HupSteel

HupSteel: 1H13 earnings were released, with a decline in revenues of 42% y/y to $67m, and decline of 64% y/y in profits to $1.4m. This was mainly attributed to fewer project sales, sluggish demand for structural steel products persisting from 1Q13 and customers postponing deliveries due to inclement weather during the period. However, gross profit margin for 2Q13 improved to 13.5% from 11.1% due to the more stable prices of pipes & fittings and these products made up a higher proportion in volume mix during the quarter. Company posted dismay results after its peer Asia Enterprises Holdings came out with a profit warning for the same period, with similar reasons were cited such as weak demand, weak selling prices due to competition were issued. HupSteel's share price has increased by 18% for the year, and saw a sharp spike after the govt release its White Paper, citing an increase of projects in the infrastructure pipeline. Currently HupSteel is trading at 32.6x P/E, 0.7x P/B.