Excel – http://1drv.ms/1pa2zLD
– Fair value/Market Timing
– EY%: Buy below 0.64, sell above 1.18
– As of FY14 Q3, PANTECH recorded cumulative revenue 447,178 which is 30% lower than FY13 revenue 635,663. I think the next two quarters could be quiet for the trading division given that the fabrication and downstream oil and gas projects in Malaysia are still sluggish. PANTECH is still contesting the US anti-dumping suit in its stainless steel division. A resolution is expected by July-14. As mentioned previously, PANTECH’s alternative strategy is to shift production to higher-end stainless steel fittings production (which is not subject to such anti-dumping laws and have higher margins than stainless steel pipes); and is actively exploring other potential export markets such as South America and Europe.
– PANTECH envisages better fortune from 2Q15 onwards, which would coincide with our view that fabrication contracts will likely only materialize from 2QCY14 onwards.
– For more risks/challenges and growth drivers, please read https://lcchong.files.wordpress.com/2014/03/pantech-the-busy-weekly-22022014.pdf
– I will put PANTECH in the Reserved List for the time being.
Latest Financial – Q3 2014 Financial Report (22 Jan 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1522453
At the time of writing, I did not own shares of PANTECH.