A Look At The Intrinsic Value Of Melewar Industrial Group Berhad (KLSE:MELEWAR)
In this article we are going to estimate the intrinsic value of Melewar Industrial Group Berhad ( KLSE:MELEWAR ) by...
Malaysian (KLSE) Steel Industry Analysis
UpdatedMay 26, 2022
DataAggregated Company Financials
Companies21
- 7D-3.8%
- 3M-6.8%
- 1Y-22.6%
- YTD-4.4%
Over the last 7 days, the Steel industry has dropped 3.8%, driven by Mycron Steel Berhad declining 28%. In contrast, Choo Bee Metal Industries Berhad has gained 6.9%. Overall the industry is down 23% in 12 months. Looking forward, earnings are forecast to decline by 10% per year.
Industry Valuation and Performance
Has the Malaysian Steel Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 26 May 2022 | RM5.8b | RM17.1b | RM1.7b | 3.3x |
| Sat, 23 Apr 2022 | RM6.5b | RM16.9b | RM1.7b | 3.7x |
| Mon, 21 Mar 2022 | RM5.9b | RM17.0b | RM1.7b | 3.6x |
| Wed, 16 Feb 2022 | RM6.2b | RM15.9b | RM1.3b | 5.2x |
| Fri, 14 Jan 2022 | RM6.2b | RM15.9b | RM1.3b | 5.2x |
| Sun, 12 Dec 2021 | RM5.6b | RM15.7b | RM1.3b | 5.1x |
| Tue, 09 Nov 2021 | RM6.5b | RM16.0b | RM1.0b | 6.5x |
| Thu, 07 Oct 2021 | RM6.5b | RM16.0b | RM1.0b | 6.2x |
| Sat, 04 Sep 2021 | RM7.2b | RM15.7b | RM703.0m | 8.2x |
| Mon, 02 Aug 2021 | RM6.3b | RM15.7b | RM703.0m | 7.5x |
| Thu, 06 May 2021 | RM7.7b | RM14.6b | RM389.2m | 14x |
| Sun, 07 Feb 2021 | RM4.9b | RM13.4b | -RM72,732,616.00 | 12.4x |
| Sat, 31 Oct 2020 | RM2.8b | RM13.4b | -RM523,303,164.00 | 17x |
| Tue, 04 Aug 2020 | RM2.7b | RM13.4b | -RM713,685,164.00 | 17.1x |
| Fri, 08 May 2020 | RM2.7b | RM15.4b | -RM447,648,656.00 | 10.9x |
| Mon, 10 Feb 2020 | RM3.5b | RM16.0b | -RM460,328,087.00 | 14.7x |
| Sun, 03 Nov 2019 | RM3.5b | RM16.5b | -RM408,087,190.00 | 12.2x |
| Wed, 07 Aug 2019 | RM4.0b | RM17.1b | -RM110,166,671.00 | 13.5x |
Median PE Ratio
13.2x
Current Industry PE
- Investors are more pessimistic on the industry, indicating that they anticipate long-term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 3.3x which is lower than its 3-year average PE of 11.6x.
- Given that earnings are expected to decline by 10%, the lower than average PE seems justified.
Past Earnings Growth
- The earnings for companies in the Steel industry have grown 403% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Comparison
How does Malaysian Steel compare with similar industries?
| MY Market | -1.27% | |
| Materials | -0.85% | |
| Metals and Mining | -0.37% | |
| Steel | -3.81% | |
| Aluminum | 0.27% | |
| Copper | 0% | |
| Gold | 0% | |
| Precious Metals and Minerals | 0% | |
| Silver | 0% | |
| Diversified Metals and Mining | -4.43% | |
Industry PEThere is insufficient data on the sub-industries of this industry.
Forecasted GrowthThere is insufficient data on the sub-industries of this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CHOOBEE Choo Bee Metal Industries Berhad | RM2.31 | 5.5% +RM15.7m | 8.5% | PS3.2x | |
| PANTECH Pantech Group Holdings Berhad | RM0.67 | 1.5% +RM8.2m | 33.0% | PS7.6x | |
| SMI South Malaysia Industries Berhad | RM0.40 | 8.1% +RM6.3m | 81.8% | PS1.7x | |
| MESTRON Mestron Holdings Berhad | RM0.33 | 1.6% +RM4.7m | -18.8% | PS94.2x | |
| LYSAGHT Lysaght Galvanized Steel Berhad | RM1.84 | 2.2% +RM1.7m | -16.0% | PS21.4x |
