HIAPTEK (5072) : Affin Hwang Research maintains Buy on Hiap Teck
KUALA LUMPUR: Affin Hwang Research has maintained its Buy call on Hiap Teck with a target price of 75 sen based on 13 times forward PE.
"We believe that most of negative news has already been reflected in the weak share price. Hiap Teck’s outlook for 2015 will continue to be challenging on the back of weak external outlook and persistent dumping activities," it said in a note on Thursday.
Affin Hwang added that Hiap Teck registered subpar net profit of RM2.8mil, which on an annualised basis was significantly lower than its FY15E forecast of RM52mil.
"The discrepancy was due to lower ASP from keen competition and share of losses from associates of RM5mil. No dividend was declared," it said.
Going forward, Affin Hwang expects the outlook for the sector to remain subdued due to uncertain global economic growth.
International prices will continue to remain under pressure from the oversupply situation from China.
"However, we believe that the impact will be partially cushioned by the domestic demand for steel products coming from existing and upcoming construction and infrastructure projects. In addition, the steel mill in Kemaman is now complete and is expected to commence production in March with a capacity of 60,000MT/month," it said.
http://www.thestar.com.my
KUALA LUMPUR: Affin Hwang Research has maintained its Buy call on Hiap Teck with a target price of 75 sen based on 13 times forward PE.
"We believe that most of negative news has already been reflected in the weak share price. Hiap Teck’s outlook for 2015 will continue to be challenging on the back of weak external outlook and persistent dumping activities," it said in a note on Thursday.
Affin Hwang added that Hiap Teck registered subpar net profit of RM2.8mil, which on an annualised basis was significantly lower than its FY15E forecast of RM52mil.
"The discrepancy was due to lower ASP from keen competition and share of losses from associates of RM5mil. No dividend was declared," it said.
Going forward, Affin Hwang expects the outlook for the sector to remain subdued due to uncertain global economic growth.
International prices will continue to remain under pressure from the oversupply situation from China.
"However, we believe that the impact will be partially cushioned by the domestic demand for steel products coming from existing and upcoming construction and infrastructure projects. In addition, the steel mill in Kemaman is now complete and is expected to commence production in March with a capacity of 60,000MT/month," it said.
http://www.thestar.com.my
