Posted by Edwardljhoo > 2017-07-26 13:48 | Report Abuse

KUALA LUMPUR: Maybank Investment Bank Research expects Ann Joo Resources to report better earnings in the second half of 2017 after a weaker second quarter due to seasonally softer demand and higher raw material inventory costs.

To recap, Maybank Research expects Ann Joo to report substantially weaker net profit for 2Q17 (1Q17: RM74mil) given the:
(i) softer industry’s demand for building materials as construction activity slowed during the Hari Raya fasting month and festive season;
(ii) lower industry’s ASPs with billets and bars ASPs down 8% on-quarter in 2Q17; and (iii) higher raw material inventory costs, which were procured in 1Q17, used in 2Q17 production.
Based on our channel checks, steel bar ASP has risen rapidly to RM2,200 a tonne currently (+14% in a month) as construction activities gained traction and demand for long steel products improved.
“We maintain our earnings forecasts which have factored in our expectation of a weaker 2Q17 and better earnings in 2H17.

“We see stronger demand for building materials in 2H17-2018, underpinned by mega infrastructure projects (KVMRT 2, SUKE, KVLRT 3 and ECRL).

“We project Ann Joo to chart a record high net profit in FY17 (+26% on-year) but earnings growth to be tepid in FY18 (+2%) due to its capacity constraint (plant utilisation: 85-90%),” it said.

Posted by Edwardljhoo > 2017-07-26 13:50 | Report Abuse

Ann Joo have advantage over SSteel but overall the situation is the same for both plant.

Posted by CanCan168 > 2017-07-26 13:53 | Report Abuse

Edward...In short...can keep ann joo shares long term?

Posted by Warn3r > 2017-07-26 14:02 | Report Abuse

Ann Joo may have an advantage in terms of flexibility in raw material. This means the company's margin has been higher than Ssteel.

While this is preferred from an operating risk / absolute profit stability perspective, this also means that the increase in margin will not be as drastic as Ssteel. A simple example is comparing an increase from 10% to 15 %, to another scenario where margin increased from 5% to 10%.

I am hopeful that ssteel will turn out to have much more upward potential in the coming 2 years.

Posted by leoting > 2017-07-26 14:09 | Report Abuse

For 2016, Ssteel did not have enough raw materials. The situation change for 2017 after Ssteel built up its raw material, steel scrap. Steel industry is MASS PRODUCTION, the output going up will bring down the operating cost. Therefore, Ssteel will have better margin for 2017.

Posted by Edwardljhoo > 2017-07-26 14:28 | Report Abuse

CanCan168, to be in fact can keep both company shares

Posted by Edwardljhoo > 2017-07-26 14:29 | Report Abuse

Leo, U R Right on the scraps and the margin for SSteel

Posted by cth91 > 2017-07-26 14:48 | Report Abuse

Thanks Edward for your sharing!
Hopefully they can pick up the momentum again soon....stuck in Annjoo for awhile...

Posted by Warn3r > 2017-07-27 08:55 | Report Abuse

Based on what I gathered from what leoting and Edward shared on both AnnJoo and Ssteel forum, it seems that ssteel might be doing okay for Q2 2017 but annjoo might fair a bit worse off compare to their Q1 respectively.

Posted by Edwardljhoo > 2017-07-27 12:53 | Report Abuse

Southern Pricing : (Afternoon) Up RM20/MT
Y16-32=Rm2260
Y10,12,Y40 &R10 =RM2430
R68,12,16,20&25=Rm2460

Posted by Edwardljhoo > 2017-07-27 17:27 | Report Abuse

There is a market shortage of rebar from now onwards, therefore ASP will shoot up to all time high where profit margin will increase sharply for the next 2 months as Masteel, Amsteel & Annjoo have restricted volume for traders to buy certain amount of tonnage.

Posted by leoting > 2017-07-27 19:50 | Report Abuse

In order words, Ssteel have enough stocks while Masteel, Amsteel & Annjoo restricted volume.

Posted by cl1122 > 2017-07-27 21:05 | Report Abuse

Ssteel break 1.7 will initiate technical buy. It's up for 3 days tomorrow is very crucial

Posted by ming > 2017-07-27 21:30 | Report Abuse

Annjoo so much inventory also cleared?

Posted by solaris80 > 2017-07-27 21:44 | Report Abuse

ming, your question is sensitive.

