KUALA LUMPUR: Hong Leong Investment Bank (HLIB) expects Hiap Teck Venture Bhd to be due for a re-rating on the back of improving sector earnings prospects. "HTVB’s net debt and net gearing ratio have been on a declining trend since FY19, mainly attributed to its improving financial performance and absence of major capex commitment. "It is also one of the lowest geared compared to its peers in Malaysia. Hiap Teck Venture's undemanding valuation could be owing to a negative perception of the steel sector and the lack of research coverage on the stock, it added. It initiated coverage with a "buy" rating and target price of 63 sen.

Source: The Star April 25, 2022 02:07 UTC