Posted by leoting > 2017-08-29 08:03 | Report Abuse

For your information, whatever purchase price of raw materials in the first half is very low compare to existing market average selling price,asp

Posted by leoting > 2017-08-29 08:04 | Report Abuse

And, i assure you abbd is another new ID with few replies.

Posted by zexon > 2017-08-29 08:18 | Report Abuse

@leo, we all know Rojak Sauce and Belacan Sauce told abbd don't buy so fast.

Posted by edward123 > 2017-08-29 08:53 | Report Abuse

Wow, Leo so agitated today? Good Morning & Happy Huntings for Investors

Posted by notebook > 2017-08-29 09:36 | Report Abuse

sambal sauce very chun chun one.

Posted by leoting > 2017-08-29 09:38 | Report Abuse

@edward123 Good Morning, Edward. Just curious where got so many insiders' hearsay like abbd. Neither management nor audit firm can disclose any details, due to rules and regulation.

Posted by gogogogo > 2017-08-29 09:53 | Report Abuse

Haha abbd new account created just to create panic selling and buy low. Check his comments history

Posted by OOMMGG > 2017-08-29 09:58 | Report Abuse

He has no solid data to back his claim. A typical naysayer?

Posted by edward123 > 2017-08-29 09:59 | Report Abuse

Hi Leo. hearsay is one thing unless you have proof or data to back u up. No one in mgnt or audit will give any disclosure as its conflict of interest.

Posted by OOMMGG > 2017-08-29 10:02 | Report Abuse

Low cost raw material secured in Q2 and used in Q3. What is rebar price in Q3, everyone know about it.

This resulted higher gross profit margin in Q3

Posted by leoting > 2017-08-29 11:13 | Report Abuse

zzz........you win. I better concentrate on my research.

Posted by Albukhary > 2017-08-29 11:14 | Report Abuse

Leoting, I realised that SSTEEL is using Weighted Average method to calculate it stock and cost of good sold.

Normally, there are 3 method available:-

1) FIFO - First in first out
2) LIFO - Last in first out
3) WA - Weighted Average

If SSTEEL is using FIFO, then we all can very sure that Q3 will be very profitable, because Q2 raw material is cheap, and Q3 selling price is high.

But now the fact that SSTEEL is using WA, so the low price material purchase in Q2 will be neutralise with its high price material purchase in Q3, so its average cost might not be as low as our expectation.

For example, by using FIFO, you may estimate its profit is RM100mil. But if using WA, then maybe you should reduce your estimation by 25%-50%, so expected profit should be RM50mil - RM75mil.

The above is just my own finding after studying its QR this morning, welcome everyone with better accounting knowledge come and share your comments.

Posted by OOMMGG > 2017-08-29 11:15 | Report Abuse

Abbd, based on the recorded low raw material cost in Q2, and high rebar price in Q3, the insider sauce you are convinced is not convincing at all.

In investment, I'm trusting based on actual data not hearsay.

Posted by OOMMGG > 2017-08-29 11:20 | Report Abuse

Albukhary, it can be 1 & 3. In Q2 result, it is 1, therefore in Q2 result, l addressed it as used all the high cost material secured in in Q1.

Posted by OOMMGG > 2017-08-29 11:22 | Report Abuse

Higher profit is expected on Q3.

Posted by OOMMGG > 2017-08-29 11:23 | Report Abuse

I suggest all of us do a calculation for past 6 q, then we'll know what happen to gross profit margin for past Q.

Posted by leoting > 2017-08-29 11:23 | Report Abuse

I predict PBT 100milions before, after tax will be PAT 74 millions. Anyhow, if ASP shot to RM2650/MT, higher profit can be expected in Q3.

Posted by lenyan > 2017-08-29 11:25 | Report Abuse

Most chips is around 1.70 and still have paper profit 25%. Most of them not selling because of coming quarter result will be good. Banker still inside and collecting stock from retailer like abcd.
Price will sideway for awhile and will go uptrend again soon or later.
# midterm player can buy first bet liao

Posted by gogogogo > 2017-08-29 11:30 | Report Abuse

This abbd is part of the banker and trying to buy actually

Posted by VenFx > 2017-08-29 11:33 | Report Abuse

Haiyo abdb, pinpointing will not benefit anyone here,
why not relook what has went wrong to your claim ?

i see many sifus here sharing their views genuinely ...
keep on blaming wont benefit anyone here, and we dont need to hear your blaiming neither .

unless, u tot u can blow down ssteel to 1.85 with your air talk ?
come on larrrr .

Posted by OOMMGG > 2017-08-29 11:34 | Report Abuse

Abbd, l explained before. We make a mistake in Q2 as we overlooked the high material cost in Q1, low rebar price in Q2.

Gross profit margin reduced in significantly but unfortunately all eye just focus on recovery of steel industry and its prosperous/ upbeat future.

Posted by abang_misai > 2017-08-29 11:36 | Report Abuse

no choice. He cari makan mah

Posted by OOMMGG > 2017-08-29 11:36 | Report Abuse

Q3 is the reverse of Q2 scenario.

Posted by smallinvestor88 > 2017-08-29 11:38 | Report Abuse

abbd, ssteel result is not terrible poor. it is just below our expectation but it is still profit

btw, if ssteel can closed 1.93 and above in today red sea...it will become a strong support

Posted by OOMMGG > 2017-08-29 11:40 | Report Abuse

Leoting sharing lot of info to us, he did doing a big favour to us.

