HUAAN annual capacity is 1,800,000 tonnes, so is equal to 450,000 tonnes per quarter.
Currently, all STEEL manufacturer and Metal Coke producer are running their operation at 100% capacity.

As a prudence investor, we should be very prudence when come to forecast.
Let said Huaan only produce 50% of 450,000 tonnes, that mean it is equal to 225,000 tonnes per quarter.

According to the article read from China website, the average profit margin is RMB300 per tonnes.

So 225,000 x RMB300 = RMB67,500,000.

RMB67,500,000 convert to Ringgit Malaysia will become +/-RM30,000,000.

Divided by 1,122,000,000 share available, then the EPS will be 2.6sen minimum.

The above is only using 50% production, if let said can achieve 70% production, the EPS will increase to 3.6 sen.

If EPS is 3.6 sen per quarter, then you guess how much HUAAN worth?

kikikiki....

This could be the last GEM in bursa... It could be suddenly go back to its glory time @ 60 sen.
Nobody know... Just ready yourself for that day to come.

Close eye and buy HUAAN la

Today will marching to RM2.40 again.

price4, you can refer to my previous comment, I have explained what is Paragraph 8.03A, and why I'm sure HUAAN will not being delisted.

This is just like Semenyih land 7-8 years ago, before SP Setia and Ecoworld start to acquire the land there. Last time, Semenyih terrace house 20ft x 75ft maximum can sell for RM250-350k, so the land at the not worth money. But after SP Setia and Ecoword acquired the land, they plan the township, and bring up the selling price from RM250k-300k to RM600-700k.

Why, because last time those land owner are not professional property developer, they don't know how to plan the township, they don't know how to maximise the revenue from the land. They are just sitting on the land, and waiting for Property Developer to acquire it.

Same scenario are reflect in Dutaland.

Most likely the land deal will be on. Actually the piece of land is very good potential, if not IOI Corp last time wont offer RM830mil to acquire it. Many people thought Bplant is paying a high price it, when they compare the revenue and profit generated from the land.

You guys must understand, Dutaland is not a p rofessional planter, they don't know how to manage plantation estate, and their internal control are very very bad. Dutaland has never have intention to become a plantation company, they boss hold the land is just waiting for it to appreciate over the years, and waiting for real plantation company like IOI Corp and BPLANT to acquire it.

I believe after BPLANT acquired the estate from Dutaland, BPLANT can release the potential of the estate. Given the size of 11k hectare, it should be able to generate RM250mil revenue, and based on minimum 15% profit margin, it can turn to RM37.5mil profit per annum, based on current CPO price.

If let said CPO increase by 20% in the next few years, the the profit generated from this land will be baloon to RM60-75mil per annum easily.

Somemore BPLANT is holding so much of cash now, so it must increase its land bank immediately, because land price are appreciate every year, you cant wait until CPO price stand above RM3000 then only acquired, by that time DUtaland will ask for RM900mil d.

Therefore, I think RM750mil is a fair and reasonable price, the deal sure will on.

谁敢抢我的偶像LEO大的钢铁行情的功劳，我跟他死过！！

Redeagle, yup no impact on Revenue, but you will see cash increased by RM66mil.
Cash is important for Digistar because investor are worry about its RM280mil bond.
If Digistar can have RM130-150mil cash on hand, then investor will feel comfortable.

Now everybody like HUAAN..

I believe one weeks before, almost no one know what is "Metallurgical Coke", but now, now at least everyone here know what is Metallurgical Coke.

I believe it will continue up again, until one day you heard the Makcik who selling goreng pisang at roadside also talk about Metallurgical coke, then you can start to sell d.

Wish everyone have a good weekend, bring your family member go to enjoy some good food, watch nice movie, let them feel proud of you.

Accumulate more.... good good!

Based on HUAAN past few day volume, its is very clear that someone with deep pocket is accumulating the share.

High chances it can be the old man KYY, because he has lost his reputation in XINQUAN, and since his EGO are so strong, sure he will find another counter to win back his money and reputation, and this counter must be someone who is very undervalue, related to China, and fulfill his golden rule (revenue and profit consistently grow for 2 quarter).

So, the best candidate who can fulfill all this requirement is HUAAN.

