Hiaptek- price recovery may have started

by **hlk** Thu 24 Oct 2013, 22:36

Hiap Teck Ventures Bhd ('Hiaptek') is involved in the manufacture, rental, and distribution of steel pipes, hollow sections, scaffolding equipment and accessories, and other steel products.

For FY2013, it reported a net profit of RM24.3 million in a revenue of RM1.11 billion. This is an improvement over last year result, where its net profit was RM16.6 million while revenue was RM1.12 billion. Its earning inched up from 3.1 sen in FY2012 to 3.4 sen in FY2013. For more, go here.

In May, the stock has broken above its long-term downtrend line and it has since been moving sideway. In the past 2-3 days, it was attempting to break above its recent high of RM0.66. The same movement was noted for the warrant but it has yet to even test its recent high of RM0.25. If the warrant can breach the RM0.25 mark, this stock and the warrant could begin its upleg.

Based on technical consideration, Hiaptek could be a good stock for trading BUY or even a medium-term investment if these securities can stay above their breakout level.

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Chart 1: Hiapteck's weekly chart as at Oct 23, 2013_3.00pm (Source: Quickcharts)

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Chart 2: Hiapteck-WA's weekly chart as at Oct 23, 2013_3.00pm (Source: Quickcharts)

As at 9.40 am, Hiapteck & Hiaptek-WA were trading at RM0.66 & RM0.255, respectively.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Hiaptek.

Author: Alex Lu