150 lot of Onasteel = RM24000 la!!!

Ornasteel Holdings (RM1.51) reported a good set of numbers for the first quarter of 2008 (1Q08). Net profit was up by about 5.7% year-on-year (y-o-y) to RM24 million — and was significantly higher than the RM15 million in 4Q07, where margins were affected by higher costs of production.

Ornasteel has successfully recovered lost ground by raising selling prices for its products. Operating margins in 1Q08 improved to 10.9% from 8.6% in 4Q07 and 9.9% in the previous corresponding quarter.

Higher selling prices and sales mix lift margins
The faster-than-expected margins recovery has allayed some of our fears that the company is unable to pass on higher costs under competitive market environment. To minimise the risks of future pricing mismatch, Ornasteel has adopted a monthly pricing basis instead of the usual quarterly pricing basis. The move will help protect margins from further cost increases.

Additionally, demand for cold rolled coils (CRC) has strengthened in the last quarter. Sales for CRC enjoyed a strong 23% y-o-y growth to RM187.9 million, accounting for some 55% of total sales. This has helped pick up the slack in sales for galvanised steel (GI) and pre-painted galvanised steel (PPGI).

Demand for the building materials appears likely to decline further with the slowdown in property and construction projects.
The shift in sales mix — CRC accounted for about 47% of sales in 2007 — also helped boost overall margins. Margins for CRC are much higher than those for GI and PPGI at roughly 10.4% and 4.7%, respectively in 1Q08.

But cautious on outlook
Despite the improvement in financial results, management remains cautious on the outlook going forward. Prices for iron ore, coking coal and crude oil have continued to climb in the past weeks — in turn raising costs for hot rolled coils (HRC), the company’s principal raw material.

Although Ornasteel has managed to pass on the higher costs so far, further selling price increases may eventually dent demand. Indeed, stronger sales in 1Q08 were due primarily to higher selling prices while volume demand growth was more muted.

Leveraging on the CSC brand name
Positively, Ornasteel’s close relationship with its controlling shareholder, China Steel Corp (CSC), gives the company a competitive edge.
Ornasteel sources about 60% of its HRC requirements from CSC, including high-grade interstitial atom-free steel that is difficult to obtain in the open market.

The better quality raw material enables the company to produce higher grade CRC, the bulk of which are currently imported. In fact, about half of our country’s CRC consumption is currently imported, suggesting plenty of room for substitution.

Ornasteel has proposed to change its name to CSC Steel Holdings. The move will enable the company to capitalise on the established brand name of the Taiwan-based steel maker.

Fairly valued with higher-than-market average yields
The stock is trading at about 6.7 times our estimated 2008 earnings, which is fairly consistent with the average valuations for steel stocks. Net tangible assets stood at RM1.88 per share. Given prevailing positive sentiment for the steel sector and Ornasteel’s higher-than-market average yields, its downside appears limited.

Ornasteel’s balance sheet is in good shape. Net cash increased to RM75.4 million at end-1Q08 from RM53.8 million at end-2007. With minimal capital expenditure planned, its cash position should improve further.

Hence, shareholders could expect relatively generous dividend payouts in the current year.

Dividends totalled 12 sen per share in 2007. Assuming a similar payout, dividends should rise to 13 sen per share, which will give investors an attractive net yield of 6.4% at the current price

They did not bring this to themselves. WAR in IRAQ/Afghanistan is A MUST. I TOTALLY SUPPORT in getting rid of terrorism.

Even now, i lose 60k in share market, i still think this WAR should go on!!!

In fact, I would prefer that US goes to war with IRAN and PAKISTAN. Even if it mean losing 80% of my share!! i will still support them.

This world has a disease right now and people in IRAN/PAKISTAN/AFGANISTAN/SYRIA/LEBANON should not be left to spread this disease

sometimes, when you have Gangrene (is a complication of necrosis (i.e., cell death) characterized by the decay of body tissues, which become black and malodorous).

The best solution is NOT to treat the wounded area. But to amputate the area so it won't spread to other part of the body.

bought ORNASTEEL @ 1.5!!!

I bought Hap Seng 3lot@ 2.72!!!!

now of days i got new tactic. Since i subscribe to ICAPITAL newsletter, I will mimic their portfolio and also their recommendation!!!!!!!

alot of research house put a SELL target of RM3 for Maybulk la

Hap Seng group managing director Edward Lee Ming Foo said: “Even excluding the gain from the listing of Hap Seng Plantations and other non-operating items, the group recorded a notable 93% rise in profit after tax.”

It proposed a final dividend of seven sen per share less tax. This, in addition to the interim dividend of 3.5 sen per share less tax paid on Oct 26, 2007, a special interim dividend of 41 sen per share less tax and a tax exempt dividend of five sen paid on Dec 14, 2007, will bring the total dividend for the year to 56.5 sen per share.

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Guys,

does it mean that dividend yield base on today's price is 56.5/275 (RM2.75@todays' price) = 20.5% gross?!?!?!?!

correct calculation?

today i manage to sell NOTION V TECH @0.43 and made a profit!!! hahaha

bought TANJONG @ RM14

TANJONG
Unwarranted valuation; BUY. We see its current weakness in share price, amid the recent political “noise” and unclear windfall tax on IPPs, deems to be unwarranted. It trades at undemanding 8.8x CY09 PER, thus we believe the selling is overdone. We maintain our BUY rating on Tanjong at price target of RM22.60/RNAV share.

guys,

what do u think of BURSA @ 7.65? i think of buying la