CharlesT, you are so geng. You made KYY cannot sleep for whole night and force to come out another article to clarify that his calculation is wrong.
Faster screenshot and save all the article, if not 2-3 months later, when Xinquan confirm to be delisted, KYY will delete all his post about Xinquan and maybe he will start shout that he has bought HUAAN at 3.5sen, and within 1 months surge up to 35sen, he made 1000% return, while KLCI only up 0.4% for that period...blar.. blar.. blar.

Datuk Wira very smart one, always collect when the share price dip below RM0.16.
669,900 unit x RM0.15 = RM100,335.

Although RM100k is not a big amount for Datuk, but it is still very meaningful, it convince that Datuk himself think that this company is undervalue.

Windcloud, you calculation are excellent!

I strongly believe EPS 0.06 are achievable. Even if only achieve 70%, there is still EPS 0.042 for Q3, and TP can be at least 62 sen.

Please refer to article below, SSTEEL have very great upside potential.

https://skyisthelimitskyisthelimit.blogspot.my/2017/09/southern-steel-q1fy18-eps-estimation.html?showComment=1504711075019#c2952293594385128762

Last month I went to Myanmar, having chance to chat with a Malaysian contractor which based on there for more than 10 years. At that time their steel price convert to RM is around RM3300, I think now September the price should further increase to RM3500-3600 d. Their steel is mainly imported from China.

This conversation proof that what Leoting claiming is correct, now Malaysia have the cheapest steel price compare with other country.

I believe this trend will continue for another few month to 1 year.

apolloang, after reading your comment above, I'm really surprise with your financial knowledge.

Alex Foo, in this type of business, they will normally maintain the Gross Profit Margin, instead of Gross Profit.

For example (not for reference, as I simply quote the price):

When coal price is RMB1000, then sell Coke at RMB1200. So the GP Margin is 20%, and GP is RMB200.

When coal price increase to RMB2000, they will try to maintain the 20% margin, so the selling price for coke will be RMB2400, and Gross profit is RMB400.

Conclusion, when raw material and final product price hike together, the profit are expected to increase, instead of maintain same.

Their Audit is Morison AAC. It is part of the Morison KSi.

Morison KSi is delighted to announce that it has been ranked in the top three in the recent Asia Pacific, Malaysia and South Korea International Accounting Bulletin’s association surveys.

Morison KSi ranked third in terms of total revenue and second in terms of staff in Asia Pacific. In South Korea, Morison KSi ranked first in terms of total revenue and in terms of staff. In Malaysia, Morison KSi ranked first in terms of total revenue and joint third in terms of staff.
The International Accounting Bulletin provides exclusive surveys of accounting firms in leading and emerging markets, delivering over 20 country and regional surveys per year. Morison KSi participates in a large number of these surveys including the annual World Survey which ranks global associations and networks. Congratulations to Morison KSi’s Asia Pacific, Malaysian and South Korean member firms.

Manage to collect 50 lot at RM0.19 just now.

The Edge news reporting is trying to scare investor by highlighting that HUAAN has no regularistion plan and will be subject to delisting.

Q&A Session come again:-

1) Q: you guys need to understand why BURSA put HUAAN under Paragraph 8.03A of Main Market Listing Requirement?
A: This is because on Year 2015-2016, HUAAN has lease it entire factory to 3rd party for 1 years, and this cause HUAAN has no operation revenue for the whole year. According to Paragraph 8.03A, a company must maintain a level of operation in order to continue to listed in Main Market. For HUAAN, since it has no operation revenue at all at the period, that why it fall under the Paragraph 8.03A.

2) Q: Will HUAAN be delisted soon due to non-complied with Para 8.03A?
A: Of course NO la, as HUAAN has take back the factory and re-start its own operation since Feb 2017. Please look at last two quarter report, revenue is up to RM259mil and net profit is RM21mil, there is no reason for Bursa to delist such a good revenue and good profit company.

Hong Leong Invest, why there is no Tech counter and Steel Counter in your picking?

The game is like this, someone must sell for it to continue go up, if no one sell, then it wont be a healthy trend.

My remiser client just sold 100 big lot of Air Asia to buy 1500 big lot HUAAN, and still have extra cash to go book a 7D6N trip to Japan with his wife.

