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
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An official blog in i3investor to publish sharing 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 22 of 22 comments

tehka

Uncle, are you buying???

1 month ago

ValueInvestor888

uncle call sell, it is a buy.

1 month ago

stockwin

Why is uncle writing this article? He wants you to sell so he can buy cheap, that is my thinking.

1 month ago

emsvsi

DEAR KOON
WHY DO YOU BADMOUTH A STOCK WHEN YOU'VE SOLD

1 month ago

gohkimhock

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.

1 month ago

DickyMe2

Post removed.Why?

1 month ago

tan1868

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
.

1 month ago

Hoho22

What a senile Crook!

1 month ago

tehka

We Hengyuan investors are very happy. Please uncle, write more article to condemn Hengyuan so the share will up a lot. Thank you

1 month ago

qqq3333

tehka > 26 minutes ago | Report Abuse

We Hengyuan investors are very happy
==========

what happpened to crack?

1 month ago

ks55

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?

1 month ago

qqq3333

ks, mm.................smart.................. crack at 30 never going to be sustainable..................... that is the true test, ............

1 month ago

qqq3333

smart is not buy or sell now................ smart is not getting people into HY at 7.

1 month ago

qqq3333

oil traders in singapore buy from Russia and sell to Europe.........free money.........................

1 month ago

Anonymous12567

Let him enjoy what he said afterall he got not much time left perhaps tomorrow comes.

1 month ago

stockhunter55

Unclekyy buy call is here, still waiting for what

1 month ago

Citadel123

HOLLAND

1 month ago

Ravi1969

KYY hasn't even shown us a good stock and he has LOST MILLIONS cos he is is clueless and doesn't know anything

1 month ago

Ravi1969

All KYY recommended stock already Holland like Jaks, JTIASA, Subur etc

1 month ago

gohkimhock

All his stock recommendations went Holland because he might have listened to some people who knows nothing about investment but only pump and dump...

1 month ago

Ravi1969

KYY is a washout. Lots millions now come up with grandfather stories. How well is Subur now? Or JTIASA ? No buy call ? Wakakakakaka

1 month ago

KooSan

celaka punya orang tua. Super Selfish!

1 month ago

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