1. Tashin posted strong Q3FY20 results as their net profit was up by 1134% on QOQ basis and 183% YOY. Revenue for the quarter was the highest ever since their IPO in 2019.
2. Malaysia has started with some of the latest mega projects like ECRL & RTS which definitely requires steel therefore the demand for steel will increase.
3. Iron price has surged up almost up 38 per cent, according to data from S&P Global Platts and set to average $100 a tonne for the first time since 2013.
As we can see from the quarterly performance of Tashin we can see that Tashin has definitely up it’s ante as their result soared up quite significantly.
With the major mega projects now already kick start steel will see it’s demand to increase therefore local steel players will definitely benefit from this.
Iron ore price has being going up and Companies like ChooBee & CSCSteel has shown quite good result. This is probably a step moving ahead in tandem with the demand of iron.
Reason 1: It is in the right industry which is booming now, STEEL INDUSTRY
What is TASHIN doing ? It is a steel company. Check out its website https://tashin.com.my .
It is involved in the steel related sector encompassing both manufacturing and trading activities. Details of its operation are:
(i) Processing (ie, slitting and shearing) of steel coils into slit coils and steel sheets; (ii) Manufacturing of steel products comprising, steel pipes, flat bars, square bars, expanded metals, checkered plates and C Purlins; and (iii) Trading of steel products including steel plates, steel pipes, round bars, angle bars and wire mesh.
Reason 2: Latest December quarter results is a record high (+180% QoQ) (+450% YoY)
As shown below, TASHIN made RM6.5m net profit or 1.85 sen EPS in December-2020 quarter. The Company benefited from rise in the steel prices. As steel price is still increasing in January, February and March we can expect another new record in 1Q result.
Reason 3: It is worth 75 sen (45% Upside !!!)
1.85 sen EPS in 4Q20 means FY21 easily can make 1.85 * 4 = 7.4 sen EPS round up to 7.5 sen EPS. This is not aggressive because steel price still increasing trend.
ORNA is underrated 9.04 sen EPS in 4Q20 means FY21 easily can make 9.04 * 4 = 36.16 sen EPS round up to 36.16 sen EPS. This is not aggressive because PAPER PULP price still increasing trend.
6 x PE on FY21 EPS of 36.16 sen = 6 * 36.16 = RM 2.17
The current stock price is only about 10% higher than the IPO price and given the recent rise in the global steel price and also Tashin is expanding into another new steel factory, there are good prospect to buy and keep this stock.
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....
Knm_bottomed
1,122 posts
Posted by Knm_bottomed > 2020-08-08 20:22 | Report Abuse
Buy liao