@albertwkm,

Malaysia aims to be carbon-neutral by 2050.

No more new coal-fired power plants.

No more new iron mill.

@superman7181

Be polite and respectful. I am sure you won't talk like this in front of your parents and children, correct?

Only children will choose, adult will take all :)

只有小孩才选择，大人全都要 ：）

Lucky I have AYS too :)

The Edge has made bellow article correction after I emailed them. Very efficient, good!


...Eastern Steel, an integrated iron and steel mill, is 35% owned by Hiap Teck, Shanxi Jianlong Industry Co Ltd (60%) and Chinaco Investment Pte Ltd (5%)...

https://www.theedgemarkets.com/article/hiap-teck-posts-sixfold-rise-4q-net-profit-higher-steel-prices-and-share-profit-%C2%A0%C2%A0

美基建法案表决延月底 拜登深信可过关
2021年10月03日

https://www.enanyang.my/%E5%9B%BD%E9%99%85/%E7%BE%8E%E5%9F%BA%E5%BB%BA%E6%B3%95%E6%A1%88%E8%A1%A8%E5%86%B3%E5%BB%B6%E6%9C%88%E5%BA%95-%E6%8B%9C%E7%99%BB%E6%B7%B1%E4%BF%A1%E5%8F%AF%E8%BF%87%E5%85%B3

@Muyutin,

Good. Please sell all. Better don't buy.

Eastern Steel 2020 revenue = RM1.43 billion

Production = 794,268 MT

Average Selling Price = RM1.43 billion / 794,268 MT = RM1800 per MT

Assuming selling price RM2500/MT and production 800,000 MT,
Eastern Steel 2021 revenue = 2500 x 800,000 = RM2 billion

ESSB exports 70% of its steel products.



Hiaptek 2020 annual report (page 14):

For the financial year under review, ESSB achieved revenue of RM1.43 billion driven by strong acceptance and demand for its
products in both the domestics and overseas market. Malaysia and South East Asian markets are net importer of billets.
In FY2020, ESSB produced a total of 798,512 MT of steel products, of which, slabs and billets were 70,196 MT and 728,316 MT,
respectively. In the same financial year, a total of 794,268 MT of steel products were sold comprising 70,196 MT of slabs and
724,072 MT of billets. Domestic sales volume was 231,549 MT while export sales volume was 562,719 MT.

Iron ore mining business of Hiaptek is very small.

2020 revenue is RM3.19m (profit is RM1.49m).
2019 revenue is RM1.21m (profit is RM0.29m).

I just emailed The Edge to request article correction.

xxx

Hi,

In your article titled "Hiap Teck posts six-fold rise in 4Q net profit on higher steel prices and share of profit", paragraph 3 you stated that "...Eastern Steel, an integrated iron and steel mill, is owned 35% by Hiap Teck, with the remaining stake held by Shougang Group of China...."

https://www.theedgemarkets.com/article/hiap-teck-posts-sixfold-rise-4q-net-profit-higher-steel-prices-and-share-profit-%C2%A0%C2%A0

The correct shareholding should be Hiap Teck (35%), Shanxi Jianlong Industry Company Limited (60%) and Chinaco Investment Pte.
Ltd. (5%).

Please check and make correction in the article. Thanks.

I forecast China Jian Long (major shareholder of Eastern Steel) will enter Hiap Teck as major or substantial shareholder end of this year or next year.

Iron ore is material for steel production.

China is the biggest steel producer. China want to reduce steel production, hence demand for iron ore is reducing and steel price is increasing.

You check the latest price (RM/MT) at MSI's website (https://malaysiasteelinstitute.com/)

Iron Ore RM 427
Billet RM 2,800 – RM 2,950

Current high billet price means very good margin for Hiaptek :)

@positiontrader,

CFO gave 3 months' notice la, not immediate resignation.


...Ms Yeo has given the Company 3 months' notice period, and her last day with HTVB will be on 31 December 2021 to ensure a smooth transition to her successor...

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3197778

@Kevin Tam,

When you stated that "...iron ore prices has dropped, at rational forecast, iron billets n slabs should adjust down by at least 25% …",

any reason or calculation for your forecast?

Share price of steel companies in US, China, Taiwan, India already shoot to sky...when it is our turn? :(

@LouisLim,

Do not trust me. Trust yourself, else you could not hold.


