Hiap Teck 35% associated company Eastern Steel Sdn Bhd made this announcement on June 4 2021, written by: P&T Dept. Guan Yan Jie.

ESSB Sets New Production Record for Iron and Steel Again: The controlling shareholder of ESSB is Beijing Jianlong.

Beijing Jianlong Heavy Industry Group Co., Ltd. ("Beijing Jianlong") is a large-scale conglomerate group of companies comprising mineral resources, steel manufacturing, ship building, mechanical and electrical industries. The Group operating in a variety of industries covering resources exploration, mining, mineral processing, smelting, processing, mechanical and electrical products manufacturing. At present, it has 35 million tons of crude steel manufacturing and rolling capacity, ranking eighth in the world and fifth in China. It ranks 137th among the top 500 Chinese enterprises in 2020 and 50th among the top 500 Chinese manufacturing enterprises in 2020.

Even COVID-19 pandemic in Malaysia has become more serious in the May, and production and operation of company has affected by the Movement Control Order 3.0. But Eastern Steel still keep up with industry trends, seized opportunities, and insisted the principle of "improving production and efficiency" throughout overall process in production and operation. Besides, employees of each department are following various epidemic prevention measures, fulfilling their duties, carry out inspection and operation carefully. The iron and steel production achieved total 8 breakthroughs through their efforts, and the production record was set many times in May.

The production of crude iron was reached 2535 tons on 8 May, it broke the record of 2525 tons on 11 May 2019. Then set the new record again on 9th May with 2564 tons and. On 15 May, the 600m3 blast furnace reached production of 2585tons, the utilization factor of 4.31 reached advanced level of the industry.

The production of steel slab was reached 3011 tons of on 7 May, it broke the record of 2892 tons on 19 Jan 2020. Then the production of steel slab has set the new record again by 3038 tons on 10 May and 3055 tons on 26 May.

The monthly production of crude iron in May is 76087.92 tons, it has broken the best historical records of 75264.37 tons in December 2019. The monthly production of steel slab in May is 80746.64 tons, it has broken the best record of 75644.83tons set in December 2019, and also exceeded 80,000 tons for the first time.

As shown on the 2 charts above, the number of new daily Covid 19 cases has been dropping rapidly due to rapid increase of vaccination. On 28 Aug we had more than 22,000 new Covid 19 cases and on 10 Oct we have only 7.373 new cases. As a result, our Prime Minister announced there will be no more MCO and inter-states travel is permitted from yesterday.

Covid Pandemic MCO has been affecting almost all business operations because workers cannot go work. Even with this obstacle, Hiap Teck still reported reasonably good profit.

In the last quarter ending July Hiap Teck’s profit was reduced because its Kelang factory was shut down for 2 months and ESSB was shut down for 1 month as you see from its announcement above. 

Why is Hiap Teck the cheapest stock among all the steel manufacturers as shown on the table below??? 

Based on Eastern Steel’s rapid increase in steel production and no more MCO, Hiap Teck should report excellent profit in its next quarter ending Oct which will be announced before the end of December. 

Please note:

According to Mr Ooi Teck Bee, Hiap Teck’s price chart is forming cup and handle which means its share price should continue to go up higher and higher.

Those who are interested to learn charting should contact Mr Ooi Teck Bee, tel 011-12813880.