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Kitichai Taechangamlert speaks with Economist Shayne Heffernan on Sahaviriya Steel Industries

Sahaviriya Steel Industries has already been severely discounted all the bad news (the bad earning ‘s performance of 2011 : the increase of its material in the beginning of 2011 from Australia, the earthquake n Tsunami in Japan, the financial turmoil in EU, and the flood in Thailand).

The investors are looking for the coming good news from the starting its operation of SSI-UK(expect in March 2012), the pent-up demand of the auto and electronic sectors, Thai ‘s government ‘s mega projects such as flood preventing, mass transportation, etc. Sahaviriya Steel Industries price per book value is merely 0.56, very low valuation.

Sahaviriya Steel Industries CEO, Khun Win said that SSI-UK will operate with full capacity in Q4 of 2012, so it will generate more revenue n earning to SSI. If one looks at its technical chart, you may notice that its 5 days EMA has just broken is 10 days EMA last Friday, and will break its 25 and 75 days EMA today. Its MACD will break its MA today, showing a STRONG BUY SIGNAL.

Sahaviriya Steel Industries Public Company Limited, together with its subsidiaries, manufactures and distributes hot rolled coils in Thailand. The company offers hot rolled steel sheet in coils, hot-rolled coils picked and oiled products, cold rolled steel sheets, electro-galvanized coils, round steel bars and deformed steel bars, wire rods, and C-channels.

It also provides deep-sea port services, and maintenance and engineering services, as well as engineering design services. The company sells its products to customers for direct use in automobiles and parts, gas cylinders, steel structures, steel pipe, and home appliances industries, as well as for cold-rolled steel sheet industry. It also exports its products internationally. Sahaviriya Steel Industries Public Company Limited was founded in 1990 and is headquartered in Bangkok, Thailand.

(Unit: M.Baht)
Period as of	Y/E ’08 31/12/2008	Y/E ’09 31/12/2009	Y/E ’10 31/12/2010	Y/E ’11 31/12/2011
Financial Data
Assets	41,786.34	42,773.25	42,492.56	86,363.66
Liabilities	25,003.21	25,018.15	22,617.13	61,415.87
Equity	16,014.04	16,959.50	19,033.42	24,095.76
Paid-up Capital	13,101.28	13,101.28	13,101.28	18,184.11
Revenue	27,894.27	39,010.55	48,538.00	53,306.41
Net Profit	-5,166.20	1,273.20	2,445.81	-980.77
EPS (Baht)	-0.39	0.10	0.19	-0.06
Financial Ratio
ROA(%)	-11.28	5.57	7.97	1.15
ROE(%)	-26.72	7.72	13.59	-4.55
Net Profit Margin(%)	-18.52	3.26	5.04	-1.84
Statistics as of	30/12/2008	30/12/2009	30/12/2010	30/12/2011	26/03/2012
Last Price(Baht)	0.53	1.20	1.50	0.71	0.80
Market Cap.	6,943.68	15,721.54	19,651.92	12,910.72	14,547.29
F/S Period (As of date)	30/09/2008	30/09/2009	30/09/2010	30/09/2011	31/12/2011
P/E	13.56	N.A.	5.55	8.91	N.A.
P/BV	0.31	0.99	1.03	0.49	0.60
Book Value per share (Baht)	1.69	1.21	1.45	1.45	1.33
Dvd. Yield(%)	9.43	N.A.	N.A.	N.A.	N.A

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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