Slightly less than 2 weeks ago, I wrote a blog post about Masteel:
http://klse.i3investor.com/blogs/ValueGrowthInvesting/93436.jsp
Since then, the share price has rallied 15% from RM0.55 to RM0.63 currently. Let's look whether the fundamentals are intact or improving:
1) Steel rebar prices is continuing its uptrend, now trading at 2287, a level last reached in July 2015.
2) Ringgit has strengthened more than 10% against the USD this year. This could translate into more than RM7m in profits for Masteel!
3) MRT2 contracts have started to roll out and the demand of steel bars are going to jump.
4) 17.4% duty on imported steel plate to be an earnings catalyst for Masteel as its products become much more competitive compared to imported goods.
Masteel should be worth at least RM0.88 which is 0.4x price-to-book ratio, similar to its past 5-year average where MRT1 was rolled out.
MASTEEL (5098) - (VGI) Commodities are in play! Top pick: Masteel
http://klse.i3investor.com/blogs/ValueGrowthInvesting/94204.jsp
