I take a wild guess that they revised it by following the steel price index. It was tumbled down from the peak atleast half for the pass year. Steel counter index in KLSE are exactly following the international steel price movement.
Be cautious when the share price failed to sustain. QR is approaching soon and the same strategy applies. First bad result was quashed off easily but if second round in a row would be quite challenging.
It is still unconvinced that the research house only looked at the steel price index to adjust down the TP from 45-50 cents to 24 cents within 1-2 months time coz steel price just only one of the factors. It is truth that if next quarter result also making more than 30 mil loss will affect the fundamental of this counter.
PETALING JAYA: Hiap Teck Venture Bhd anticipates steel demand in Malaysia to be driven by private consumption this year and is hopeful mega projects such as the Mass Rapid Transit 3 will be given the green light, which would help the recovery of the construction industry.
The company saw its net profit drop 20.6% year-on-year (y-o-y) to RM22.4mil for the second quarter ended Jan 31, 2023 despite an 8.2% y-o-y growth in revenue to RM360.6mil on a higher sales volume.
Cumulatively, for the six months ended Jan 31, it recorded a net loss of RM26.7mil, a 127% y-o-y reversal from the RM99.3mil net profit gained in the same period of the preceding financial year. In a similar vein to its quarterly performance, the loss was posted despite a 2.5% increase in revenue to RM758.4mil.
Nope! I have been holding it for five years and have taken profit multiple time. And have even bought at lower end price. This is one of the star performer in my portfolio.
Is Hiaptek making a comeback? All confident gurus deserted Hiaptek. Royal followers left biting the dust? The prospect looks good since China opening and promised investment by China. Does anyone know whether Hiaptek products are purchased by auto companies?
Hot rolled coil (HRC) is a flat-rolled steel product that is commonly used in a variety of applications. It is typically used to produce welded pipes, tubing, and structural shapes, as well as in the automotive, construction, and manufacturing industries. HRC is also used to make appliances, metal furniture, drums, and other products that require a strong and durable material. https://www.thestar.com.my/business/business-news/2023/04/07/higher-steel-prices-demand-to-lift-hiap-teck
Oh ok, you still make money averaging up and down, lucky or calculated strategy? DickyMe Nope! I have been holding it for five years and have taken profit multiple time. And have even bought at lower end price. This is one of the star performer in my portfolio.
Global prices have already gone up by 48.9% in 2023 so expect them to drop a little. Why panic? VincentTang Steel price big drop, sell all steel stock.
Steel is a cyclical commodity. So if you are a fundamental investor, you should be looking at the performance over the cycle. Hiap Teck ROE over the past 14 years averaged 2%. In comparison, the mean ROE of the Bursa steel sector averaged negative 1% as per https://focusmalaysia.my/its-been-a-tough-12-years-for-bursa-malaysias-steel-companies/ I would say Hiap Tech is worth a deeper analysis
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....
tksw
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Posted by tksw > 2023-02-13 15:15 | Report Abuse
Kevin Tam sifu, well said. These analyst really has no sense of responsibility. Target price move up and down easily in short period of time..