HG Metal has been a position that i have added in 2022 and so far my gains and losses are +/- 3%.
It has presented a decent result in 1H 2022 with eps of 5.12 cents. Should it continue its trend, it will mean that earnings come in at around 10 cents and trading at a PE of less than 4 as its trading price is 39 cents.
Furthermore, the net asset value of the company stands at 89 cents.
Ever since 2019, the company has shifted its focus from trading to manufacturing. This can be seen in its manufacturing segment profit growing since 2019 while its trading segment has had mixed results.
Manufacturing Profit growing while Trading Segment has mixed results.
In thinking about how the earnings might go in the second half, i decided to take a look at 3 things.
1) Steel Rebar Prices
2) Steel Rebar Demand
3) Competitor
1) Steel Rebar Prices
The average price of steel in 2022 2H is 1060,...