lowest on 2016 is 18sen now even loss aLSO CONTIN UE UP but I misssee hiaptek , I only bot anjoo , but hiaptek from 18sen to 45sen actuaklly earn more than my anjoo now start monitor hiaptek if drop sapu
The company outlook is highly dependent on the steel price. Given that the commodity has seen some price pressure (in Yuan term, steel has fallen by more than 20% in the past 2 months. In USD it should be higher) some investors are anticipating that the future performance of the company might be negatively affected. That being said average 2018 price is still higher than 2017 so I don’t think the company’s core performance will be worse than FY17.
However, please take note that the disposal of Eastern Steel Sdn Bhd (ESSB) to Jianlong was completed on the 1st Nov 2018. The company is expected to record a loss of disposal amounting to RM21.8mil in the 2Q19 which will most probably drag the company’s overall performance for the quarter to a loss of around RM10mil.
That being said it would also signal a potential turnaround of ESSB given the expertise that Jianlong (8th biggest steel producer in China and 16th biggest globally) would bring to the company. Hiap Tek losses from FY15 to FY17 was mainly due to the bad performance of ESSB (back then the company exposure was 55%). The core business itself was profitable but very volatile in line with the volatility of the steel price. If ESSB can even record a small profit in the future, that would actually mean a potential improvement of at least RM50mil to the company’s PBT. Investors will need to be patient though, as the turnaround may take some time to realised with FY20 being the earliest in my opinion.
If you are looking to diversify your portfolio outside of the steel industry (due to the volatility of its performance), I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.5x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analyst has a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.18.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jumbojet
294 posts
Posted by jumbojet > 2018-08-12 21:49 | Report Abuse
its already late