Why should AYS (5021) AYS VENTURES BHD rebound? Koon Yew Yin
Yesterday KLCI dropped 32 points and practically all the listed stocks dropped because of our 2022 budget announcement. The 2 proposals under Budget 2022 are likely to have a negative impact on Bursa’s earnings for the financial year ending Dec 31, 2022.
1 The increase in stamp duty of Rm 200 per contract note could reduce equities’ average daily volume as trading cost for investors rises.
Many investors are confused especially small day traders. They must remember that even if you traded a stock many times in a day, it is considered one contract and the stamp duty is Rm 200.
2 The introduction of the one-off special tax under “Cukai Makmur’ in 2022, with a higher tax of 33% versus 24% currently for pre-tax profit in excess of Rm 100 million. Only big capped companies are affected. AYS is not affected.
The last column of the above table shows AYS’ EPS for the last 4 quarters. Its EPS for its latest quarter ending June was 8.5 sen and its EPS for its previous was 4.45 sen, an increase of nearly 100%.
In view of the recovery from the Covid 19 pandemic, there will be no more MCO lockdown. As a result, all businesses and industries will recover. There will be more property and infrastructure construction which will require more steel and benefit all steel stocks especially AYS.