STOCK: CURRENT PRICE: SECTOR: INDUSTRIAL PRODUCTS & SERVICES DATE:

CHOOBEE 1.520 SUB-SECTOR: METALS 2/4/2020

BUSINESS MODEL MANAGEMENT
 INSTITUTIONAL / OWNERSHIP MAGIC NUMBERS (5 + 1)
ROE
EPS EPS 8.1 NTA PE (<10) DIV (>7%)
(>15)
+VE OV UV OK NOT OK NIL

CURENT EARNING (%) ANNUAL EARNING (Million)

LEADER & LAGGARD MARKET DIRECTION

HELIVIEW MONTHLY

Debt to
SUPPLY & DEMAND D Equity
0.06

Asset
0.63
Turnover
A Current
21.50
Ratio
HELIVIEW DAILY

C Cash Ratio 3.44

Profit
GENG / MIROR Margin
5.52%

E
ROE 3.65%
 NEWS

Demand recovery improves steel company performance

Orientaldaily Fri, Nov 20, 2020 09:15pm-4 months ago

(Kuala Lumpur, 20th) The recovery of global steel demand has driven the performance of the steel industry. The three
steel companies that announced their results on Friday showed a certain degree of improvement.

Among them, Sinosteel Malaysia (CSCSTEL, 5094, main board industrial stocks) net profit for the third quarter of fiscal
year 2020 (as of September 30) increased by 20.82% year-on-year to 12.72 million ringgit, higher than the 10.53 million
ringgit in the same period of the previous financial year ; However, due to the decrease in cold rolled steel coil (CRC)
sales and the decline in the average selling price of products, turnover shrank by 13.24% year-on-year to RM306.84
million, down from RM35.67 million in the same period last fiscal year.

The company said that the decline in business was mainly due to the fall in the cost of raw materials, which led to a
corresponding drop in sales prices. However, the company focuses on high-margin products, so profitability has grown.

The company’s accumulated net profit for the first nine months still fell 43.85% year-on-year, with a net profit of 15.57
million ringgit, which was lower than the 27.74 million ringgit in the same period of the previous financial year;
cumulative turnover shrank by 30.73% year-on-year to 712.51 million ringgit, which was lower than It was RM1,028.62
million in the same period of the previous financial year.

Jumei loses profit

Jumei Iron and Steel Plant (CHOOBEE, 5797, main board industrial stock) turned a loss to profit in the third quarter of
fiscal year 2020 (as of September 30), with a net profit of RM3.98 million and a net loss of RM1.69 million in the same
period last year; The year-on-year decline was 2.98% to RM109.96 million, compared with RM113.34 million in the same
period last year.

Cumulative net profit for the first nine months soared 264 times to 7.96 million ringgits, compared to 30,000 ringgits in
the same period last year; turnover fell 32% to 231.4 million ringgits, compared to 340.33 million ringgits in the same
period last year.

Ma Steel Works (MASTEEL, 5098, main board industrial stocks) made a net profit of RM3.77 million in the third quarter
of fiscal year 2020 (as of September 30), a sharp drop of 95.66% year-on-year, mainly due to the revaluation of the land
value in the same period last year. It recorded a one-time profit of 76.65 million ringgits, and the production cost
increased by 63.70% year-on-year. At the same time, there was a deferred tax.

However, the company’s pre-tax profit tripled to RM6.04 million, and its turnover also surged 54.31% year-on-year to
RM417.49 million.

In addition, the Malaysian Iron and Steel Plant had a net loss of RM 22.94 million in the first nine months of the current
financial year, and a net profit of RM 67.66 million in the same period last year; turnover increased by 19.55 percent
year-on-year to RM 1.0107.76 million.

RAW MATERIAL COSTS ROSE ‧ JUMEI STEEL PLANT'S NET PROFIT FELL 78% IN THE SECOND
QUARTER
Sinchew Sat, Aug 24, 2019 02:03 pm

(Kuala Lumpur, 23rd) The slump in average selling prices, coupled with high raw material costs, has eroded profits,
resulting in a sharp decline in net profit for the second quarter of June 30, 2019 at Jumei Steel Plant (CHOOBEE, 5797,
Main Board Industrial Products Services Group) 78.39% to RM 22.14 million, far lower than the previous period of RM
10.24 billion.

In the first half of the year, net profit plummeted 91.66% to RM1.723 billion, compared with RM20.657,000 in the prior
period.
In the second quarter, the turnover decreased by 13.88% year-on-year to RM105.574 billion due to a decrease in sales
tonnage, resulting in a decrease of 4.3% in the six-month cumulative turnover to RM226.97 million.

The company issued a statement saying that the price of iron ore sand soared to a five-year high, pushing international
steel prices higher in July, but the lack of domestic demand for significant construction and industrial activities has
suppressed steel demand and prices.

"In spite of this, we are still optimistic about infrastructure projects such as the East Coast Railway Plan (ECRL), Malaysia
City, and public transportation infrastructure projects, and steel demand will recover in the second half of the year.
Therefore, the Group will continue to focus on improving product quality, And to ensure procurement cost efficiency and
inventory management strategies to strengthen product delivery efficiency and deepen overseas market performance."

3 INFRASTRUCTURE BOOSTS STEEL DEMAND AND GATHERS BEAUTY TO SING GOOD PROFIT
PROSPECTS

Nanyang Sat, Jun 22, 2019 09:39pm-12 months ago

Sun Qinghai (middle) is optimistic about the infrastructure project that will be launched soon and will contribute to the
company's profit; Chen Hanlong (left) and Sun Qingwen accompanied the press conference.

(Ipoh, June 21) Jumei (CHOOBEE, 5797, main board industrial stocks) pointed out that although China is also affected by
the Sino-US trade war, the three large-scale development projects to be launched by the government are expected to
boost domestic steel demand and contribute to profitability .

These three large-scale development projects include the East Coast Railway (ECRL), MRT Third Route (LRT 3) and
Malaysia City.

Chief Executive Officer Sun Qinghai expects that these large-scale infrastructure projects may start construction in the
second quarter of this year, which will help boost steel demand and contribute to the company's profitability.

Sun Qingwen is deputy chief executive

"The performance of the company still depends on the progress of these three major infrastructure projects."

He spoke today after the annual general meeting of shareholders; attendees included Deputy Chief Executive Officer Sun
Qingwen and Chief Financial Officer Chen Hanlong.

Jumei reported to the Exchange this evening that due to job adjustments, the 55-year-old Sun Qingwen was transferred
from an executive director to deputy chief executive officer, effective immediately.

Sun Qinghai pointed out that the prolonged burning of the Sino-US trade war impacted the global economy, and my
country's economy was also affected.

"However, Southeast Asian countries can also benefit. Some foreign capital will transfer production lines to ASEAN,
especially my country is the first country for foreign capital to set up factories, which will bring greater opportunities for
the building materials industry."

He said that my country's political stability and good infrastructure equipment are advantages for attracting foreign
investment.

"The company has drawn up a development plan for the next five years, including setting up a factory and warehouse in
Jiapu, Selangor for RM 25 million, and expanding its production line to meet steel demand in the Klang Valley."