HG Metal
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HG Metal a hidden gem ?
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Anyone know when is the annual report notice announcement ? Is it end this month ?
HG Metal Awarded
Global Trader Programme Status
?
for 4 years
Enjoys concessionary tax rate on qualified offshore income
?
Target to achieve S$500 million sales target by FY2009
Singapore, 09 October 2007
?The Company?), one of the largest steel stockists in Singapore and Southeast Asia, is pleased to
announce that the Company has been awarded the
by International Enterprise Singapore (?IE Singapore?).
This prestigious status is awarded by the Singapore Government to selected major trading
companies. The award is to recognize the contribution of these companies to the Singapore
economy and their global impact on their respective industries. The status carries with it a
concessionary tax rate on qualified offshore income, and is awarded on basis of the company's
trade turnover, business spending and commitment to the Singapore economy.
? Mainboard-listed HG Metal Manufacturing Limited (?HG Metal? orGlobal Trader Programme status (?GTP?)
? We are honoured and delighted by the GTP status. We share IE Singapore?s vision of
growing and internationalizing the Group?s business operations and together promote
Singapore as an international trading hub. From its humble beginning, HG Metal has
grown to become one of the largest steel stockists in the region. The Group has set a
target to achieve S$500 million in sales by FY2009. With the support from our government,
we believe we are on track to achieve this target.?
Mr Wee Piew, Chief Executive Officer
Note: For those vested!
This counter is waking up.
50% revenue from construction and the award of GTP bodes well for the company.
Cheers!
hi all,
By year end, this counter could go 60cts or more, results and dividend announcement coming out soon in mid oct.
Thanks,
Happy
Hg seems to move slowly again
, imagine it actually drop to 30+++ cents during correction..
I guess herding is a common disease among investors
It is starting to move ! I sure hope it escalate upwards to S$0.5 !!
Yes, I agree, this stock is strong.
Don 't forget about the placement shares at 52 cents all taken few weeks ago........
Not that bad la if you compare to other stocks. This one is still going strong !
so what !! > 20% correction, hopeless..
Directors buy in more to stablise the market and the share only miserable recovere by a bit ! The market is weak !!!
Friday, the share will rebound back to above S$0.5, I hope so !!!
The right issues $$ is fully used, thus not much $$$ left , thus need to placement to get $$$ again !!!
Spotlight on HG Metal Manufcaturing
Steeling itself for another run
At a glance
Last Price (S$) 0.485
YTD (%) +583/
Issued shares (m) 281.51
Market cap (S$ m) 136.53
52-wk range (S$) 0.28 - 0.505
3M avg volume (m) 4.54
2008 P/E (x)* 6.5
P/BV (x) 1.6
*CIMB Estimates
Source: CIMB/CIMB-GK Research, Bloomberg
Description:
used in various industrial and engineering applications, including pipes, mild steel lip
channels, plates, bars, tubes, and I-beams. The company also manufactures customised
flat steel bars and mild steel lip channels commonly used as roofing support in commercial
and industrial buildings.
HG Metal Manufacturing (HG Metal) offers different types of steel products
Immediate outlook:
buy signal from its MACD would likely suggest that the buying momentum is keen. We
believe that this consolidation is over and the stock has potential to rise to test higher
grounds. The stock is a
stock should be able to breach its recent high of S$0.505 to test S$0.56.
The stock has broken out of its consolidation triangle yesterday. TheTechnical Buy at S$0.46-0.485 and place a stop at S$0.45. The
Medium term outlook (2-6 months):
after it broke out above its S$0.45 resistance. It is now resting on the breakout support
level but we believe that the breakout support would hold steady. The indicators are slowly
turning positive again suggesting that the bulls are building up its shareholdings.
Therefore, LT investors ought to accumulate on weakness as the MT upside target is at
S$0.75.
The medium term outlook for HG Metal is positive
Support & resistance
S2 S1 Last Price (S$) R1 R2
0.395 - 0.405 0.455 - 0.47 0.485 0.49 - 0.505 0.56 - 0.57
Source: CIMB/CIMB-GK Research, Bloomberg
This is old news. Got something updated?
