KLSE share trading value not following standard financial theory that is P.E ratio is a symptom of unhealthy market which indicates towards gambling market and there is no reason way Bursa regulator can keep silence .
The reason is because they caution that next q will be impacted by mco. Believe directors exercised warrants could have been listed last week or before last ?
Director warrant conversion at 50sen now is timely to raise fresh capital for expansion.
As long as return of these new equity is higher than cash, it is earning accretive instead of dilution.
MCO affect all manufacturers, market will eventually look beyond these temporary setback.
Recovery theme will resume once vaccination rate hit 10% in mid July and moving to second phase, then vaccination rate next 40% in Aug - Sept, moving to next phase
The Confirmation is that vaccination rate will definitely increase toward next 1 - 2 month
I expect just need to wait for 2-3 month. Market alway look forward 3 to 6 month. The reason why hiaptek sold down despite good result is negative impact MCO will affect next Q result. But, after 3 month, MCO will move to next phase and vaccination rate to hit 40%, it will likely in next Q result pose lower profit but comment recovery in following Q due to lifted MCO impact.
Steel company still open for business, but operate below capacity. Hiaptek hardware trading still able to operate 60% capacity.
Steel price is global commodity, most of the global country are aim for recovery post pandemic. Recovery need steel to build infrastructure to spur economy. The real demand of steel is just started in China as it alrdy in post pandemic stage, the next steel demand will come from any other country on top of China, such as US infrastructure project which just pass the budget, European region and Asia will be next demand growth post pandemic
Agreed, political sentiment is a risk, but what could be worse than current political rulling now. The worse is alrdy now, election is ultimately solution to current tussle, to settle current worse politic.
the steel industry worldwide is fraught with gamechanging regulatory interventions which determine the fate of its supply chain, turbo in brief moments but unfortunately more oft hamstrung to be servitude. just ask the steel moguls, a rarer breed these days.
nations imposing curbs, and those yet to, understandably seek to ensure a) adequate domestic supply for own rebuilds, and b) to cap local prices, thereby inflation.
selling out and up to progressive demand markets willing to pay toppish (but cheapish to them) prices contributes to runaway local infrastructure development costs. reining in local price bubbles is crucial in more challenged and indebted economies. this is the chief reason for the curbs.
consequently, producers may have to lower price expectations for restrictions to safeguard sufficiency for internal consumption. resultant sentiments drive the knee-jerk and longer-term equity price action trend.
locally, there is a somewhat unsettling disconnect in the way pure downstream manufacturers are enjoying supranormal profits at the seeming relative expense of the pure upstream producers. this may suggest unchecked submarine supplies circumventing rules originated to ringfence the primaries, much akin to the untenable and unsustainable nature of pure PKO millers on record profits while pure FFB growers are still on the margins.
if both are within the same hybrided entity, which Hiaptek is, to be fair, the outcome could be positive. however, timing the steel cycle can be unexpectedly bumpy because of higher hands and continual megaplant builds, not to mention refiring up nascent backyard capacities when push indeed comes to shove.
I think there are a few big sellers on this stock. Wait for these big sellers to finish selling, otherwise, this stock cannot perform. I also monitor this stock, very sad to see the big selling after excellent Q3 2021 results. Thank you.
stockwin Hiap Teck next QTR result will not be affected by MCO ??
It may affect the revenue ,let us presume the ort profit down by 10%+ ,so at year end the P.E ratio is still very low when share price at 50cts . The most attractive issues inclusive government reintroduced anti dumping duties and China production policy changes.....
Please refer to OTB article for further information.
Not to worry much about the conversion , when Eastern Steel on full swing the profit sharing will increase by another 40 to 50 % for the coming qrt financial result . What we worries is the political stability and EMCO issue !!!!!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
bktay123
190 posts
Posted by bktay123 > 2021-06-30 10:11 | Report Abuse
yes this is bursa....Astino also same pattern despite solid qtr earnings. Patience