While waiting for explosive hiaptek next Q result due t 3 main catalyst above, writeback forex gain + increase steel selling price + increase 3 fold steel production volume, meantime just entitles its cash dividend first next week on 4 Jan

1. RM have strengthen from RM 4.78 in Oct 2023 to RM 4.61 today. The big unrealize forex loss incur by eastern steel in last quarter result -RM 123.4m will writeback at least partially t forex gain in next Q result.

2. Steel price have increase from 3700 to 3960

3. Eastern steel production volume increase 3 fold next Q result

Stay tune, Penang CM will announce new water traffic by end year, and start implementing new water traffic for domestic user next year

Every year, PBA subsidies domestic user water traffic as much as RM 100m, imaging if these subsidies can reduce through domestic water traffic adjustment, PBA profit can potential added up additional RM 100m more

D day is tomorrow cabinet meeting

If granted water traffic hike for domestic user, PBA profitability will leap up significantly

Soaring prices have helped fuel consolidation in the steel industry in this decade. Steel prices more than quadrupled near the start of the pandemic to near $2,000 per metric ton by the summer of 2021 as supply chains experienced gridlock.

Prices have settled back to around $800 per metric ton now, but that remains at the top end of the spectrum for steel prices over the past six years. An extended economic rebound, particularly in the U.S ad China, have helped keep prices for flat-rolled steel elevated.

The implications of this acquisition extend far beyond corporate restructuring. Nippon Steel's move into the U.S. market comes at a time when the global steel industry is undergoing significant changes, focus on manufacturing sectors like electric-vehicle batteries and semiconductors could further drive steel demand.

Eastern steel latest 3 fold capacity in upstream flat steel is also target Mexico as main export its slab steel market, indirect entry into US lucrative automotive EV industries. Once HRC mill ready operation next year sept, midstream HRC aside meet local demand, also target export market

https://www.forbes.com/sites/dereksaul/2023/12/18/us-steel-a-symbol-of-american-strength-that-floundered-sees-shares-hit-12-year-high-on-15-billion-sale-to-nippon-steel/?sh=7ac68cc47dfe

Wait for coming cabinet weekly meeting on wednesday. Water traffic hike is expected to conclude, paving for new traffic rate begin next year onward.

Alliance steel is Malaysia largest long steel producer. But, it is unlisted and wholly own by China company. The main steel product are long steel mainly for construction sector.

Eastern steel main product is flat steel, upstream slab steel, main raw material for HRC. Currently, HRC is HOT HOT HOT flat steel , mainly to produce electronic, electric car, eletrical Applicance etc

歐美明年降息機會大，屆時美元指數下降，原物料行情將走揚，若俄烏與以巴戰爭結束，只要戰後重建題材浮上檯面，「明年可能用噴的，我很有信心」。

Eastern steel recent newly expansion second phase blast furnace, have increase 3 fold slab steel production volume. Most of slab steel are for export oriented, mainly export to Turkey and new market in Mexico, which is under north American free trade zone.

Export Slab steel is use for oversea mid stream HRC production, which in turn import back to Malaysia.

Next year, Sept, eastern steel will have own HRC mill, therefore, able to increase value chain, supply own HRC to meet all Malaysia demand

Eastern steel is Malaysia sole slab steel producer, slab steel is upstream flat product, a key raw s
material for midstream HRC production.

近期大陸熱軋漲到人民幣4,000元以上，再也沒有回頭，顯示根基打得穩；由於大陸鋼價有撐，東南亞鋼市也挺住，價格止跌向上；美國行情更如同井噴般暢旺，美國熱軋底材二周來每公噸漲200美元，價格好、訂單量也多，燁輝一直接單

鋼市內需轉熱 掀起提貨潮…中鋼訂單量衝18個月高點

中鋼因應下游追單，積極規劃提升內需供應量，但當前看來，仍供不應求。業界認為，此舉將牽動明年鋼市量能，直接影響中鋼明年首季產銷。近期，中鋼業務副總劉敏雄鐵口直言「明年鋼市用噴的」，下游大戶的下單是否積極，將是最關鍵指標，值得後續關注

Don forget can entitle RM5 dividend first in Jan while waiting real boom profit in next Q result

Next Q result

1. 3 fold increase capacity from eastern steel start to contribute
profit

2. USD index ease, RM regain strength

3. Current steel price uptrend

4. Major infrastructure to begin start next year, namely penang LRT, johor LRT, MRT3, HSR

5. Eastern steel HRC to begin production in Sept 2024

Steel price uptrend only begin Nov, and positive increase selling price will reflect in next Q. Upcoming infrastructure such as LRT pPenang, LRT johor, MRT3, HSR will serve major catalyst for steel demand forward

Hiaptek 3 fold increase in slab capacity is yet to unleash as maiden production only begin in Oct 2023. It will only able to reflect in next Q result.