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The Straits Times / The Business Times News on HG Metal
HG Metal may start factory in Johor to produce steel products
By Nande Khin
May 14, 2007
The Business Times
STEEL stockist HG Metal may undertake a 'mega project' on its newly acquired land in Johor that would see the company producing steel products which it is now only trading in, said CEO Wee Piew.
This would allow the group to scale down on its inventory in Singapore as it would be able to get the steel products directly from its Johor factory - a mere drive from Singapore, he said in an interview with BT.
Alternatively, it could supply these products for use in the construction of Johor's Iskandar Development Region in which its newly acquired land is located.
This piece of land, bought by HG Metal earlier this year for RM24 million (S$10.7 million), comprises five lots of land with a total land area of 26.18 acres in the Nusajaya Industrial Park in the Iskandar Development Region. The Region itself has been estimated to require an investment of US$105 billion over 20 years.
The scale of such an investment, noted Mr Wee, is much bigger than those of Singapore's integrated resorts combined, and hence the construction activities - and the demand for steel products - would also be much more.
Mr Wee would not name the type of steel products which HG Metal is considering producing. Looking at the products the group has been trading, one likely possibility is steel plates since the sale of this product contributes to about 50 per cent of HG Metal's total sales.
'But the only thing is that such a project would be very big and we would have to think about how to finance it,' said Mr Wee, stressing that this mega project is only one of a few possibilities HG Metal is mulling over with regard to the use of its Johor land.
Another option HG Metal is looking at is to 'go small' and carry out different activities on each of the lots. For example, the group can make steel pipes, which does not require much land, and have warehouses on the other plots of land for its stockist business. 'So it would be like a replication of our Singapore operations,' said Mr Wee.
Steel pipes are, along with steel lip channels, the only products that HG Metal currently manufactures. Its manufacturing operations only contributes to about 6 per cent of its turnover. Its trading (stockist) activities contribute to about 93 per cent of turnover.
The group is carrying out feasibility studies on its Johor land to decide on which plan would be best. 'First, it depends on financial resources and how much we can commit. And second, it depends on what it makes sense for us to do,' said Mr Wee. All this is part of HG Metal's strategy to grow bigger in size. 'We feel that the steel industry itself is changing, it's become that size does matter as can be seen from the the global trend of consolidation in the industry,' Mr Wee said.
'Also, the steel industry is becoming more transparent and competitive, and it's moving towards a more efficient way of selling. We want to move towards a certain size, so that we can attain economies of scale. If you are a bigger player, you can get bigger quantities and more discounts, as well as better rates for transportation - which is an important consideration in this industry because steel is bulky and transportation is an issue.'
However, he could not say what is an ideal size for HG Metal, although he reiterated the group's target is to hit at least $500 million in annual sales by 2009.
The group is already 'moving towards that direction' as can be seen from its recent results, he said.
HG Metal last Friday reported a near 70 per cent increase in first-half earnings to $7.6 million, boosted by higher steel prices and a strong demand for steel products from the shipbuilding and ship repair sector as well as the construction industry.
The group's turnover was up 23.55 per cent to $214 million, fuelled by strong sales from its steel trading segment which accounted for about 93 per cent of revenue. The rest was contributed by HG Metal's manufacturing segment which makes steel pipes and mild steel lip channels. Gross margin improved significantly from 4.2 per cent to 9.4 per cent.
Shareholder funds as at March 31 stood at $77.3 million, compared to $59.4 million as at Sept 30, 2006. This beefing up of its funds is in tandem with the group's expansion plans, said Mr Wee.
The increase in funds was due to the retention of profits, the completion of a rights issue as well as the partial conversion of a convertible loan from OCBC Bank.
To date, OCBC has fully converted the loan of $10 million to 31.17 million new ordinary shares.
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Volume is getting higher each day. Time for it to shoot up soon....
Hearsay that HG Metal is looking for another stockpile area. Can anyone verify this?
If this is true, there must have some confirmed deal for them to pruchase so much stocks on hand.
Start advancing North..... Go Go Go!!!
confirm is a good share....good bonus, good dividend, good rights......worth to invest for long term
I think there is still some downside. I am waiting for all dust to settle before getting in. Have some patient, wud ripe mre gains, I hope.
