HG Metal    Last:0.565   -

HG Metal a hidden gem ?

I think this type of high level news only insider will know. By the time market announce, everyone already know. The Malaysia Iskander land is for future development, will not be so soon impact on this counter. After all, they buy in a cheap price.

Look at the post I attached, this counter will gain when approaching the qtr results announcement, which will be soon. Good luck.

 

Agreed the price $0.34 is quite low, however, still waiting for news on the progress of Johor Iskandar project. Anyone has the latest news? Will new PM proceed with the plan if old PM fails to remain?


 

 

福源金属 （HG Metal） 评级：表现优于大市 目标价：61分

（2008-03-29）

　　需求上涨以及美元走软导致热轧钢卷（hot-rolled coil，简称HRC）价格去年增长31％，达到每吨775美元，而福源金属通常都会以低价买入四到五个月的库存，这将扩大公司的利润。

　　福源金属去年50％营业额来自新加坡的建筑行业，该行业预计今明两年将分别有28％和20％的增长。此外，公司另一个重要的领域??新加坡海事和岸外业务今年也预计会有15％增长。

　　联昌国际表示，福源金属都是采用美元购买原材料，营业额的60％至70％是以美元计算，因此美元的走势将直接影响公司的盈利。今年第一季度，美元的疲软为公司带来了350万元的外汇盈利，这一趋势将一直保持到第二季度。

　　尽管钢铁的价格波动较大，但联昌国际仍维持对公司2008年至2010年财年每股盈利的预测，并认为如果钢铁价格保持在目前的价位，公司08财年的业绩将更为出色，并维持对该股每股61分的目标价。

(联昌国际)

 

From Gohdirect 28/03/2008:

We remain positive on HG Metal?s near-term prospects as we believe it will benefit
from a combination of rising steel prices, robust construction and marine and
offshore sectors in Singapore, and a weaker US$. We have kept our FY08-10 EPS
forecasts unchanged for the time being in view of the volatility of steel prices.
However, we believe there could be upside surprises to our FY08 numbers if steel
prices stay at current levels in 2HFY08. We have rolled over our target P/E from
CY08 to CY09, using 8x instead of 9x to factor in compressions in the market P/E.
However, our target price remains relatively unchanged at S$0.61. Maintain
Outperform, given the potential upside to our numbers from any higher-than expected
ASPs.

 

By CHEW XIANG from Business Times 18 Mar 2008

MAINBOARD-LISTED steel stockist HG Metal yesterday entered into a memorandum of understanding with steel products trader Novo Group, which recently completed a reverse takeover of defunct construction company Neocorp International.

Mr Wee: 'This MOU will add to HG Metal's already expanding list of international steel suppliers. The current demand for steel products remains strong due to increased construction and shipbuilding activities.'

Under the MOU, Novo will supply HG Metal with at least 156,000 tonnes of steel products per year, about 9 per cent of Novo's reported steel supply.

The MOU is not legally binding and is subject to a definitive agreement to be executed within three months, the companies said in a joint statement.

Wee Piew, chief executive officer of HG Metal, said: 'This MOU will add to HG Metal's already expanding list of international steel suppliers. The current demand for steel products remains strong due to increased construction and shipbuilding activities.'

The trading volume for semi-finished and finished steel products is expected to rise 20 per cent to 480 million tonnes this year, from 400 million tonnes in 2006, according to the International Iron and Steel Institute. Steel prices have soared, driven by rising demand, higher prices for iron ore and coking coal and falling stocks.

HG Metal reported a 130.5 per cent increase in net profit to $8.5 million for Q1 2008.

The company said a construction boom and rising steel prices helped boost margins.

Novo Group, incorporated in Hong Kong in 2005, counts HG Metal and Lee Metal, another locally listed steel company, as customers.

Novo's backdoor listing on the Singapore mainboard is being completed and trading is targeted to begin on April 2.

For the first five months of FY2008, it posted a net profit of US$5.7 million on sales of US$211.5 million.

Chairman Dicky Yu said in an interview last week that the company has in place agreements to secure 1.76 million tonnes of steel products a year.

 

Any idea when will we be getting our bouns shares?

Thanks!

 

Yes, this is a long term investment. Its dividends payout are good too.

 

 

Market weakness, even good results does not command a clear direction and confident ! My advice for long term, buy now as still worth holding for this counter. Any comment to add ?

 

0445 GMT [Dow Jones] HG Metal Manufacturing (526.SG) down 28.4% at S$0.315 as stock goes ex bonus, dividend today. Company issuing bonus shares on basis of 1 new share for every 3 held, also paying S$0.01 normal dividend, S$0.0025 special dividend; shares trade without right to both from today. Share price fall looks about fair for adjustment to bonus issue, but release of strong 1Q08 results over midday market break may bring out buyers, see stock pare losses. Company says 1Q08 net profit jumped 130.5% to S$8.5 million, driven by rising steel prices. (KIG)

 Didn't come across this posting till market closed. Will catch this on Monday...

Cheers!

 

Ya, this should be only temporary.

 

By the way, if you take yesterday closing .44 x 0.75(for bonus shares) = .33. Then minus dividend .0125 = .3175. So current price .315 reflects the effect of XA.

 

HG Metal gives bonus shares (1 for 3) and dividend. Today is the Ex date, hence the drop. XA= Ex. All.

 

hi, anyone know about the big drop in this counter today?

erm what does the XA stands for?

 

Anyone know how much will the bouns issue be?

Thanks!

 

Still one of the best bet in this volatile market...

 

Anyone read the last saturday chinese paper ? Well written, buy for this counter TP = S$0.79 !!!

 

Rewards shareholders with 1-for-3 bonus share issue, final dividend of

1 cent and special dividend of 0.25 cent

 

Proposed bonus issues!

 

I invested at average S$0.395 ! Hoping it will go to their high again at around 0.67 in 2005 !!! But not lah.

 

Ya man. Should be near end of tis month cos they announced 2H result last yr on 23rd Nov'06.

You vested?

Me vested hoping the result will be good ... but the price had been pathetically down due to current sub-prime problem. Few weeks back hit 0.53 before ... after that drop back ..... Previous placement of 37m new shares were at 0.52 a pcs

Thus, at 0.45 i went in and took some, hoping that there will be movement as it near to the FY07 result .... and hope there will be dividend payout play ( fundamental play ) .... for tis counter

Last year FY06 dividend was $0.04 ... hope that the dividend is better tis year as the local construction market is still boyant and the 1H07 pre-tax is already so good standing at 9.5mil compared to $5.11mil for 1H06.

But at tis current "moody" market situation, wonder if the price will move despite having good result. So worst case, hope for dividend payout as condolences. ha ha ha ..... So at tis price level, it should be still a good entry point.

Again, above not an inducement to trade. Please verfiy your own data.