I ask myself, if I am right, why the price keep dropping???


The big boss TSLaw has 75,032,819 RCUIDS (Bond) at RM0.50 each and expired on 23/06/2021. TSLaw can request redemption but he choose to convert the bond to shares instead.


The big boss TSLaw has 75,032,819 warrant which expired on 23/06/2021. TSLaw choose to fork out RM37.52 Million to convert the warrants to shares instead.


I believe not many people here forked out RM37.52 Million to buy Hiaptek (maybe except KYY and OTB)


On the first day of CTOS listed in Bursa Malaysia, I entered at RM1.61. For a very long time, CTOS stayed at RM1.50. Everyone can enter cheaper compared to me. I am of course very frustrated. But I persist until today.


I myself won't sell Hiaptek because I am waiting for good news and for the share price to shoot up. But for others, I think they can wait first :)

On 31/07/2017, ESSB reported impairment loss of RM266.15 Million.
On 31/12/2019, ESSB reported impairment reversal of RM50 Million.
On 31/07/2020, ESSB reported impairment reversal of RM50 Million.
On 31/07/2021, ESSB reported impairment reversal of RM66.15 Million.

I forecast that ESSB will report impairment reversal of RM50 Million on 31/07/2022 and another RM50 Million on 31/07/2023.

Alternatively, if Hiaptek want more explosive profit, then ESSB will report impairment reversal of total RM100 Million on 31/07/2022.

Hiaptek 2021 net profit (Excluded Eastern Steel and impairment reversal) = RM87.51 Million

In FY ended 31/07/2021, Eastern Steel (ESSB) reported an impairment reversal of RM66.15Million.
Excluded the impairment reversal, annual core profit of ESSB is RM151 Million.
Hiaptek 35% portion of profit = RM52.85 Million

Hiaptek 2021 net profit (Included ESSB and Excluded impairment reversal)
= RM87.51 Million + RM52.85 Million
= RM140.36 Million

Hiaptek has 1626.6 Million share
EPS = 8.63 cent


For FY2022, I forecast conservative 20% profit increase, ESSB 2022 core profit will be RM181.2 Million.
Hiaptek 35% portion of profit will be RM63.42 Million
For FY2022, ESSB probably will also report another impairment reversal of RM50 Million (not considered in above profit calculation)

I forecast Hiaptek 2022 net profit (Excluded ESSB) = RM40 Million x 4 = RM160 Million
Hiaptek 2022 net profit (Included ESSB)
= RM160 Million + RM63.42 Million
= RM286.84 Million
EPS = 17.63 cent

Nobody sense the excitement of Hiaptek in their Q4 report?

...strong performance...much-improved results...sharp turnaround...continued strength of steel prices...expected recovery...exciting opportunities...China continus to pursue its carbon emissions target and production restrictions and relying more on imports for general purpose items...

During current FY, around 358 M new shares converted from bonds (~200 M) and warrants (~158 M) at RM0.50 each before the bonds and warrants expires on 23/06/2021. Why they want to convert if they do not have high expectation for Hiaptek?

From the replies here, it is clear that only minority think the steel sector will be good.

It is actually very good..

@jeff61,

Personally I think business of Hiaptek and Annjoo will be good because they are upstream steel player and they export their product to China.

Now low price of iron ore will be very good to them, and China need more steel import.

China want to reduce carbon emission and pollution, and they do not have enough electricity supply, so they are reducing steel output.

All Malaysian steel companies will earn more money in future 1 year, but upstream steel companies will earn more.

Also, China steel companies will expand to South East Asia and Malaysia will be surely one of their destination. I think it is matter of time China will enter Hiaptek as shareholder.

@John Lu,

We here cannot control short tern share price movement la, only the funds could do it.

I am not day trader so I am not too worry. We wait to see if the steel companies can earn more or not.

Now China steel companies could not longer expand their capacity. It is very possible they will expand to other country by M&A.

For Malaysia, no new steel manufacturing license will be issued.

@jeff61,

I prefer upstream steel company which is doing export business.

Local market is still weak. In near future, I believe China steel listed companies will have corporate activities in other countries (possible in Malaysia too)

I did some calculation. If no FMCO, Hiaptek has no problem to achieve net profit of RM100M.