Seem like this Mohd Fahmi Bin Jaes is fully loaded with bullet to hunt for bargain share, and he keep on posted Dow Jones - 234.25 point in all the popular thread.

CharlesT, good analysis, we need fact and figure like what you just did to tear off the mask of the old man.

This old man is really too ego and he always thought the forumer here are idiot.

Many investor here are worry that Huaan Metallurgical Coke Production may not fulfill the China Environment Protection and Pollution Control Rules... Actually, you guys not need to worry. Back to year 2014 & 2015, China Government has already force Huaan to stop its production and force it to upgrade its facility and make sure it complied with the Environment Protection and Pollution Control rules. And since then, the Local Government has done their assessment on Huaan, and Huaan has gotten their approval to continue operate, as Huaan has fulfill all the requirement set by the government.

Below are some old news on Oct 2015 for your reference:-

" The group had previously temporarily shut down the operations of its subsidiary in Linyi city on March 11, in compliance with the local MoEP's directive for all steel mills and coke producers to stop production temporarily until assessment by MoEP is concluded.

The unit's coking ovens have been temporarily shut down in line with the Ministry of Environmental Protection of China (MoEP)'s effort to compel all industries that are perceived to be polluting to meet newly revised environmental protection standards.

In a filing with Bursa Securities today, the group said that Oven number Two, Three and Four are expected to commence commercial production by Oct 17, Nov 1 and Dec 31 respectively.

It added that repair work on Oven number Five is expected to be deferred until industry prospects improve. "

煤焦期价曾有所回调，但是近期山西煤矿安全事故引发焦煤供给下降预期，加上下游钢材(4064, -24.00, -0.59%)需求将步入旺季，煤焦需求良好，支撑焦煤期现价格。

　　今年供给侧改革的重点在钢铁行业，与去年煤炭行业实行276个工作日减量生产政策相比，钢铁行业去产能最大的亮点在于彻底清除了大量低端、无效产能，提高了钢铁行业产能利用率，保证了环保达标、有竞争力的钢厂取得合理的利润。7月25日发改委表示，今年前5个月已完成全年化解过剩钢铁产能任务的84.8%，到6月末地条钢按计划出清。上半年清理地条钢使得高炉使用废钢量有所上升，生铁与粗钢产量差距拉大。

　　地条钢产能出清后钢铁市场维持着供小于求格局，受制于石墨电极供应不足及电炉生产技术落后等原因各钢厂电弧炉新增产能短期无法释放，预计8、9月份钢材市场供应偏紧仍将延续。前期钢材价格与原料价格同步上涨，螺纹利润维持在1000元/吨以上，热卷利润也上升至800元/吨左右。

　　今年下游需求高位运行支撑煤焦价格上涨。统计局最新数据显示，7月全国生铁产量为6207万吨，同比增长5.1%，7月份粗钢产量为7402万吨，同比增长10.3%。由于中频炉去产能后钢材存在一定供应缺口，为了实现利润最大化，今年钢厂纷纷推迟高炉检修时间，在淡季依旧维持满负荷生产，且有个别长年关停高炉计划于8-9月份复产，因此煤焦需求高位运行，支撑了煤焦价格上涨。

　　具体来看，上周末全国钢厂高炉开工率略有上升，近期全国高炉开工率偏高水平运行，加上有高炉计划复产，近期煤焦需求良好，华北地区部分焦化企业正在酝酿第六轮提涨。钢厂及独立焦化企业维持高开工率加快了炼焦煤消耗速度，目前华北地区大部分独立焦化企业利润已经上升至300元/吨上方，采购炼焦煤热情高涨，目前独立焦化企业炼焦煤库存已明显高于历史同期水平。

　　十九大之前安全检查加强对煤炭的供应有较大影响。从产量数据来看，7月原煤产量2.94亿吨，同比增长8.5%，7月焦炭(2297, 0.00, 0.00%)产量3728万吨，同比增长0.1%。与生铁产量增速相比，焦炭供应存在缺口，而煤炭企业因执行330个工作日，产量较去年同期有所提高，但与14、15年同期相比，原煤产量同比是下降的。经历了去年的去库存后煤炭企业经营状况明显好转，生产积极性较高，不过随着十九大的临近，安全检查趋严，这使得煤炭企业对加快生产节奏较为谨慎。

　　综上所述，由于下游钢厂高利润背景下煤焦需求较为理想，加上安全、环保等因素对煤焦供给有一定影响，随着钢材旺季的到来煤焦需求有望阶段性上升，在取暖季“2+26”城市钢厂大规模限产前焦炭、焦煤或将维持偏紧格局。因此，虽短期调整，我们认为煤焦期货有望继续保持强势。

ilovehits, thank for your compliment.

