HG Metal
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HG Metal another Gem
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Director selling does not mean share price is going to collapse. There is more than 1 director in the company if I remember correctly.
I think this stock is undervalued....
Director's selling may have caused some nervousness among the investors. I would say he sell at the wrong time while the share is about to "cheong". Heehee, may be he needs money to buy property...anyway should be just a temporary reaction that causes the price to drop
Hi Kopimoni,
erm, this stock is more for mid term, not a speculative stock, so i;m not sure if your LV bag can be bought with kopi money. hehe
yesterday US market quite bad, more or less will affect SG market today.
for me, i prefer to buy on down days and sell on high days.tend to get better prices
anyway happy trading.
Cheers.
Hi ryantka,
Thks for yr reply. Just vested recently so abit jittery. Hope to make some kopi moni to buy a LV bag before the GSS is over.
Cheers.
Hi Kopimoni,
The said director was holding 17 million shares (more than 17,000 lots) before selling, the 1 million shares he sold was just about 6 or 7% of his holdings.
There could be 2 reasons of the sale,
1. he wants to cash out some money to spend
2. he wants to release more company stocks to the public market flow.
either way, its not a big sell down as his still holding on to nearly 16 mil shares.
If i hold 17 lots of a company, it doesnt make a big difference to me if i sell 2 lots for some cash. So, it should not be a big cause for alarm as we all know that this is a fundamentally strong company with good prospects.
Hi,
I'm noobie here. It was stated in today's ST that chairman of HG Metal has pared down his stake by selling 1.14 mil shares at average of 53.17c.
What is the implication ? Appreciate yr views.
TIA.
Seems undervalued.......
Target price S$0.73.
Slow and steady counter. Slight fallback yesterday but will rise again. Normal. Have patience. very strong counter. Strong fundamentals, strong results.
spurs88. thank you for providing the information.
Volume still looks good eventhough there is a slight drop today. With the strong construction and marine growth, these markets defintely need a lot of steel. It should benefit HG metal if it is able to provide the steel needed.
DJ MARKET TALK: DMG Starts HG Metal At Buy, S$0.73 Target (2007-07-10)
0206 GMT [Dow Jones] STOCK CALL: DMG starts HG Metal (526.SG) at Buy with
S$0.73 target. Says steel stockist likely beneficiary of flood of
construction projects in Singapore, marine-related activities. Expects 57% on year surge in FY07 net profit to S$22 million, which will be highest on record, due to widening profit margin, rising volume of metal traded. Says
shareholder-friendly management likely to reward investors with generous
dividends (payout ratio at 50% in past 2 years). Stock flat at S$0.53.
Is this report by DMG? just released today?
Thank you spurs88 for the good news. In this case, I shall hold longer...
good information, thks
Beneficiary of Rising Steel Prices
Expect strong earnings for FY(Sep)07 and FY(Sep)08 arising from price rises for its
steel stockpiles and increased volume of sales. Likely beneficiary from the
avalanche of construction projects in Singapore and marine related activities.
Shareholder-friendly management likely to reward investors with generous
dividends. BUY with 12-month price target of S$0.73.
Record profit level.
FY(Sep)07 (EPS: 7.7 cents). This will be its highest profit on record since its listing in 2002
and proforma formation in 1999. The record profit is on the back of widening profit margin
and rising volume of metal traded. As a major stockist, HG Metal benefited from price
increases for its steel stockpiles and orders on transhipment.
We expect HG Metal to report a 57% rise in net profit to S$22m in
Outlook for Singapore steel industry is excellent.
booming, fueled by influx of foreign capital and boosted by wealth effect from buoyant equity,
labour markets and enbloc sales. Several large construction projects have been initiated.
Similarly, demand for oil exploration and production has spurred record orders for oil rigs,
supply tug boats and (Floating) Production, Storage and Offloading vessels. These projects
require massive amount of steel.
The Singapore property market is
Attractive dividend yield
30% of net profit, except FY04, when profit was the highest on record. Management has not
promulgated a dividend policy. However, dividend payout ratio was 50% in the past two years.
We expect similar payout in FY07.
. Since its public listing in 2002, HG Metal has paid out more than
Valuation and recommendation.
Our target yield is 5.3% which translates to a target pricing of S$0.73.
We believe that dividend yield of 7.3% is very attractive.
With the positive reporting in the Business Times on Saturday, with such a strong heading "HG Metal in "exciting phase of growth", I believe this should be a very interesting week for HG Metal. All along we all know this company has very strong fundamentals, take good care of shareholders, and now fueled with this news in the Business Times, this counter should be in the limelight.
At present, the warrant is theoretically overpriced the mother. Assuming yhe mother put on 20 cents weight, the warrant may put on anything from 20 cents or less. The time for warrant to expire is 2010 so giving us quite good time. Well, still a risk. Only thing worth considering is its price to mother. 50 lots of warrant is certainly much cheaper than the monther. Risk will be if there is a bonus or rights issue, and also warrant dont attract dividend.
Lets buy the warrants instead.
Extracted from SGX
HG Metal accelerates expansion
plans to ride on Singapore booming
construction industry
?
construction sector
Approximately 50% of 1H FY2007 revenue was derived from
?
revenue driver in 2008/09
Robust demand from construction sector to become major
?
from FY2003 to FY2006
Solid track record of a 32.4% CAGR in Shareholders? Equity
Singapore, 06 July 2007
?The Group?), one of the largest steel stockists in Singapore and Southeast Asia, is expected to
ride on the booming construction industry in Singapore.
Over the past months, HG Metal has announced a number of expansion plans in line with its
projected expansion of business. The Group has already started construction of new warehouses
at its existing warehouse at 30 Jalan Buroh while construction at its new 300,000 sq ft Jurong
Port Road facility is likely to start in Sep or Oct 2007. These new warehouse facilities are
expected to add warehousing capacity of another 50,000 tonnes when fully completed.
The Group is contemplating the acquisition of more facilities to cater to the growing demand for
its products and services.
.
? Mainboard-listed HG Metal Manufacturing Limited (?HG Metal? or
? The Group is in an exciting phase of growth where we are experiencing strong demand
for our products from the booming local construction industry. We received numerous
enquiries for our steel products such as deformed bars and lip channels, which are widely
used in the construction industry. The Singapore construction industry will be a strong
revenue contributor to the Group in 2008/09 with more than S$9 billion Foreign Direct
Investments expected for the two Integrated Resorts (?IR?).?
Mr Wee Piew, Chief Executive Officer
HG Metal has previously announced that the Group has acquired 5 plots of land at Nusajaya
Industrial Park (?NIP?) in Nusajaya, Johor Bahru, Malaysia (?Nusajaya Land?), at a purchase
consideration of RM 23,948,417 (about S$10.5 million). The Group will utilize the Nusajaya Land
area totaling 26.18 acres, for the manufacturing, processing and storage of steel products in three
factories, warehouses and an administration building. Carried out in 3 phases, this will allow the
Group to upgrade operational efficiency, add value to market requirements and adapt to changes
in customer demands, which is consistent with the HG Metal?s plans to provide an increasingly
diverse range of products and services to the steel industry.
The Group has achieved a solid track record in enhancing shareholders? values since its listing in
2002. From FY2003 to FY2006, HG Metal has achieved a Compounded Annual Growth Rate
(?CAGR?) of 32.4% for its Shareholders? Equity from S$24.9 million in FY2003 to S$58 million in
FY2006.
--The End--
0.55 to0.58 ? bullish tran, just wakeup @ 0.47 ! best to enter @ 0.50 but very low changes, i guees ! Happy vest !
