PETALING JAYA: Steel manufacturer Hiap Teck Venture Bhd
is expected to weather near-term challenges and have an improved business outlook over the longer-term.
This will be underpinned by the rollout of major infrastructure projects and a wider product range following the completion of a plant.
Hong Leong Investment Bank (HLIB) Research said it was looking beyond near-term earnings headwinds due to lower steel prices, coupled with higher input costs to more robust demand from the domestic private sector, on the rollout of more major infrastructure projects.
It added that an improving cost structure following the construction of auxiliary facilities, as well as the scheduled completion of 27.3% associate Eastern Steel Sdn Bhd’s hot rolled coil plant that enhances the company’s product offerings in the domestic and overseas markets, should also be positive for the longer-term.
...
