Hiap Teck : Likely to report strong 1QFY07/10 performance Market Perform

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We believe 1QFY07/10 performance is likely to come in above our as well as the market expectations on the back of margin expansion at the manufacturing division arising from stable steel prices.
To pre-empt the better-than-expected set of performance, we are raising FY07/10-12 net profit forecasts by 10.3%, 6.6% and 6.3% respectively, to reflect better margins at the manufacturing division.
Correspondingly, indicative fair value is raised by 8.3% from RM1.44 to RM1.56 based on 7x revised CY2010 EPS of 22.3 sen.