PRESTAR (9873) - PRESTAR, Will Next Quarter a Better One ??
PRESTAR RESOURCES BERHAD (PRB), was incorporated under Malaysian Companies Act 1965 on 12 July 1984 under the name of Prestar Industries Sdn Bhd as a private company. It was subsequently converted into a Public Limited Company on 27 June 1994 and was listed on the Second Board of BURSA Malaysia on 20 September 1995. On 1 October 2003, PRB was successfully transferred its listing status to the Main Board of Bursa Malaysia.
http://www.prestar.com.my/aboutPRESTAR/companyBackground.asp
Prestar's Biz mainly from 3 segments:
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Prestar is a family business which mainly in steel and other manaufacturing engineering business.
Since listed, Prestar is always making profit except one year making loss which is back to yeat 1998.
When we zoom in to the quarter result, we can discover that the recent 2 quarter profit for Prestar is the highest since Q2 2014 (5 Quarter ago). However, we may see the trend that decrease in revenue, so why profit will increase since drop in revenue??
In the explaination notes from the last quarter report, we can see that the factor affect company performance is currency and steel price.
I am not so sure whether i am make the correct steel price reference, as i found out that Prestar did trading of Steel Coil and the Steel Coil is generally raise in price compare to 1st quarter of the year. If the reference used is correct one, Prestar shall be gaining better margin due to the raise of the steel coil price as the significant raise is only start after April 2016.
Under the prospect provided in Q1 2016 Quarter report, the company is very caution with the steel market condition even say the steel price start to recover a bit toward end of March 2016. By the steel price fly in Q2 2016 which may beyond company expectation. the profit margin shall able to improve for Q2 compare to Q1.
Whether the company management is confident with their own company performance or not, I think it can be analyse by the way that whether the company management willing to buy more on their owm share or not. When we look at the Bursa annoucement make in change of shareholder this year, I found out that the company management a.k.a Toh's family had keep accumulating Prestar in open market through it family own Sdn Bhd.
Toh's family accumulating the share since early of the year and is actively accumulating the share toward end of June as the Q2 financial shall be closing in end of June 2016. Perhaps, company management team had some hint to us that the coming business performance is not that bad so that management also show confident by the way of role model which buying the share themself。 The highest price they buy is RM0.603 which is even higher than the closing price by Prestar on Friday. Thus, if take the major share holder buying price as a reference, buying someway below or around RM0.60 maybe will be a good buy for growth the company together with the company & Toh's family.
Let's also have a look on technical chart of Prestar:
At the point "1" in the chart, It show that the Breakout of the share price above the downtrend line which is form a good buy signal for those active investor. Passive investor may wait the share price to break out the recent high of RM0.625 for a better up trend confirmation.
At the point "2" in the chart, Share price is adjust downward back to uptrendline which shall form a support around the uptrend line area. For confirmation, monitor if the price subsequently able to support above the uptrendline level , if yes, means the share price able to find the support on the uptrend line. It is also maybe a good top up position or begin a new position for those yet to get in by the strategy buy at support.
From the chart also show that the volume of the share only start to be active start from May 2016 which may be a indicator that the Makers had start enter into the share and may get ready to make a move for the share price.
IF PRESTAR able to make a better Quarter Result which will be release on end of August, It may be the push up factor to move the share price further to the North.
Any how, PRESTAR will make a dividend payment of 2 Sen per share which will be Ex on 27th July (Wed).
PRESTAR (9873) - PRESTAR, Will Next Quarter a Better One ??
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