In additional, the adverse impact on currency will revert to favorable impact as USD strength currently diminishing , RM will regain strength forward

added last batch hiaptek at 39-39.5sen to average

Accumulated at 1.18-1.20, I happy now become one of the top 30 largest PBA shareholder.

I happy become one of the top 30 largest PBA shareholder now, accumulated 1.18-1.20, rank above 25 if based on PBA latest annual report

https://www.thestar.com.my/news/nation/2023/12/10/suggested-mechanism-for-new-water-tariffs-to-be-brought-to-cabinet-next-week

Steel price just breakout 4000 per tonnes

based on the internal agreement, ESSB plans to distribute 30% of its profit as a dividend, says Law, and this could start as early as 2025.

“Our capacity expansion will lead to multifold growth in ESSB’s revenue, with significant cost savings arising from the greater economies of scale. Hiap Teck looks forward to much greater contributions from ESSB in the immediate future,” he adds.

added more at 41.5-42sen

Law said from next year onwards, ESSB’s product focus will shift to the production of HRCs, which are widely used in downstream products such as CRCs, galvanised and pre-painted steel coils, welded steel pipes and tubes for industries such as manufacturing, automotive, electrical and electronics, oil and gas, and shipbuilding.

It is learnt that Malaysia’s demand for HRCs in 2022 was around two million tonnes, which was mainly met by imports that reached RM6 billion in value based on the current exchange rate.

Law said that ESSB aims to bridge the gap by producing 2.7 million tonnes of HRC a year.

“We will be the only HRC producer in Malaysia,” Law told reporters at a press conference before the Phase 2 project completion ceremony here on Wednesday.

In Malaysia, ESSB is the sole producer of steel slabs — a core ingredient in the manufacture of steel plates, HRCs and cold rolled coils (CRCs).

Hiap Teck's Eastern Steel to shift product focus to hot rolled coils next year

https://theedgemalaysia.com/node/689303

Eastern steel already expand long steel production 3 fold in last Aug 2023. It is now inject more capital to build flat steel HRC to be complete by end next year

bought back hiaptek at 42.5sen

Cash is piling high every quarter. Wait for final Q4 to announce first and final dividend.

Capital commitment for new land acquisition can easily fulfil by free strong cash generated every quarter.

Recurring income from its investment portfolio like mall, hotel, car park are steady increase, reap more than RM 100m net cash annually

location location location determine sellable properties project

Such strong EPS and net cash position deserve higher valuation at least PE 5x compared to current just PE 3x, upside potential is awaiting to unleash

Every quarter KSL reap strong positive cash flow from properties development and properties investment portfolio, replenishing cash hoard use for land acquisition without need to get bank borrowing. Internal fund is more than sufficient to buy earning accretive land

Matched also all order at 60sen

added more at 60.5sen

sold back 1.93

Good Q2 result

Unlike Q1 EPS due to forex gain, latest Q2 EPS is solid from properties development progress billing and hotel

Hotel room record increasing room rate and occupancy and upcoming high class is landed properties at reclaim island

bought at 59sen

Capitalisation rate, indicates the income a property asset is expected to generate versus how much it cost

Assuming a cap rate of 5.5%, KSL current investment properties generate more than RM 100m could therefore fetch RM2 billion, which represent 1.8 times its current market capitalisation,

Capitalising investment properties on the REIT investment theme is a huge catalyst for the company as KSL can park its properties investment income under tax rate 10% instead of company holding level at 25% tax rate on condition at least 90% income from REITS payout as dividends

Take note KSL properties investment like mall and hotel are highly profitable, reap more than RM 100m net profir annually. These profitability is expect to increase higher with newly open Esplanade mall and hotel.

if opt REITS listing , KSL can unleash even higher value to its NTA. Through REITS listing, KSL not only can maintain majority stake, but also can enjoy tax benefit 10% instead of current 25%. The REIS listing can therefore fetch as much RM 2 billion based on 5.5% yield, These REITS listing if materialize at RM 2 billion is 80% higher than entire KSL market cap now only at RM 1.2 billion

bought suncon at 1.89-1.90

Impossible to privatize at RM 1.2 vs. NTA RM 3.5 as privatization need 90% minority acceptance before takeover can materialize.

While, privatize to based on NTA is hard, but, composition of KSL NTA is highly liquid include 2 mall, 3 hotel, and prime land in Johor especially pulai near skudai which easy accessible to upcoming RTS link. As much as 40sen/share in NTA is also form by cash.

bonus share, dividend or privatize?

It also imply that once Myeg establish Zetrix blockchain platform, any sale of zetrix token is almost PURE PROFIT. The more these zetrix digital token sale, the higher profit

The increase in Revenue of RM9.25 million and PAT of RM8.75 million was
primarily due to: i) contribution from our Zetrix blockchain platform; and ii) contribution from the sale of Zetrix tokens implying zetrix business fetch indeed super high profit margin >90% !!!!

ready to fire up

Added for last batch ksl at 1.15