Koon Yew Yin's Blog
Hengyuan's future is bleak - Koon Yew Yin
Koon Yew Yin
Publish date: Thu, 07 Jul 2022, 10:24 AM
Koon Yew Yin
0 1,428
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Russia invaded Ukraine on 24 February. As a result, all NATO countries including US have imposed trade sanction against Russia. Those NATO countries which have been buying Russian gas and petroleum are finding alternative source of supply.
To protect Russia’s own interest, Russia signed a new oil sale agreement with China. Russia has agreed a 30-year contract to supply gas to China via a new pipeline and will settle the new gas sales in euros, bolstering an energy alliance with Beijing amid Moscow's strained ties with the West over Ukraine and other issues.
Gazprom, which has a monopoly on Russian gas exports by pipeline, agreed to supply Chinese state energy major CNPC with 10 billion cubic metres of gas a year, the Russian firm and a Beijing-based industry official said.
Existing supply agreement:
Russia already sends gas to China via its Power of Siberia pipeline, which began pumping supplies in 2019, and by shipping liquefied natural gas (LNG). It exported 16.5 billion cubic metres (bcm) of gas to China in 2021.
China will benefit the most:
As a result, natural gas and Crude oil prices have been dropping sharply. Moreover, the Brent Crack Spread margin has also been dropping sharply as shown on the 3 charts below:
Brent Crack Spread margin has also been plunging sharply from 33% to 20% in the last few days as shown on the chart below.
In view of the slump in gas and crude oil prices and the Brent Crack Spread margin reduction, Investors are rushing to sell their holdings. As a result, Hengyuan share price has been dropping from Rm 7.50 on 18th May to the current level of Rm 4.27 as shown on the price chart above. It has dropped Rm 3.23 or 43% in less than 2 months.
It has dropped 35 sen today. No one can tell when it will stop dropping. Fortunately, I sold all my holdings earlier.
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Discussions
Be the first to like this. Showing 19 of 19 comments
Why is uncle writing this article? He wants you to sell so he can buy cheap, that is my thinking.
2022-07-07 12:25
He is just trying to prevent you guys from being bitten by the same snake twice. It is a very stup1d thing to get bitten by the same snake. Means you have learnt nothing. You don't learn from your own mistakes.
2022-07-07 18:49
Lost my respect to KYY, badmouth after sold to make holder suffer further,. Didn't said a thing when RM6, 7....正一落井下石的行為, 一把年纪行下好心, 给條生路人行！
Lucky I didn't follow KYY big time into HY
.
2022-07-07 21:26
We Hengyuan investors are very happy. Please uncle, write more article to condemn Hengyuan so the share will up a lot. Thank you
2022-07-08 09:13
I agree with KYY this time. HYR future is really bleak. Reasons:
1. How does a refinery report its profit? You know what does it means by replacement cost? Has the crude oil price peaked?
2. How is the crack spread heading? Do you know why major oil companies had disposed their refineries few years back on negative refinery margin? Why Shell sold its Port Dickson refinery to a China company way below its NTA then?
3. Do you believe Ukraine War will end one day? What will happen to the supply of crude oil then?
4. Do you know the whole world is heading for stagflation/recession/depression in the midst of high inflation? What is the effect on the demand of crude oil? Ref to para 1 & 2 above to see the outcome.
5. Don't ever believe in a red chip stock. A red chip stock forever a red chip. Remember when it was 'making' billions during those years and declared only 10 sen dividend?
2022-07-08 09:45
Let him enjoy what he said afterall he got not much time left perhaps tomorrow comes.
2022-07-08 11:24
KYY hasn't even shown us a good stock and he has LOST MILLIONS cos he is is clueless and doesn't know anything
2022-07-09 22:00
All his stock recommendations went Holland because he might have listened to some people who knows nothing about investment but only pump and dump...
2022-07-09 23:45
KYY is a washout. Lots millions now come up with grandfather stories. How well is Subur now? Or JTIASA ? No buy call ? Wakakakakaka
2022-07-11 07:58
Mr KYY, please write another article to recommend Hengyuan again.
You betrayed and talk bad about OTB, you should know who is Mr Right.
gohkimhock - Hengyuan is not a Holland stock.
ks55 - Hengyuan is not a red chip. Do not need 3 years to prove you are wrong.
If you do your homework well, you will not talk so bad about Hengyuan.
2022-08-23 15:52
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Uncle, are you buying???
2022-07-07 11:29