Hiap Teck Venture Bhd (Hiaptek) is involved in the manufacture of steel pipes & other related products as well as in the distribution of hardware and building materials.
Recent Financial Result
Hiaptek’s turnover increased 22.3% q-o-q or 107.2% y-o-y to RM341.8 mil. Its net profit jumped 75.7% q-o-q or 337.4% y-o-y to RM19.1 mil.
Valuation
Based on the last quarter’s EPS of 5.87 sen, Hiaptek’s full year EPS is projected to be 23.5 sen. As the share closed at RM0.885 yesterday, Hiaptek is now trading at a PE of 3.8 times.
Technical Outlook
Hiaptek has broken above its medium-term downtrend line last week at the RM0.88 level. The share price is trapped in an ascending triangle with the upside breakout at RM0.92/93 level. See the weekly chart (Chart 1) below.
Chart 1: Hiaptek's weekly chart as at Sep 26
Chart 2: Hiaptek's daily chart as at Sep 26
Conclusion
Based on very attractive valuation, nice technical set-up & good outlook for the demand for steel pipes from the water sector as well as oil & gas sector, Hiaptek is a good long-term investment.
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