Posted by Sorimachi > 2017-07-27 22:42 | Report Abuse

y sensitive, solaris?

Posted by ming > 2017-07-28 00:19 | Report Abuse

I wonder too

Posted by leoting > 2017-07-28 08:46 | Report Abuse

https://leoting81.blogspot.my/2017/07/july-2017.html

Posted by Edwardljhoo > 2017-07-28 08:57 | Report Abuse

Southern Pricing : (Morning) Up RM20/MT
Y16-32=Rm2280
Y10,12,Y40 &R10 =RM2450
R68,12,16,20&25=Rm2480

This show that market is shortage of rebar that steel mill is in fully control of the pricing for the next 2 and 1/2 years

Posted by godhand > 2017-07-28 09:03 | Report Abuse

@leoting ur blogs all in chinese ,--,

Posted by Edwardljhoo > 2017-07-28 09:07 | Report Abuse

Leo, AJ also have stock but they started up as hardware, to stockist then steel millers. Therefore stockist mentality is still there , waiting for the right price to sell as when market is completely exhausted then only strikes. This happened last year September to December when market is completely exhausted then all hell break loose on this early January 2017......

Posted by Edwardljhoo > 2017-07-28 09:58 | Report Abuse

Ming, ur question is answer as above mentioned, inventory there is but pricing is the key factor

Posted by redwin > 2017-07-28 11:07 | Report Abuse

hi mind to share the source to check the rebar price?

Posted by leoting > 2017-07-28 11:13 | Report Abuse

Southern Steel Pricing got Morning/Afternoon session while Annjoo is normally daily basic or from time to time during updating.

Posted by redwin > 2017-07-28 11:21 | Report Abuse

leoting, any website to check?

Posted by leoting > 2017-07-28 11:30 | Report Abuse

Chine rebar price can get from Website. Malaysia rebar selling price is from millers.

Posted by Edwardljhoo > 2017-07-28 11:57 | Report Abuse

Redwin, as said by Leo on the pricing

Posted by redwin > 2017-07-28 14:13 | Report Abuse

Thanks for your info.

Posted by cl1122 > 2017-07-28 15:21 | Report Abuse

Retrace now.. next week hope can break 1.70

Posted by godhand > 2017-07-28 16:34 | Report Abuse

what is the difference between inventories and inventories recognised as cost of sales.

in the report inventory = 518 637 000
inventory recognized as cost as sales = 2 253 955 000

Posted by 明天会更好 > 2017-07-28 17:20 | Report Abuse

既然市场缺货，那就意味着生产跟不上需求，我可以这么说吗？

生产跟不上需求，那就意味着生意好到做不及，那代表什么呢？嘿嘿

Posted by nicky11 > 2017-07-28 17:56 | Report Abuse

This coming QR will be Q4 for SSteel financial year. Let's see whenever got any surprise to polish their annual report or not.

Posted by MrPauper > 2017-07-28 22:29 | Report Abuse

Inventories may include cost of finished goods that are not sold yet while inventories recognised as cost of sales refer to cost of finished goods that have been sold to customers

Posted by Stock Kingdom > 2017-07-28 22:58 | Report Abuse

Thank you very much!!!

Good discussions & great sharing by many good members mostly at all steel forums, lots of good things & I may not agree to some points but I choose to keep it myself to see how it turns out.

Reason why I keep it to myself is because my points may not valid too.

Posted by leoting > 2017-07-29 21:06 | Report Abuse

Steel Bar Price Update

Please be informed that
Effective 17/7/2017;
RM 2160/mt - Y16 to Y32
RM 2310/mt - Y10, Y12, Y40 & R10
RM 2360/mt - R6, R8

Please be informed that Effecrive 18.07.17
RM 2180/mt - Y16 to Y32
RM 2230/mt - Y10,Y12,Y40 & R10
RM 2380/mt - R6,R8

Please be informed that
Effective 19/7/2017;
RM 2200/mt - Y16 to Y32
RM 2350/mt - Y10, Y12, Y40 & R10
RM 2400/mt - R6, R8

Please be informed that
Effective 20/7/2017;
RM 2220/mt - Y16 to Y32
RM 2370/mt - Y10, Y12, Y40 & R10
RM 2420/mt - R6, R8