Total shares = 1,418,528,000 shares
EPS = 7.04 cent
For 1 year, EPS = 7.04 x 4 = 28.16 cent

Check price of steel billet here:
https://malaysiasteelinstitute.com/

Annual capacity of Eastern Steel is 1.5 Million MT of steel slab/billet.

Current price of steel billet is RM2800-RM2950.

Estimated revenue of Eastern steel for forward year
1.3 Million x RM2500 = RM3250 Million

10% net profit margin = RM325 Million

Hiaptek's 35% portion = RM325 Million x 35% = RM113.75 Million

Total shares =1,731,612,674

EPS (Eastern Steel profit only) = 6.57 cent

Do you math...

Or maybe we are all WRONG

I think the investors still have doubt about the steel sector, there is why the window to collect cheap is still exist.

Dato‘ 讲股票：怡保花园商托IGB Commercial REIT。南洋商报没有做好功课！

https://www.facebook.com/212046143060081/posts/910324039898951/

To China government, Evergrande is manageable la...

I have AYS, Annjoo and Hiaptek.

I agreed with OTB's sharing and entered AYS at RM0.49, add more on the way. Average buying price is RM0.576.

Thank you OTB. Buying power of this forum is too small comparing with the funds, so do not accuse OTB want to induce you to buy AYS to support the price.

OTB is a man with honor and ego. I respect him.

I have AYS, Annjoo and Hiaptek.

I agreed with OTB's sharing and entered AYS at RM0.49, add more on the way. Average buying price is RM0.576.

Thank you OTB. Buying power of this forum is too small comparing with the funds, so do not accuse OTB want to induce you to buy AYS to support the price.

OTB is a man with honor and ego. I respect him.

I think Ann Joo's export business will be better and better

@nakata, I was told the hardware shop owners are always the first batch to buy steel stocks because they are the insiders.

I think the Chinese government has been managing EVERGRANDE matter for past one year. That mean it is manageable and not an unexpected crisis.

I switched some capital from Hiap Teck to Ann Joo today and yesterday

I switched some capital from Hiap Teck to Ann Joo today and yesterday

Welcome all to discuss reasonably and politely ：）

Dato‘ 讲股票：钢铁侠系列1！重押AYS！

https://www.facebook.com/212046143060081/posts/900464184218270/

Dato‘ 讲股票：钢铁侠系列1！重押AYS！

https://www.facebook.com/212046143060081/posts/900464184218270/

Market is normal today

Market capitalization (RM Million)
2/9/2021 10/9/2021
ANNJOO 1,327.24 1,625.61
HIAPTEK 943.00 1,055.61
SSTEEL 539.66 542.64
CSCSTEL 528.20 524.4
LIONIND 430.74 441.51
LEONFB 347.82 385.33
ASTINO 345.38 357.72
CHOOBEE 275.23 289.72
PRESTAR 257.79 274.01
AYS 201.62 266.29
MASTEEL 235.42 237.68
MELEWAR 190.49 188.69
KSSC 105.98 100.22

Market capitalization (RM Million)
2/9/2021 10/9/2021
ANNJOO 1,327.24 1,625.61
HIAPTEK 943.00 1,055.61
SSTEEL 539.66 542.64
CSCSTEL 528.20 524.4
LIONIND 430.74 441.51
LEONFB 347.82 385.33
ASTINO 345.38 357.72
CHOOBEE 275.23 289.72
PRESTAR 257.79 274.01
AYS 201.62 266.29
MASTEEL 235.42 237.68
MELEWAR 190.49 188.69
KSSC 105.98 100.22

Maybe Uncle Koon is pushing again..

@MandyLee2728,
Although you did not ask me, I would like to give my opinion too. I think Hiaptek will reach RM1 eventually. Short term speculation may have loss, long term (around 6 month) should reach RM1.

Disclaimer: I am not recommending you to buy or sell shares. All investment is your own decision and your risk only. :)

AYS was listed in 2012. Current major shareholder of Hiap Teik entered Hiap Teck in 2010. They finally enjoy high share price since listed so many years ago. Expected more corporate activities from this two companies.

However I suggest to use PE as reference only.

If forward EPS = 26 cent, current price = 62 cent, then PE=2.38