Union Steel is involved in the collection and processing of
scrap metals. The recycled metals are sold to steel mills,
foundries, metals fabricators and metals brokers. It sells ferrous
metals (such as steel and heavy melting scrap steel) and
non-ferrous metals (such as copper, aluminum and stainless steel),
as steel plates, reinforcement steel bars, H-beams, I-beams, pipes
and sheet piles to our customers which include trading houses,
construction companies and engineering companies. It operates its
own island-wide scrap metal collection to obtain scrap steel at low
cost.
The company generated sales of S$112m during FY2004 (86% from
recycling, 12% from trading, 2% from other activities), and profit
from operations of S$12.7m. Most business is derived from China,
Indonesia and Singapore. Union Steel states an initial intention to
pay out 30% of net earnings as cash dividend, which should be
nearly 1 cent per share for FY2005 based on first-half results
(almost 5% yield at the 20c offer price).
Would you guys consider investing in this company? Im a bit
hesitant considering what happen to Citiraya and Nico Steel....
But this company looks ok only...not that fantastic in my
opinion...