If we make a mistake in investment, don't blame other. Take urself responsible and find out the reason of mistake, improve it and move forward.

Posted by VenFx > 2017-08-29 11:41 | Report Abuse

Blind spot happen during our case study into individual counter,
But, i'm sure the BIG PICTURE are very encouraging .

Thx Leoting's relentlessly guidance on that .

Posted by joetay > 2017-08-29 11:46 | Report Abuse

maybe time for me to look at it since everyone suddenly turn negative.

early this mth, i m negative and now pending further research, i may turn neutral at the rite price.

Posted by edward123 > 2017-08-29 12:52 | Report Abuse

Southern Pricing : (Morning)Y16-32=Rm2520 Maintain
Y10,12,Y40 &R10 =RM2670
R6,8,12,16,20&25=Rm2720 (No Stock)

Amsteel Pricing : (Morning) Up RM20/Mt
Y16-32=Rm2520
Y10,12,Y40 &R10 =RM2670( do not have sufficient stock, only certain sizes have)
R6,8,12,16,20&25=Rm2720

Posted by bonbon > 2017-08-29 14:51 | Report Abuse

Thanks edward123 for updating the prices

Posted by Warn3r > 2017-08-30 06:15 | Report Abuse

My other counters are doing terribly. Tempted to move all capital to steel counters but That would Mean putting all eggs in one basket. The supporting factor is that this is the only place I am confident about with its Q3 results...

Posted by lenyan > 2017-08-30 14:08 | Report Abuse

Company still making profit la.. next quarter guarantee more profit la. Banker collecting.

Posted by lenyan > 2017-08-30 14:15 | Report Abuse

fundamental is still remain good.
下个季度拉长补这一季的短 = 业绩暴涨 = 股价继续突破上升 钢铁业具有3年的优势

Posted by Albukhary > 2017-08-30 16:02 | Report Abuse

Calling Leoting, urgent!
While we all focus on increase trend of Steel Price, we have omitted the increase trend Coke price.

Look at Huann result, I believe this is not a simply goreng-goreng.
This is similar to last year where steel price start moving, and Lionind start moving from 30sen to now RM1.10.

Maybe we all should go to studying about Coke industry, then come out some detailed analysis during this long holiday.

Posted by yoloisreal > 2017-08-30 16:08 | Report Abuse

I just know we have coke counter in Bursa lol. Huann should be top gainers of the year

Posted by animate101 > 2017-08-30 16:56 | Report Abuse

Electric arc furnace use coke breeze, only blast furnace use metallurgy coke

Posted by Albukhary > 2017-08-30 17:55 | Report Abuse

A world class blast furnace operation demands the highest quality of raw materials, operation, and operators. Coke is the most important raw material fed into the blast furnace in terms of its effect on blast furnace operation and hot metal quality. A high quality coke should be able to support a smooth descent of the blast furnace burden with as little degradation as possible while providing the lowest amount of impurities, highest thermal energy, highest metal reduction, and optimum permeability for the flow of gaseous and molten products. Introduction of high quality coke to a blast furnace will result in lower coke rate, higher productivity and lower hot metal cost.

SOUTHERN STEEL is using Electric Arc or Blast Furnace?

Posted by zefftan > 2017-08-30 18:16 | Report Abuse

SSTEEL is using EAF

Posted by voonyoke > 2017-08-30 18:17 | Report Abuse

SSteel is using EAF electric arc furnace

Posted by leoting > 2017-08-30 18:43 | Report Abuse

@Albukhary I am travelling, not with my desk.

Posted by edward123 > 2017-08-30 22:45 | Report Abuse

Dear All, sorry for late announcement as today busy with wife hospitalization therefore unable to provide in time.

Southern Pricing : (Morning) Up RM20/Mt
Y16-32=Rm2540
Y10,12,Y40 &R10 =RM2690
R6,8,12,16,20&25=Rm2740 (No Stock)

Amsteel Pricing : (Morning) Maintain
Y16-32=Rm2540
Y10,12,Y40 &R10 =RM2690( do not have sufficient stock, only certain sizes have)
R6,8,12,16,20&25=Rm2740

Posted by TrippleZ > 2017-08-30 22:47 | Report Abuse

Thanks for the update.

Posted by zexon > 2017-08-30 23:22 | Report Abuse

Take care brother Edward

Posted by Albukhary > 2017-08-30 23:54 | Report Abuse

@edward, thanks for the update. Hope your wife are okay.

Posted by leoting > 2017-08-31 10:13 | Report Abuse

@edward123 Take care, brother.

Posted by invest_101 > 2017-09-01 10:28 | Report Abuse

@edward, speedy recovery to your wife. Take care of your priority first and making money can wait. Always appreciate your contributions to this thread. Cheers

Posted by VenFx > 2017-09-01 19:39 | Report Abuse

@ed bro,
Take care

Posted by Chean Yeh > 2017-09-01 23:44 | Report Abuse

hope she will get well soon

Posted by value88 > 2017-09-02 10:10 | Report Abuse

@Leothing, can I know what do you think about the graphite electrode shortage problem ? How much that would adversely impact SSteel's production output and costs ?

Posted by kevin008 > 2017-09-02 21:04 | Report Abuse

China rebar future hit rmb4149..near 5 year new high

Posted by Albukhary > 2017-09-02 23:33 | Report Abuse

Give SSTEEL some time (1-2 week), it will go back to RM2.20 level.
Then, if steel price continue to stay high by end of September, then SSTEEL will continue climb to RM2.50 at least.