Basically I just want to let everyone know that HUAAN is not a goreng-goreng counter. The share price go up is because the company is involving in the Metallurgical Coke business, where the Metal Coke price has surge a lot recently, and this will bring an extraordinary profit margin to HUAAN.

So, this is a undervalue share with the right theme (Raw material for Steel Production) and predictable profit (We can check the Metal Coke price everyday).

rRepost the Q&A i prepared last weeks:-


Q&A session:-

1) Q: What businesss HUAAN is doing?
A: HUANN is producing Metallurgical Coke.

2) Q: What is Metallurgical Coke?
A: Metallurgical Coke is one of the key material used in Steel Production, especially the Blast Furnace.

3) Q: Why HUAAN share price increase 300% in one day?
A: Price increase is because HUANN posted a very very excellence profit, so market realised that this counter has been undervalued.

4) Q: Why HUANN is lost making for the past few year, then suddenly back to Profit?
A: For the past few years, CHINA has too much excess capacity for steel, and this cause the steel price very very low for the whole world. When steel price low, every raw material that related to steel are not doing well, such as coal, iron ore, as well as metallurgical coke. When the selling price of metallurgical coke is low, then all the producer including HUAAN are facing loss. However, situation has change since year, CHINA government start to control the environment pollution, and cut the capacity of steel production. When steel supply decrease, steel price surge up. When steel price up, every raw material related to steel production go up as well. That why suddenly HUAAN make huge profit.

5) Q: I checked the past year record, there is no revenue generated by HUAAN, why?
A: Last year, as the China Government has tighten the rules on environment control, and Metallurgical Coke price is at multiple year low, HUAAN has no choice to make a decision to lease out its production site and facility for 1 years @ RM12mil. This is why there is totally no revenue generated by HUAAN on last year. The lease was expired on Feb'17, and HUAAN has take back factory and production site, that why you start to see it generate revenue start from Mar'17.

6) Q: Is it too late to invest in HUAAN now, since its share price has go up 300%.
A: If you compare the share price, yes, it is too late and too dangerous to jump in now. However, if you look at its profit, you will realised that it is still very undervalue. For example, it quarter profit is 21mil, and now its market cap is only RM174mil. If we assume HUAAN has acheived annual profit of RM75mil, then its PE is only 3 times.

7) Q: It is possible to achieve RM75mil annual profit?
A: Yes, very likely based on current steel price and metallurgical coke price. If you refer to China Stock Market, many counter that related to Metallurgical Coke has their profit increased few fold, and their share price are also increase few fold already.

China AM: Steel futures surge on fire at Bengang BF

China’s steel futures moved up sharply in the morning trading session on Friday September 1 following a fire at Benxi Iron & Steel (Bengang)'s No 1 blast furnace.

Futures closing prices – morning session Shanghai Futures Exchange January rebar: 4,023 yuan ($610) per tonne, up 96 yuan per tonne January hot rolled coil: 4,204 yuan per tonne, up 138 yuan per tonne Dalian Commodity Exchange January iron ore: 580.50 yuan per tonne, up 6.50 yuan per tonne January coking coal: 1,440 yuan per tonne, down 2 yuan per tonne Raw materials Metal Bulletin’s 62% Fe Iron Ore Index stood at $78.91 per tonne cfr China on Thursday August 31, up $2.83 per tonne from a...

Two Chinese steel majors have raised their purchase prices for metallurgical coke by 100 yuan ($15) per tonne, effective Monday September 4 onwards, Metal Bulletin has learned.

Shandong province’s Rizhao Iron & Steel is now paying 2,250 yuan ($343) per tonne for materials with 58% coke strength after reaction (CSR) and 0.65% sulphur, and 2,200 yuan per tonne for those...

