Beaten Down and Overlooked – Is ASTEEL Set for a Comeback?
Case Notes 44: In this video “Can a downstream focus reverse ASTEEL fortune?” I look at the potential for ASTEEL to turnaround its business. ASTEEL, a downstream flat steel player in Malaysia, has faced persistent challenges - limited scale, high fixed costs, and mounting interest expenses have kept profitability elusive. Yet, its strong correlation with steel prices suggests potential upside in a cyclical upturn. This video explores whether an optimistic turnaround case offers enough margin of safety to warrant investor attention. For more specific insights on the steel sector, refer to the following: Is CSC Steel one of the better Bursa steel stocks? A tough 12 years for Bursa Malaysia steel companies Is Lysaght a value trap? Is Engtex an investment opportunity? Is Astino a value trap? In my video, I cite the intrinsic value for ASTEEL. Refer to the Valuation Library for details of the valuation. For a visual insight of the business performance and investment risk of...