Masteel is the smallest integrated steel bar manufcturer listed on the Main Market. Today, Masteel operates a significanly bigger and modern rolling mill (annual capacity: 350,000 mt p.a.) as well as a billet plant (annual capacity: 450,000 mt p.a.). The group produces steel bars (high tensile round and deformed bars) and billets (mild steel and canadium alloy) mainly for the construction and infrastructure-related industries.
Last quarter, 31/3/2010 reported a earning 6.4 million with EPS 3.26, which gives PE 7 (91/13.04).
The coming quarter result is expected to be improved as the economy of Malaysia start to improve.
Due to its cyclic natural of this stock and commodity stock, the safety margin must be very high. So with the high share price 91 cents now, even with improving earning in next quarter, its price still consider high, unless there is a jump of the earning to double up, which can give PE 3.5
As a result, i will not touch this stock yet, unless the share price is trading at very attractive price.
Remarks: the next quarter is predicted to annouce at 25/8/2010
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