Stock Name: HIAPTEK
Company Name: HIAP TECK VENTURE BHD
KUALA LUMPUR: HIAP TECK VENTURE BHD []'s share price slipped on Friday, July 22 as analysts were cautious about the venture into the upstream steel mill project.
At 4.05pm, it was down four sen to RM1.10 with 2.31 million shares transacted.
OSK Research has a Sell call on Hiap Teck Venture and reduced its fair value to 95 sen as it was cautious about the latest venture.
Hiap Teck's 55% owned Eastern Steel Sdn Bhd had entered into an engineering and procurement contract and a CONSTRUCTION [] contract with China Shougang International Trade and Engineering Corporation for the 1st phase design, procurement and construction of its integrated steel mill in Terengganu.
'We continue to remain cautious on this upstream venture, given the capex intensive nature and new learning curve in operating a blast furnace, the dilution in their share price from its proposed rights issue, and struggling earnings with poor visibility beyond 6 months for the sector.
'We downgrade the Company to SELL from NEUTRAL, while holding our FV of 95 sen at 8.0 times FY12 EPS given its recent share price run-up of 20% ahead of our FV,' it said.
Company Name: HIAP TECK VENTURE BHD
| Research House: OSK | Price Call: SELL | Target Price: 0.95 |
KUALA LUMPUR: HIAP TECK VENTURE BHD []'s share price slipped on Friday, July 22 as analysts were cautious about the venture into the upstream steel mill project.
At 4.05pm, it was down four sen to RM1.10 with 2.31 million shares transacted.
OSK Research has a Sell call on Hiap Teck Venture and reduced its fair value to 95 sen as it was cautious about the latest venture.
Hiap Teck's 55% owned Eastern Steel Sdn Bhd had entered into an engineering and procurement contract and a CONSTRUCTION [] contract with China Shougang International Trade and Engineering Corporation for the 1st phase design, procurement and construction of its integrated steel mill in Terengganu.
'We continue to remain cautious on this upstream venture, given the capex intensive nature and new learning curve in operating a blast furnace, the dilution in their share price from its proposed rights issue, and struggling earnings with poor visibility beyond 6 months for the sector.
'We downgrade the Company to SELL from NEUTRAL, while holding our FV of 95 sen at 8.0 times FY12 EPS given its recent share price run-up of 20% ahead of our FV,' it said.
OSK is just talking nonsense as I lost faith in all OSK research reports...this is a really good counter otherwise Tabung Haji won't buy & buy recently. Yes Tabung Haji is a smart investor.....so shouldn't you be too?
ReplyDeleteHiaptek- on the verge of breaking above its downtrend line
ReplyDeleteThe Star reported that Hiap Teck Ventures Bhd, through its 55% owned subsidiary Eastern Steel Sdn Bhd "has entered into an engineering and procurement contract and a construction contract with China Shougang International Trade and Engineering Corp for the design, procurement and construction of the first phase of an integrated steel mill in Teluk Kalung, Kemaman, Terengganu."
"The contract value for the engineering and procurement contract is RM417.83mil, while the construction contract is RM232mil. This integrated steel mill will have an annual capacity of 0.7mil tonnes of steel while the completed integrated steel mill will have a total annual capacity of 3.5mil tonnes of steel. This project plant is expected to be completed by 2013".
It is also reported that Hiap Teck & China Shougang has entered into a supplemental agreement "whereby Hiap Teck will issue to China Shougang or its nominated affiliates 32.2 milllion Hiap Teck shares as placement shares, at an issue price to be agreed upon".
From the chart below, we can see that Hiap Teck is in a downtrend line, with resistance at RM1.15. This coincides with the horizontal line at RM1.15. If the stock can break above this resistance, the technical outlook could turn bullish. Its next resistance levels are at RM1.30 and then at RM1.50. As such, Hiap Teck is on the verge of a bullish breakout.
http://nexttrade.blogspot.com/2011/07/hiaptek-on-verge-of-breaking-above-its.html
HiapTeck , I will see you at $1.60 to $1.80
ReplyDeleteGood stock. I fully support Steven statement & will buy & buy this Tuesday morning too. Hope to make a bundle too.
ReplyDeleteGood, I follow Steven and Anonymous & buy today & wait for it to go higher & higher.
ReplyDelete