. Hahaha.

The mistake that I discovered: Should be HIGH instead of LOW single digit revenue growth in USD for FY21.

I guess it is close to the time to re-open, probably on 1st Sep. Maybe government will seize the opportunity to announce the permission before the National Day.

Convert to Liihen :)

Big thank you to Cherry88 and BPPLAS management. Excellent result and generous to minor shareholders.

https://www.google.com/amp/s/amalmedia.co/2021/08/12/30000-pekerja-sektor-perkayuan-divaksin-segera/amp/

According to this article, MENTERI PERUSAHAAN PERLADANGAN DAN KOMODITI (from PAS) will help the manufacturers to grant the permission to resume operation.

https://www.sinchew.com.my/content/content_2528632.html This is the news that about one third of the furniture workers in Muar have received 1st dose. If this started from 02 Aug, based on this rate, by end of August all of the 30k over workers in Muar (all furniture companies) would be able to receive 1st dose and and about one third of these will complete 2nd dose.

Looks like the price for 2 doses is RM 85 per pax. Anyone got any idea how many worker Liihen group hires?

@cherry88 the vaccination via PIKAS at Muar is still in progress according to some news. Do you know when Liihen would be able to complete first and 2nd dose? Thanks.

This fiscal year should be able to achieve EPS RM 0.90 +/-.

Base on sales figure, next quarter report EPS should be higher y-o-y but achieving less q-o-q.

Negative side of this stock is that its profit is hit by the lockdown. Positive side of this stock is that it is not going to loose the market share (future sales) because it generates most of the income from domestic market. It will survive this pandemic, may distribute less dividend this year but EPS should be able to recover in next Fiscal year. If you're holding this share, your investment should be safe but may have to expect less dividend this year.

I think Uchitec will stay at RM 3++ for quite a long time. This is a dividend share and you can expect dividend of RM 0.18 per share each year for the next 5 years. This dividend yield is almost 3x the current FD rate, so to have part of your money invested in this kind of stock for steady stream of cash flow is a good strategy to stabilize the entire investment portfolio while you allocate the rest of your money in more adventurous shares / business.

Thanks JKing

Hi JKing, mind to share the criteria you used to estimate the 5-7 cents EPS? Thanks

https://www.enanyang.my/%E6%9F%94%E4%BD%9B/%E9%BA%BB%E5%9D%A1%E5%B7%A5%E4%B8%9A%E7%96%AB%E8%8B%97%E6%8E%A5%E7%A7%8D%E4%B8%AD%E5%BF%83-8%E6%9C%882%E6%97%A5%E6%8A%95%E5%85%A5%E8%BF%90%E4%BD%9C

When it reopen for business?

This is 3x of Johor's population

https://www.thestar.com.my/news/nation/2021/07/10/almost-13-million-doses-of-covid-19-vaccine-to-arrive-in-johor-this-month-says-tmj

Hi Cherry88, I'm not sure if the margin in Q2 is expanding as resin price increases sharply in Q2 compares to Q1.

I think someone has been waiting for Kenanga's report to sell :))

Almost at the end of the tunnel. Wait for one more week (probably this Friday) it should be able to turn around following some good news.

Why sudden drop?

Resin price rise very steeply since March this year. Have to be careful.

Furniture is labor intensive business. So lock down or run at reduced capacity has a great impact to the EPS.

Anybody know what kind of furnace is used by CSCSTEL?

So I think the bottom is above RM 3 because there is a thick dividend cushion.

The result is impacted by one-off factors so don't expect a deep dive of the share price unless it gives you another poor quarter. The EPS will normalize in Q2. What you saw is already in the past. I think the latest circumstance is quite good and that's the reason behind the higher dividend declared. Just my 2 cents here.

Even if at RMB 5,350 (equivalent to RM 3,470) a ton our steel mills will be laughing all the way to the bank.

Q2 profit will recover to 10 sen per share if no shut down again. Q1 profit drop mainly due to extra labor cost following 4 subsidiaries shut down for 4 weeks long, of which the cost is not transferrable to customers.

