[10 Key reasons on why you should relook at MSC]
1. Even without the participation of institutional investors, MSC has
surged 230% with minimal selling pressure. When big insti funds starting
to notice MSC, potential gains might further be unleashed.
2. Straits Trading, the parent company of MSC (with 54% shareholdings in MSC) has gained more than 80% in less than 3 months.
3. MSC is also dual listed in Singapore. Current share price surged to 71sen. Arbitrage can be applied here.
4. Production curb and output cuts by Top 1 and Top 2 refined tin
producers in the world (PT Timah and Yunnan Tin) back in 2019 and first
half of 2020 has successfully balanced out the oversupply situation in
2020. Smelters in Yunnan Tin have also taken maintenance downtime to
compensate for the shortfall of raw material.
5. Recently in 2021, Myanmar military coup + LME market dwindling tin
inventories might have just squeezed the tin supply even further and
resulted in tin shortage/deficit. Hence, tin prices could possibly stand
above 20k as supply is struggling to meet resurgent demand.
6. Global tin demand is recovering, due to the rising electronic sales
as more people stay at home due to the pandemic. With the rollout of 5G
networks and EV which require atleadt 25% more chips and hence demand
for tin soldering (which is the biggest use of tin) in order to connect
components.
7. China's internal supply dynamics seem to be struggling to keep up
with current demand, let alone finding sufficient mine resource to meet
future soldering demand.
8. Tin remains as the metals most impacted by new technology with its
wide application and storage capability in terms of battery storage. Tin
improves conductivity and tin foils could be used instead of copper
anode in replacing lithium-ion batteries.
9. MSC Tin Mining segment is expected to contributed positively which
is attributed by its new mine at Sungai Lembing and increased daily
average production at existing mines. Both are currently operating at
full capacity.
10. Both Butterworth and Pulau Indah smelters of MSC are in operations
(albeit at 25% capacity for new smelter but refurbished with better
efficiency) which will increase refined tin output to meet current high
demand.
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https://klse.i3investor.com/blogs/HumbledInvestor/2021-02-07-story-h1540990270-_Humbled_Investor_Malaysia_Smelting_Corporation_MSC.jsp
