Posted by pingdan > 2015-04-09 13:18 | Report Abuse

Extended anti dumping policy does not mean profit will increase. Just profit will not dropping only. Euro dollar not performing well plus the Greece crisis. Sorry to say. I did not see any potential profit improvement in this share based on last quarter result

Posted by Icon8888 > 2015-04-09 13:30 | Report Abuse

Pingdan u r right, that is to ensure profit will not drop, instead of increase

I think they will be affected by Euro decline if their sales is in Euro

But it could be in USD, I am not able to find out

Uchi sells primarily to Europe but their sales are almost entirely USD denominated

Posted by pingdan > 2015-04-09 13:47 | Report Abuse

You can see from annual report page 59 (latest) on trade receivables, as most of the trade receivables are denominated in US dollar (RM43 million vs RM15million). Most likely they are trading in USD if using trade receivables assumption. Probabily the US dollar will be improving the result but euro dollar loss will also drag down the profit a little bit. Most probably 4sen eps for next quarter and 16sen per year. As today price 1.54 with PE10 only will reach around 1.60. The dividend about 10sen probably will increase PE a little bit. I only foresee the upside for this share is about 10 to 15 percent as the share price already almost fully value. Just my cents.

Posted by Icon8888 > 2015-04-09 13:49 | Report Abuse

Thanks for your view, it sure helps

Let's wait until next quarter result to find out

Posted by CCCL > 2015-04-09 21:27 | Report Abuse

Strong USD generate less sales. More expansive for developed EU members to import in dollar. They will buy more from less developed EU members countries like Poland.

Posted by matakuda > 2015-04-14 07:17 | Report Abuse

In the Edge Weekly, Edition of 13/4/2015, the matters regarding the dumping things were reported as follows:

1. EU's 5-year regulation against the dumping of China's steel products has on February 2015 expired.

2. This matter is still being reviewed, and during this period (review), the anti-dumping duties imposed on China's steel products remain in force.

3. A decision by the EU will be made known by end of April 2015.

4. Chin Well's ED Tsai Chi Yun was upbeat about such renewal/extension, which will be a boost to the company if this gets materialised.

It was also reported that Chin Well benefits from GST. The ED told the Edge that orders from its threaded rods have surged 6-fold, from 100tonnes to 600 tonnes since the implementation of GST. Reasons given were that industrial users are deterred from sourcing threaded rods from smugglers as they will not be able to claim the tax rebates if they do so.

If I understand the GST correctly, it is not so much about the tax rebates. It is about doing business in a more transparent way. The industrial users who are GST compliance shall report to the government where they have sourced the products from and who they have sold to, meaning, the users(GST compliance) can no longer source from black market.

Good luck guys!

Posted by matakuda > 2015-04-14 07:37 | Report Abuse

Should the EU approve the extension, its peer Tongher is also set to benefit. At present, Tongher's 25% revenue is derived from Germany and Italy.

Posted by kakashit > 2015-04-14 10:23 | Report Abuse

Chinamen for sure will fight for the deregulation, not easy for malaysia players to enjoy longer honey moon period

Posted by matakuda > 2015-04-14 14:47 | Report Abuse

Kakashit, if you are aware, both Chinwel & Tongher are belonged to Taiwan-man. These Taiwan man also originated from China mainland.