ASTINO (7162) - Astino Berhad - Blue Ocean Steel Player

Astino Berhad (Astino - 7162) could be known as just another steel player that had major presence in the northern region of the Peninsula Malaysia. Unlike other steel maker that focused on various steel bars, rods and pipes, Astino offer a  a wider range of steel products such as netting system, scaffolding, sunroof, spandec, bendec and ceiling panel.

While steel business in the northern region of the Peninsula continue to be competitive due to lack of demand in the public infrastructure development as well as competitive imports, it is imperative for steel player to evolve into a different steel industry player by offering niche market solutions through creating new building material as well as providing EPC solution as well.  This is what Astino had been doing, which is the core reason why Astino stand out among other steel player in the region. For Astino, being the EPC (Engineering, Procurement and Construction) player in the Agro House is the way going forward to see the company striving through different stages of market.

Defining Agro House with Astino

What is show special in this Agro House ? Let's have a short clip to have a better understanding on Agro House solution from Astino.

Here is a quick summary on Astino Agro House

Astino will continue to penetrate into new market in South East Asia. Growing market such as Vietnam, Indonesia and Cambodia are rising market with full of potential. The Agro House command a good profit margin for Astino. Further streamlining of process could potentially see gross margin at 20%.


Astino fundamental is improving as of lately, with 1 bonus issue in the late 2014 as well as consistent dividend payment for the past 2 years is one of the best proof to be seen by investor. Despite the challenging environment that is faced by various steel player, Astino continue to grow with product and service differentiation.

Despite a reduction in revenue, profit margin increased, and Astino 3 rolling quarter EPS is standing at 8 cents, back with a NTA of RM 1.08. Factoring future growth, dividend and the potential in Agro House, it is deemed fair to annualized Astino FYE 2016 EPS at 11 cents trading at a PER x 12, which could bring up a valuation of RM 1.32

With Astino just started to break away from a down trending range, Astino is showing the start of a technical uptrend.

At the current price of RM 0.71, Astino still have a appreciation space of 90% assuming fully valued at RM 1.32 based on PER x 12 on EPS 11 cents for FYE 2016.


Despite the current lack of huge infrastructure development in the northern region of Peninsula Malaysia, on going private development in Penang, undersea tunnel, as well as more highway construction will continue provide better prospect towards the steel industry in a whole in 2017 and 2018.

At the current price of RM 0.71, Astino is still very attractive.

Bone's Short term TP : RM 1.00

ASTINO (7162) - Astino Berhad - Blue Ocean Steel Player