Firehawk, you may refer to article below:-

http://www.thestar.com.my/business/business-news/2015/10/22/ram-ratings-reaffirms-aa1-rating-of-indera-persada-bonds/

firehawk, for your information, when Digistar secured this project from the Government, it is not only about the construction of the building, it also included supply of the IT equipment for the entire building, which is worth RM66 mil.

Based on their initial agreement, Government should pay Digistar a lump sum of RM66mil upon completed of the project. This is a one-off payment in addition to the monthly RM3 mil leasing fee.

During the AGM on early this year, Datuk Lee mentioned that the reason why Government delay the RM66 mil is because there are some high tech equipment that may contain radioactive, so JKR is in the midst to arrange for Radioactive Professional to test and certified the machine, that why it cause delay of the payment.

If you refer to Digistar's Balance Sheet, you can see there is always a RM60mil ++ trade receivable for the past few quarter, this is exactly the RM66 mil than pending for Government to pay, and if everything as per planning, Digistar should have already received the RM66 mil in July'17.

Give SSTEEL some time (1-2 week), it will go back to RM2.20 level.
Then, if steel price continue to stay high by end of September, then SSTEEL will continue climb to RM2.50 at least.

firehawk, you can refer to this news:-

http://www.theedgemarkets.com/article/digistar-consider-dividend-payout-upon-receiving-rm66m

While Malaysia are celebrating its long holiday, the Metallurgical coke price in China increase again this few day.

I expect this coming quarter revenue will be above RM300 mil, and Net Profit will be above RM30mil, EPS will be around 2.8sen.

For me, the accumulated losses is not a big issue, as I'm not expecting this type of company to distribute dividend in the next 2-3 years. For me, the biggest concern is:-

This Is a CHINA company, so I can't 100% trust their accounting figure, so I have set a discounted target price of RM0.40 only (my original target price is RM1.00).

Hi paperplane2016, as mentioned above, HUAAN has suffered losses last time is because the industry is not doing well and the Metalurgical coke price are too low until there is no way to cover the cost of production. This is similar to Malaysia steel industry few years ago, especially company like LIONIND where it suffered so many losses every quarter.

However, when the Industry start to change, LIONIND start to posted profit result, and its share price increase from 28 sen to 125 sen. I believe same story will be apply on HUAAN, when its Metalurgical Coke industries start to uptrend, its profitability and share will move together as well.

Remember, HUANN share price used to be at RM1.70, and now it only RM0.155, so please don;t think that RM0.155 is very high.

Q&A session:-

1) Q: What businesss HUAAN is doing?
A: HUANN is producing Metallurgical Coke.

2) Q: What is Metallurgical Coke?
A: Metallurgical Coke is one of the key material used in Steel Production, especially the Blast Furnace.

3) Q: Why HUAAN share price increase 300% in one day?
A: Price increase is because HUANN posted a very very excellence profit, so market realised that this counter has been undervalued.

4) Q: Why HUANN is lost making for the past few year, then suddenly back to Profit?
A: For the past few years, CHINA has too much excess capacity for steel, and this cause the steel price very very low for the whole world. When steel price low, every raw material that related to steel are not doing well, such as coal, iron ore, as well as metallurgical coke. When the selling price of metallurgical coke is low, then all the producer including HUAAN are facing loss. However, situation has change since year, CHINA government start to control the environment pollution, and cut the capacity of steel production. When steel supply decrease, steel price surge up. When steel price up, every raw material related to steel production go up as well. That why suddenly HUAAN make huge profit.

5) Q: I checked the past year record, there is no revenue generated by HUAAN, why?
A: Last year, as the China Government has tighten the rules on environment control, and Metallurgical Coke price is at multiple year low, HUAAN has no choice to make a decision to lease out its production site and facility for 1 years @ RM12mil. This is why there is totally no revenue generated by HUAAN on last year. The lease was expired on Feb'17, and HUAAN has take back factory and production site, that why you start to see it generate revenue start from Mar'17.

6) Q: Is it too late to invest in HUAAN now, since its share price has go up 300%.
A: If you compare the share price, yes, it is too late and too dangerous to jump in now. However, if you look at its profit, you will realised that it is still very undervalue. For example, it quarter profit is 21mil, and now its market cap is only RM174mil. If we assume HUAAN has acheived annual profit of RM75mil, then its PE is only 3 times.

