Yunkong registered a 1st Half net profit of 15mil, that is an increased of 196%. Obviously this increased is indeed a positive result where it increase it EPS from a 8.02sen same quarter last year to a 11.88sen. If Yunkong retains it profit for the remaining quarters, it will bring a total of EPS to 26sen that will even enhance the PE to less than 2. Definitely a low PE base on current valuation of steel sector.
I subscribed to the right issue of Yunkong and the right issue offers a free warrant of every 2 shares to 1. As i wrote in my earlier article about Yunkong in which i recommended to take up the offer, if one opted to it then today he/she is really bearing the fruit at current trading price. I decided to unload the free warrant this morning at a price of RM0.25. Steel price is still at high level, i believed Yunkong will be benefited and able to further improve its result till year end. At current price, it is still relatively cheap where my target price is around RM0.80. However, above don't recommend a buy from me, act at your own risk. Till then happy trading......
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