CIRCULAR TO SHAREHOLDERS IN RELATION TO PROPOSED RENEWAL OF AUTHORITY FOR AYS VENTURES BERHAD TO PURCHASE ITS OWN SHARES OF UP TO 10% OF THE ISSUED SHARE CAPITAL
OTHERSAYS VENTURES BERHAD ("AYS" OR THE "COMPANY")
PROPOSED RENEWAL OF AUTHORITY FOR THE COMPANY TO PURCHASE ITS OWN SHARES OF UP TO 10% OF THE ISSUED SHARE CAPITAL ("PROPOSED RENEWAL OF SHARE BUY-BACK")
Revitalizing the Steel Sector: Exploring Market Resilience and Financial Dynamics Amid Regulatory Changes
Steel stocks experienced a surge as early market leaders on November 15, following the commencement of a two-year moratorium by the Ministry of Investment, Trade, and Industry (Miti) effective from August 15. This initiative aims to address issues within the domestic iron and steel sector. The table provided below exhibits the gainers among steel stocks, listed in descending order based on their stock price increases. Additionally, various financial metrics of each stock are detailed to aid investors or traders in identifying stocks supported by strong fundamentals. Here, the focus is narrowed down to 5 out of the 18 stocks, considered worthy of attention.
$LYSAGHT / 9199 (LYSAGHT GALVANIZED STEEL BERHAD)
In the 2QFY23 ending on June 30, 2023, the company reported total revenue of RM19.77 million, marking a 7% increase from 2QFY22 due to heightened sales. Concurrently, the company's Profit Before Tax (PBT) rose from RM2.23 million to RM2.59 million, aligning with the revenue increase.
$ASTINO / 7162 (ASTINO BERHAD)
In the 4QFY23 ending on July 31, 2023, the company achieved total revenue of RM151.4 million, a decrease from RM158.1 million recorded in the previous year's corresponding quarter. This decline was attributed to weaker overseas sales, resulting in a 40.7% lower PBT than the corresponding quarter of the preceding year. The lower PBT was mainly due to subdued overseas market demand and higher inventory write-down.
$AYS / 5021 (AYS VENTURES BERHAD)
In the 1QFY24 ending on June 30, 2023, the company's revenue decreased by 15.61%, reaching RM297.211 million compared to RM352.171 million in the corresponding quarter of the previous year. This decline was primarily driven by lower revenue in both the Trading & Services and Manufacturing divisions. The company's operating profit and PBT also decreased due to lower sales volume, reduced average selling price, and higher interest expenses.
$LEONFB / 5232 (LEON FUAT BERHAD)
In the 2QFY23 ending on June 30, 2023, the company's revenue decreased by 13.4% to RM217.42 million compared to 2QFY22. This decline was predominantly due to reduced revenue from trading and processing of steel products, attributed to lower sales volume and decreased average selling prices.
$LSTEEL / 9881 (LEADER STEEL HOLDINGS BERHAD)
In the 2QFY23 ending on June 30, 2023, the company's revenue decreased by 1.3% to RM44.08 million compared to 2QFY22, primarily due to lower revenue generated in the steel segment. The drop in the steel segment's revenue was driven by reduced unit selling prices despite improved quantities sold, affecting the company's PBT, which faced a 45.3% decrease due to lower gross profit margins and one-off expenses related to ESOS.
CIRCULAR TO SHAREHOLDERS IN RELATION TO PROPOSED RENEWAL OF AUTHORITY FOR AYS VENTURES BERHAD TO PURCHASE ITS OWN SHARES OF UP TO 10% OF THE ISSUED SHARE CAPITAL