KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Shares of Tangshan Jidong Cement just jumped 30% this month — but before you chase the rally, take a closer look. Despite the price spike, this might not be a growth story.
In fact, this cement stock is trading at a humble P/S of just 0.6x, well below its Basic Materials peers in China, many of which trade above 1.6x — and some over 5x.
So is this a screaming value buy? Or is the market sending a warning?
What’s Beneath the Surface?
Last 12 months revenue: -2.1%
3-year revenue trend: -29% total
Forward revenue growth estimate: just +0.6% (vs industry +8.1%)
Those numbers tell a tough story: this isn’t a high-growth business anymore.
What’s Driving the Low Valuation?
Revenue is shrinking, and even bullish analysts don’t see a strong rebound.
The market sees better growth elsewhere in the Basic Materials space.
Investors are cautious, pricing in stagnation — or worse, another leg down.
Still, with a low P/S and recent price surge, some contrarian traders are sniffing around for short-term upside or reversion plays.
But Be Careful
This rally might look exciting, but remember:
Not all cheap stocks are good value — and not all bounces are sustainable.
Tangshan Jidong Cement's low P/S doesn’t signal deep value unless revenue stabilizes or surprises to the upside. And with 2 red flags in the risk profile, this might not be the long-term hold some investors are hoping for.
TL;DR
- P/S of 0.6x makes it look cheap
- Revenue is shrinking, not growing
- Analysts expect flat results next year
So while the recent 30% spike caught attention, this looks more like a technical rally than a fundamental turnaround.
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