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Sunday, October 28, 2007

Ornasteel vs Masteel?

Ornasteel previous 4 Quarter total earning : 24.5 sen, at current price RM1.61 PE = 6.6

Dividend for the previous four quarter - 20 sen, dividend yield = 12.4%

Masteel previous 4 Quarter total earning : 30.75sen, at current price RM1.55 PE = 5

Dividend for the previous four quarter : 2.1 sen, dividend yield = 1.35%

The reason why Ornasteel is able to distribute more dividend is because they have lots of cash in hand and less debt if compare to Masteel. That's make masteel a lower PE when compare to Ornasteel.

But why steel counter at China or India has been favoured by their investor but not Malaysia one? Such a low PE, are they undervalue? Soon they going release their latest quarter report, Let's see is there any rerating of the steel sector.

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