7) Q: It is possible to achieve RM75mil annual profit?
A: Yes, very likely based on current steel price and metallurgical coke price. If you refer to China Stock Market, many counter that related to Metallurgical Coke has their profit increased few fold, and their share price are also increase few fold already.

Some old news to share:-

華安國際（HUAAN,2739,主板工業產品組）這只股的主要業務是甚麼？它的財政報告好像不差，為何股價會那麼低？現在是不是買進時機？

答：（二）華安國際主要業務涉足生產治金焦炭，後者為生產鋼鐵的主要原料之一，其焦炭廠是山東省最大的焦炭廠。它也生產其他副產品如柏油、原苯、硫酸及煤氣等。

這間公司是有利可圖，不過，由於全球經濟不景氣，包括鋼鐵業也受到嚴重打擊，影響鋼鐵原料的需求、價格、及賺幅等，可能是導至其股價走低的原因之一。

截至去年9月為止，這間公司沒有債務，手中尚握有6500萬令吉的現金。

截至2008年9月30日為止，這間公司首9個月的淨利為8419萬5000令吉，比前期的9000零8萬1000令吉略降6.53%。營業額為12億2215萬7000令吉，比前期的6億1935萬8000令吉，激漲97.33%。

注意此公司即將出爐的最新業績表現，料更全面反映全球經濟不景，對業務的影響程度，衡量後，以為是否買進作參考。

Hua-An Group through its wholly owned subsidiary, Linyi Yehua Coking Co., Ltd. is principally involved in the production and sale of metallurgical coke and its by-products namely coal gas, tar, ammonia sulfate, crude benzene, coal slime and middlings. Metallurgical coke contributes 79% and its by-products contribute 21% to our revenue.

Hua-An Group main product metallurgical coke is a critical raw material used as energy source for the manufacturing of steel. The current production capacity of metallurgical coke is 1.8 million tones per annum.
Hua-An Group has its own coal washing facility which successfully commissioned on 1 May 2007. Previously Hua-An Group bought pre-washed coal (more expensive) from raw material supplier and since May 2007 we buy raw coal (which is cheaper) and wash them by our own coal washing facility which has a designed capacity of washing 2.4 million tones of raw coal per annum. The cost saving for coal washing process is approximately 5%.

Hua-An Group single production plant is located at Shen Quan Zhuang Industrial Park, Luo Zhuang District, Linyi City, Shandong Province with a build-up area of 319,014 sqm.

Hua-An Group has a well-trained workforce of 1,500 workers.

Hua-An Group obtained ISO 9001:2000 certification for product quality since 3 April 2006.

@edward, thanks for the update. Hope your wife are okay.

A world class blast furnace operation demands the highest quality of raw materials, operation, and operators. Coke is the most important raw material fed into the blast furnace in terms of its effect on blast furnace operation and hot metal quality. A high quality coke should be able to support a smooth descent of the blast furnace burden with as little degradation as possible while providing the lowest amount of impurities, highest thermal energy, highest metal reduction, and optimum permeability for the flow of gaseous and molten products. Introduction of high quality coke to a blast furnace will result in lower coke rate, higher productivity and lower hot metal cost.

SOUTHERN STEEL is using Electric Arc or Blast Furnace?

Monday will rise another 10 sen.

Look at the Net Profit, it is RM21mil.
Look at the Market Cap it is only RM157mil.

You tell me, where to find this kind of investment?

This is definitely the 2nd HengYuan in the making.

Later KYY come to campur tangan again.

Don't worry, it will move some how.

It will be the second Prestar.

This is nothing related to politic, this rise is purely because people realise the potential of Huann, their business, the current raw material theme, and impressed with its quarter result.

Calling Leoting, urgent!
While we all focus on increase trend of Steel Price, we have omitted the increase trend Coke price.

Look at Huann result, I believe this is not a simply goreng-goreng.
This is similar to last year where steel price start moving, and Lionind start moving from 30sen to now RM1.10.

Maybe we all should go to studying about Coke industry, then come out some detailed analysis during this long holiday.