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HUAAN Facts & Figures for March 2018 Quarter

spectre007
Publish date: Thu, 15 Mar 2018, 01:51 AM
The information contained in this blog is for sharing purposes only. Any reliance placed on the information shared here is entirely at your own risk.

Extracted from Dec 17 quarterly report: 
During this quarter under review, the average coke price was approximately RMB2,019 per tonne and the total cumulative sales volume stood at approximately 215,000 tonnes. Contribution from the by-products was accounted for approximately 15% of the total revenue of the Group during the quarter under review. The Group has recorded a cost of sales amounting to approximately RM246.7 million during the current quarter under review with the average coal price recorded at approximately RMB1,317 per tonne. Following therefrom, the Group recorded a gross profit of approximately RM30.0 million in the current quarter under review. 

Average Coke Price (contributes to Sales)
Jan 2018 RMB1,997 to RMB2,293 
Feb 2018 RMB2,079 
Mar 2018 (up to 14th) RMB2,200 

Average Coal Price (contributes to Cost of Sales)
Jan 2018 RMB1,300 to RMB1,511 
Feb 2018 RMB1,301 to RMB1,400 
Mar 2018 (up to 14th) RMB1,301 

(Average prices extracted from investing.com)

Assuming consistent outputs (if not, more outputs due to higher demands as a result of those tariffs), it appears that Huaan's profit for the coming quarter is intact (or might even be better margins than the previous quarter of approx RM30.0 million as reported). 

The recent panic selling due largely to the Trump's tariffs is uncalled for. There is NO correlation between those tariffs and Huaan's core business. So why worry? Why follow the herd and throw your money away? Why panic and sell to those who will collect and profit from your stocks?

Decide for yourself whether it's a STRONG BUY at current prices and for those who are still holding, it's definitely a mega sale going on (suggest to add on to lower down your average price). Take advantage of the uncertainty/panic selling in the last few days. This stock is definitely UNDERVALUED and OVERSOLD now. 

Trade at your own risk and Good Luck! Happy to see comments :)

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1 person likes this. Showing 5 of 5 comments

qqq3

why look at red chip?

2018-03-15 03:24

Mohd Fahmi Bin Jaes

price will be more down

2018-03-15 05:25

ordinaryjoe

good sharing effort.

What is your reference of recent panic selling?? from share price of 60 sen?

If so, wouldn't you reckon that there was irrational panic buying from 30 sen to 60 plus sen? Or merely speculation and the rather muted 4Q result pricked the bubble?

The NTA of Huaan is still below the current share price. Cyclical stock at this stage, with high level of uncertainties, normally only trade at single digit PER.

2018-03-19 19:18

Effendy Tay

It's merely speculation

2018-04-05 12:19

ChloeTai

Wait for Mr Ooi Teik Bee's email first on the FA and TA of Huaan before coming to any conclusion.

2018-05-28 19:35

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