[21/07 10:36] Phan/chrb: Please be informed that
Effective 21/7/2017;
RM 2260/mt - Y16 to Y32
RM 2410/mt - Y10, Y12, Y40 & R10
RM 2460/mt - R6, R8

[24/07 09:05] Phan/chrb: Please be informed that
Effective 24/7/2017;
RM 2280/mt - Y16 to Y32
RM 2430/mt - Y10, Y12, Y40 & R10
RM 2480/mt - R6, R8

[25/07 09:25] Phan/chrb: Please be informed that
Effective 25/7/2017;
RM 2300/mt - Y16 to Y32
RM 2450/mt - Y10, Y12, Y40 & R10
RM 2500/mt - R6, R8

[26/07 08:20] Phan/chrb: Please be informed bar price up effective date 26/07 Wednesday.
RM 2320 - Y16 to Y32
RM 2470 - Y10, Y12, Y40 & R10
RM 2520 - R6,R8,R12,R16
R12 no stock.

[27/07 09:13] Phan/chrb: Please be informed bar price up effective date 27/07 Thursday.
RM 2340- Y16 to Y32
RM 2490- Y10, Y12, Y40 & R10
RM 2540- R6,R8,R12,R16
R12 no stock.

[28/07 08:37] Phan/chrb: Please be informed bar price up effective date 28/07 Thursday.
RM 2360- Y16 to Y32
RM 2510- Y10, Y12, Y40 & R10
RM 2560- R6,R8,R12,R16
R12 no stock.

(Source) : Appreciate our Friend Goh CH

Posted by cl1122 > 2017-07-30 09:32 | Report Abuse

The price hike will take an impact in next quarter ? Next quarter is for April may and June o. But the price hike are just happening now. Can anyone clarify ?

Posted by zefftan > 2017-07-30 10:22 | Report Abuse

Cl1122, Try to foresee longer period of time , Q2 result we all know is a weak season, but what's happening now already give u a clue that Q3 result will boom due to high selling price , hence higher profit margin

Posted by MrPauper > 2017-07-30 10:58 | Report Abuse

Usually longer term investors start buying slowly about 3 - 6 months before they anticipate the rest realise what is happening

Posted by MrPauper > 2017-07-30 10:59 | Report Abuse

Perhaps same as kyy bought hrc since 3 - 6 months back?

Posted by MrPauper > 2017-07-30 11:00 | Report Abuse

Short term surge play perhaps more suitable for punters or speculative play?

Posted by leoting > 2017-07-30 12:15 | Report Abuse

A next move and high dividend payment waiting ahead, if you realise this situation, it is happened 10 years ago.

Posted by MrPauper > 2017-07-30 12:22 | Report Abuse

Yes, gonna enjoy the ride for at least the next 12 months

Posted by cl1122 > 2017-07-31 08:37 | Report Abuse

Zefftan, I stated so because I read about some members were anticipating about this upcoming QR. I just want to make sure they knew about this

Posted by Edwardljhoo > 2017-07-31 08:58 | Report Abuse

Good Morning Leo, thanks for sharing CHRB selling prices as they are traders therefore their price is higher than steel mills.

Posted by Edwardljhoo > 2017-07-31 09:06 | Report Abuse

Southern Pricing : (Morning) Up RM20/MT
Y16-32=Rm2300
Y10,12,Y40 &R10 =RM2470
R6,8,12,16,20&25=Rm2500 (No Stock)

Posted by nicky11 > 2017-07-31 09:14 | Report Abuse

steel demand so high?Every day price hike RM20...

Posted by leoting > 2017-07-31 09:22 | Report Abuse

If you know the operation of rebar rolling mill, they will prefer to produce common size instead of small/non common size. It is used to save time of setting/roller changing time. Therefore, small size users have no choice, only able to buy common sizes while miller productivity increase significantly.

Posted by yeekarwai 95 > 2017-07-31 11:42 | Report Abuse

look like increase in steel price news do not boost steel counters share price

Posted by vinc3362 > 2017-07-31 11:48 | Report Abuse

Good for us to accumulate.........

Posted by Warn3r > 2017-07-31 11:53 | Report Abuse

Hengyuan is the centre of attention now.

Wait for ssteel AR next month. Even if it's not outstanding, it should bag an annual EPS of no less than 26-27 cents. Hopeful that there'll be a decent dividend too. Price could touch RM 2.00.

It looks like the price here will be stable between 1.65-1.70 for a while.