Hi Mikecyc thanks for the div policy info. If div policy is min 50% payout then I think there will be special div before end of this year. :) Profit will be much higher in Q2 I guess. Although steel is cyclical I think there's some structural change due to new policy in China. So this is the beginning of the new era where margin for steel mill will be a lot healthier in 2021 - 2030. China no longer needs a lot of steel for infrastructure so they dont have to maintain at extremely cheap price but a more "reasonable" price for overall good of their steel companies.

Hi @Stockraider / @AngryBird, is there any dividend policy announced by CSC? Is it minimum 50% payout ratio? Thanks.

My estimation is based on average iron ore, coal, limestone in Apr & May. I'm taking HRC selling price for reference because I don't have CRC reference price. CRC price should be higher than HRC so I think my estimation is conservative. Assumption is based on 128,933 metric tonne output / sales in Q2.

Hi @stockraider & @AngryBird, mind to share if you do estimate CSC 2021 Q2 EPS? My estimation is RM 0.10 per share. Is it the same as you? Thanks.

Operating profit for Q1 2021 alone is 30 mil which is two third of the profit in the whole year of 2020.

After reading the report more carefully, most of the CSC product are for local market. However, I am expecting next quarter EPS should be a lot better than the last quarter. It doesn't surprise if the EPS double q-o-q. Look at Choo Bee's latest quarter report.

Let me guess... EPS Q1 2021 would be around 8 sen per share

The increasing EPS should be a good enough evidence. EPS of coming quarter (Jan-Mar 2021) can only be better than the last announced quarter.

Hi Stockraider, it will be depending on the commercial agreement between the supplier and customer. In recent CSCStel report it did mention they benefit from the steel price hike because they could export at higher prices.

Malaysia motorbike TIV for Q1 2021 is about equally good as Q4 2020. I think HLIND will be doing equally well compares to the last announced quarter. Let's see the quarter report before end of this month.

The current trend and new normal is to work from home. Good coffee is almost basic life standard for high income people in the EU. How could they miss this in their home office? They need to buy one in order to enjoy good coffee at home as they no longer have the access to the one in their office building anymore for at least another year.

China is not likely to change the policy as they have words from their president Xi Jin Ping to curb capacity to reduce CO2 emission. U turn is not likely to happen in that country in a short term.

I think the sudden drop is more likely due to dented investors' mood when our government announced MCO 3.0 and there's a possibility to tighten the control. China is not barring their factories from exporting but imposing an export duty. Some of the economist in China believe this is a step to transfer the iron ore price hike pressure to the US as the US is the largest importer of steel. This will create inflation pressure to the US and increase the cost of Biden's plan to build infrastructure. This is because China does not have negotiation power on iron ore prices so the best thing China could do is to transfer that pressure to the US who has a greater political influence to Australia. Also China is trying to consolidate and merge the steel mills in China in order to gain a better price negotiation power for raw material. One of the strategic objective from this move is to increase the profit margin. Therefore, China is planning for a structural change in this industry. On the other hand, India being a steel exporter that owns 5% world market share back in 2019 is now suffering serious Covid pandemic which has a great impact to their steel factories. Many of the factory operation is negatively impacted as the oxygen needed for the furnace operation is diverted to support lives in hospitals. This will further creates the shortage of steel supply during this period and strengthen the commodity price. Expansion of steel mill capacity takes years so this loss of supply cannot be replenish quickly by mills in other countries except China. Unless China lifted the export duty, I don't expect steel price to be drastically softened in near future.

I dont think CSC is involved in mining. CSC is Taiwanese company. The share of mother company is quite bullish. Hot rolled steel is more used in manufacturing (example, car body). Q1 2021 Malaysia TIV double digit growth y o y so steel demand should be high but I'm not sure if CSC benefit from direct order from local car maker. Its GI plate is also can be used to make structures for warehouse racking system. Warehousing should be booming thanks to the rapid growth of online business and trade. Therefore local demand should be robust.

http://www.shfe.com.cn/en/products/Hotrolledcoils/

@Joseph2020, main product of CSCStel is hot rolled steel panel, not steel bar

Expecting very good quarter result to be announced soon

@Hui_k_c because some people need to cash out to spend on CNY.

When the EPS recovers to >20 sen per share in next quarterly report the share price will touch RM 9. Let's see what happen by end of this month.