HIAPTEK (5072) HIAP TECK VENTURE BHD is cheapest Steel Producer - Koon Yew Yin
Steel price is rising:
The steel price chart below shows that steel price has gone up from 3,750 to 5,835, 50% increase in the last 12 months due to various reasons. One of the reasons is that China has been the world largest steel exporter before and it has stopped exporting because it wants to reduce the use of coal to produce steel to improve its air quality and environment.
Covid 19 shut down
Hiap Teck reported revenue Rm 164.8 million and EPS 4.26sen for the quarter ending July. Its previous quarter ending April, revenue Rm 329.6 million and EPS 4.79sen. Its revenue has dropped about 50% but its EPS has dropped only about 12% despite of its factory in Kelang was shut down for 2 months and its associate Eastern Steel plant in Treggannu was shut down for 1 month.
Covid 19 cases is reducing:
The number of new Covid 19 cases is reducing so rapidly, largely due to the rapid vaccination rate. As shown on the charts below, on 26 Aug the number of new Covid 19 cases was 24,599 and on 4 Oct the number of new Covid 19 cases was only 8,075.
Vaccination
Currently 44.6 million doses of vaccine were injected to 20.7 million people which is 64% of our population.
Last month alone, 5 million people were vaccinated. If this month another 5 million people were to be vaccinated, the total number of people vaccinated would be 25.7 million, equal to about 80% of our population.
From next month, there will no more MCO lock down and people will be free to move about. Based on the above facts, Hiap Teck should be able to report much better profit in the next few quarters.
Based on current prices, Hiap Teck is the cheapest stock among all the steel producers in Malaysia as shown on the comparison below.
|
Name |
price |
Latest EPS |
EPS divided by price |
|
Hiaptek |
56sen |
4.26sen |
7.6 |
|
Melewar |
41.8sen |
2.64sen |
6.4 |
|
AnnJoo |
Rm2.65 |
15.48sen |
5.8 |
|
CSC Steel |
Rm1.31 |
4.18sen |
3.2 |
I wish to point out Mr Ooi Teck Bee’s latest weekly recommendation especially the chart formation of Hiap Teck.
HIAPTEK (5072) HIAP TECK VENTURE BHD - Cup And Handle Chart Formation
The present chart pattern will form a Cup And Handle Chart.
Please note that Parabolic SAR buy signal (Green ball) has appeared.
The pivot line of this Cup And Handle Chart is at 0.615.
Once the 0.615 major resistance line is overcome, the Cup And Handle Chart is formed.
The slogan for a Cup And Handle Chart is "the sky is the limit".
Investors should take this great opportunity to buy Hiap Teck. Mr Ooi Teck Bee has named Hiap Teck Miss Universe.
https://klse.i3investor.com/blogs/koonyewyinblog/2021-10-06-story-h1591932728-Hiap_Teck_is_cheapest_Steel_Producer_Koon_Yew_Yin.jsp
