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LSTE

Leader Steel Holdings BerhadKLSE:LSTEEL Stock Report

Market Cap

RM86.1m

7D

-4.5%

1Y

137.0%

Updated

23 Sep, 2021

Data

Company Financials
LSTEEL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends2/6

LSTEEL Overview

Leader Steel Holdings Berhad, an investment holding company, manufactures, processes, and trades in steel and metal products, and minerals in Malaysia, China, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Leader Steel Holdings Berhad
Historical stock prices
Current Share PriceRM0.64
52 Week HighRM0.26
52 Week LowRM0.85
Beta1.09
1 Month Change-0.77%
3 Month Change-9.86%
1 Year Change137.04%
3 Year Change77.78%
5 Year Change26.73%
Change since IPO-52.88%

Recent News & Updates

Shareholder Returns

LSTEELMY Metals and MiningMY Market
7D-4.5%0.6%-0.7%
1Y137.0%135.3%6.2%

Return vs Industry: LSTEEL exceeded the MY Metals and Mining industry which returned 127.3% over the past year.

Return vs Market: LSTEEL exceeded the MY Market which returned 6.1% over the past year.

Price Volatility

Is LSTEEL's price volatile compared to industry and market?
LSTEEL volatility
LSTEEL Beta1.09
Industry Beta1.19
Market Beta1

Stable Share Price: LSTEEL is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LSTEEL's weekly volatility has decreased from 12% to 5% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1987169Pak Tanhttps://www.leadersteel.my

Leader Steel Holdings Berhad, an investment holding company, manufactures, processes, and trades in steel and metal products, and minerals in Malaysia, China, and internationally. The company offers hot and cold rolled steel products, including steel pipes and tubes, hollow sections, flat and angle bars, U and C channels, etc.; mild steel cold / hot rectangular and square hollow sections for furniture, non-structural construction, and mechanical applications; mild steel black welded steel pipes used in furniture, and non-structural construction applications; furniture tubes; and steel sheets. It is also involved in trading, processing, and export of minerals primarily in manganese ores; and provision of transportation services.

Leader Steel Holdings Berhad Fundamentals Summary

How do Leader Steel Holdings Berhad's earnings and revenue compare to its market cap?
LSTEEL fundamental statistics
Market CapRM86.10m
Earnings (TTM)RM19.62m
Revenue (TTM)RM225.49m

4.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LSTEEL income statement (TTM)
RevenueRM225.49m
Cost of RevenueRM184.97m
Gross ProfitRM40.52m
ExpensesRM20.90m
EarningsRM19.62m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin17.97%
Net Profit Margin8.70%
Debt/Equity Ratio46.3%

How did LSTEEL perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

10%

Payout Ratio

Valuation

Is Leader Steel Holdings Berhad undervalued compared to its fair value and its price relative to the market?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LSTEEL (MYR0.64) is trading below our estimate of fair value (MYR0.66)

Significantly Below Fair Value: LSTEEL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LSTEEL is good value based on its PE Ratio (4.4x) compared to the MY Metals and Mining industry average (8.9x).

PE vs Market: LSTEEL is good value based on its PE Ratio (4.4x) compared to the MY market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LSTEEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LSTEEL is good value based on its PB Ratio (0.5x) compared to the MY Metals and Mining industry average (0.8x).


Future Growth

How is Leader Steel Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Leader Steel Holdings Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Leader Steel Holdings Berhad performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSTEEL has high quality earnings.

Growing Profit Margin: LSTEEL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LSTEEL's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: LSTEEL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LSTEEL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (237.9%).


Return on Equity

High ROE: LSTEEL's Return on Equity (11.3%) is considered low.


Financial Health

How is Leader Steel Holdings Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: LSTEEL's short term assets (MYR125.2M) exceed its short term liabilities (MYR89.4M).

Long Term Liabilities: LSTEEL's short term assets (MYR125.2M) exceed its long term liabilities (MYR16.7M).


Debt to Equity History and Analysis

Debt Level: LSTEEL's debt to equity ratio (46.3%) is considered high.

Reducing Debt: LSTEEL's debt to equity ratio has reduced from 61.9% to 46.3% over the past 5 years.

Debt Coverage: LSTEEL's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: LSTEEL's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

What is Leader Steel Holdings Berhad current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSTEEL's dividend (2.34%) is higher than the bottom 25% of dividend payers in the MY market (1.55%).

High Dividend: LSTEEL's dividend (2.34%) is low compared to the top 25% of dividend payers in the MY market (4.23%).


Stability and Growth of Payments

Stable Dividend: LSTEEL's dividend payments have been volatile in the past 10 years.

Growing Dividend: LSTEEL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.1%), LSTEEL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.5yrs

Average management tenure


CEO

Pak Tan (59 yo)

16.42yrs

Tenure

RM1,052,070

Compensation

Datin (Mrs.) Pak Say Tan has been Managing Director of Leader Steel Holdings Bhd since April 29, 2005. Datin (Mrs.) Tan has been Executive Director of Leader Steel Holdings Bhd since February 21, 2005 and...


CEO Compensation Analysis

Compensation vs Market: Pak's total compensation ($USD251.00K) is above average for companies of similar size in the MY market ($USD124.87K).

Compensation vs Earnings: Pak's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LSTEEL's management team is seasoned and experienced (9.5 years average tenure).


Board Members

Experienced Board: LSTEEL's board of directors are seasoned and experienced ( 17.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Leader Steel Holdings Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Leader Steel Holdings Berhad
  • Ticker: LSTEEL
  • Exchange: KLSE
  • Founded: 1987
  • Industry: Steel
  • Sector: Materials
  • Market Cap: RM86.101m
  • Shares outstanding: 134.53m
  • Website: https://www.leadersteel.my

Number of Employees


Location

  • Leader Steel Holdings Berhad
  • Wisma Leader Steel
  • Plot 85, Lorong Perusahaan Utama
  • Perai
  • Pulau Pinang
  • 14000
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 15:54
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.