PETALING JAYA: Hiap Teck Venture Bhd ’s third-quarter financial year 2026 (3Q26) performance may soften sequentially on seasonality and weaker steel prices although its 27%-owned Eastern Steel Sdn Bhd (ESSB) remains resilient on higher utilisation. Hong Leong Investment Bank (HLIB) Research noted Hiap Teck’s 1H26 core earnings more than doubled to RM61.9mil from RM28.5mil, driven mainly by improved performance at trading and downstream segments. “That said, ESSB’s performance should remain resilient, with margin pressure from weaker prices mitigated by continued operational gains from higher HRC plant utilisation,” HLIB Research stated. ESSB may face higher transportation costs, as over 50% of its products are exported to Italy and Turkiye, it added. HLIB Research is also positive on Hiap Teck’s move to acquire a 27.3% stake in East Coast Eastern Steel Industrial Park Sdn Bhd, the operator of ESSB’s industrial park in Kemaman, Terengganu.

Source: The Star April 08, 2026 02:34 UTC