Case Study: Malaysia Steel Works And Kossan Rubber Industries

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The companies I have selected for this assignment is Malaysia Steel Works (KL) Bhd (5098) and Kossan Rubber Industries Bhd. (7153), both of the company is from industrial products sector and its share is traded in main market. Malaysia Steel Works (KL) Bhd From Bursa Saham Malaysia , Malaysia Steel Works (KL) Berhad (Masteel) started its business in 1971 and it is one of the head steel maker in Malaysia. Masteel is engaged in manufacturing and marketing of high tensile steel bars, mild steel bars and also prime steel billets. This manufacturing company is based in Shah Alam and its factories are located at Petaling Jaya and Bukit Raja, Klang in the state of Selangor. It makes Masteel has a benefit on having a lower transportation costs compared to others competitors. Every year Masteel can produce 50 million tonnes of Billet mill and the production can increase up to 65 million tonnes in year 2016. This is because Masteel have invested RM100 million of capital expenditure to build a new factory which …show more content…

The joint venture company between Masteel and KUB and called Metropolitan Commuter Network Sdn. Bhd(MCN) with 60% is owned by Masteel and the remain is by KUBThis project began in January 2011 and the proposal got approved by Johor state government in April 2011. The reason I select Masteel’ stock to analyse is because I have looked back the historical stock chart of Masteel from 2009 to 2015, it is a declining price movement. Masteel achived the highest RM1.5 price in 2011 but it reduced to RM0.4 price in 2015. This historical price of stock in Masteel made me curios on its current intrinsic value and are this stock is worth to invest now? Thus, I would like to analyse Masteel’s stock value through stock valuation in part B, to figure out whether Masteel is worth to invest now and expect the price will increase in future. Kossan Rubber Industries

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