PETALING JAYA: Affin Bank Bhd (pic) is on track to achieve its financial year 2022 (FY22) targets, underpinned by the sale of the company’s stakes in its business units.

The disposals would help to fuel its key banking division’s endeavours despite headwinds.

The bank planned to sell its stake in Affin Hwang Asset Management Bhd (AHAM), which is expected to be completed by the end of the month. This would also raise the bank’s common equity Tier-1 (CET1) capital ratio.


It received the green light from its shareholders in May to proceed with the sale of its 63% stake in AHAM held by Affin Hwang Investment Bank Bhd to Starlight Asset Sdn Bhd. The sale would unlock RM1.54bil in cash, which would boost its organic growth in the banking division.

The bank has also obtained the approval from the Finance Ministry on the same month to dispose of 21% of its equity interest in AXA Affin Life Insurance Bhd (AALI) and 2.95% stake in AXA Affin General Insurance Bhd (AAGI) to Generali Asia N.V.

Currently, Affin owns 51% in AALI and 49.95% in AAGI. Affin has agreed for the general insurance business of AAGI and MPI Generali Insurans Bhd (MPIG) to be merged under AAGI, whereby AAGI would acquire certain assets and liabilities of MPIG via a business transfer to create an enlarged company, subject to the approval of Bank Negara.

A new local company (newco) would be incorporated to hold all of the shares in AALI and AAGI. Affin would, in turn, be holding 30% equity interest in the newco, with Generali holding the remaining 70% equity interest in the newco.



Kenanga Research said the company would ensure that the working capital targets were sufficiently fulfilled before it considered the quantum of special dividends that might be paid.

Of the RM1.54bil proceeds, the research house said it estimates a payout of 25% to shareholders, which could translate to about 18 sen in special dividends or 9% yield while still keeping CET1 level at around 15.8%.

The sale of stakes in AALI and AAGI to the joint venture (JV) with Generali (estimated to be completed end of next month) would provide additional RM155mil cash while still being earnings accretive as an associate.

That said, the operational integration of this JV is expected to only materialise by the first quarter of next year.

Post-merger, the combined gross written premium is expected to stand at about RM2bil, behind market leader Allianz’s RM2.35bil book.

There could be a two-pronged growth enjoyed with Generali’s non-cannibalistic product offerings on top of operational synergies from the merged entity, uplifting the segment’s overall contribution to beat its historical 5% of group earnings, going forward.

The group remained confident that its 12% loans growth (the highest in the industry) target for FY22 is attainable.

Kenanga, which maintained its “outperform” stance, said risks to its call included higher-than-expected margin squeeze, lower-than-expected loans growth, worse-than-expected deterioration in asset quality, slowdown in capital market activities, unfavourable currency fluctuations and changes to the overnight policy rate.

Yes but it is bait to justify the trap mah!

Get out b4 too late mah!

Posted by CharlesT > 16 seconds ago | Report Abuse

At least now HY gives RM0.10 div....100% higher than 2019....

Got improvement lah

A potential kon....is a worthless to investors loh!
Just leave hengyuan alone mah!
Sell b4 too late loh!

Posted by qqq3333 > 16 seconds ago | Report Abuse

but I disagree HY will be worthless ......................... HY still serve its corporate interest , except the corporate interest may not be minority shareholders in Malaysia. ............... in China those teapot refineries like HY are subject to a lot of controls so it makes sense for them to have a refinery in Malaysia ............. and can service China when necessary.

I think corporate interest is more about serving China then about share price or minority share holders. ................ and transfer pricing is surely a major consistent problem.

Its cashflow very strong mah!
The borrowing is reducing sharply & the dividend payout are increasing loh!

I think below Rm 1.07 is quite safe to enter loh!

The point is Hengyuan has Rm 2.8 billion loan to deal with besides the more than the Rm 1 billion in losses mah!

Posted by qqq3333 > 44 seconds ago | Report Abuse

sslee...............hedging gains, if any ,will not drive HY higher than fair value ..................... professionals are interested in its fair value of the sustainable operations.................................................................................. and when things turn south, it never rains but it pours...............die lo.

Post a Comment

"Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?"

There is no justfication Hengyuan valuation should be supported due to wrongful reporting of its profit & huge losses of its derivative mah!

Let Raider summarised hengyuan position loh!

1.HRC Q2 for 30-6-2022
2. HRC 6mts 30-6-2022

1a.Profit/{loss} attributable to shareholder............Rm 667m
1b. Profit/{loss? comprehensive to shareholder...Rm {412}m
number of shares Rm 300m
1a. Eps Rm 2.22
1b Eps Rm {1.37}

Culmulative 6m
2a, Profit attributable to shareholders..... Rm 714m
2b. Profit comprehensive income shareholders Rm (475m}

2a, EPS Rm Rm 2.38
2b. Eps Rm {1.58}

Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?

But hengyuan do not loh! It keep the hedging loss as no impact to EPS loh!

If we standardised the treatment like Petron....Hengyuan will be reporting huge losses loh!

Rightfully Hedging losses should flow thru P&L mah!

Thus Hengyuan performance appear very bad compare to Petron loh!

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

"Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?"

There is no justfication Hengyuan valuation should be supported due to wrongful reporting of its profit & huge losses of its derivative mah!

Let Raider summarised hengyuan position loh!

1.HRC Q2 for 30-6-2022
2. HRC 6mts 30-6-2022

1a.Profit/{loss} attributable to shareholder............Rm 667m
1b. Profit/{loss? comprehensive to shareholder...Rm {412}m
number of shares Rm 300m
1a. Eps Rm 2.22
1b Eps Rm {1.37}

Culmulative 6m
2a, Profit attributable to shareholders..... Rm 714m
2b. Profit comprehensive income shareholders Rm (475m}

2a, EPS Rm Rm 2.38
2b. Eps Rm {1.58}

Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?

But hengyuan do not loh! It keep the hedging loss as no impact to EPS loh!

If we standardised the treatment like Petron....Hengyuan will be reporting huge losses loh!

Rightfully Hedging losses should flow thru P&L mah!

Thus Hengyuan performance appear very bad compare to Petron loh!

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

"Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?"

There is no justfication Hengyuan valuation should be supported due to wrongful reporting of its profit & huge losses of its derivative mah!

Let Raider summarised hengyuan position loh!

1.HRC Q2 for 30-6-2022
2. HRC 6mts 30-6-2022

1a.Profit/{loss} attributable to shareholder............Rm 667m
1b. Profit/{loss? comprehensive to shareholder...Rm {412}m
number of shares Rm 300m
1a. Eps Rm 2.22
1b Eps Rm {1.37}

Culmulative 6m
2a, Profit attributable to shareholders..... Rm 714m
2b. Profit comprehensive income shareholders Rm (475m}

2a, EPS Rm Rm 2.38
2b. Eps Rm {1.58}

Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?

But hengyuan do not loh! It keep the hedging loss as no impact to EPS loh!

If we standardised the treatment like Petron....Hengyuan will be reporting huge losses loh!

Rightfully Hedging losses should flow thru P&L mah!

Thus Hengyuan performance appear very bad compare to Petron loh!

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

"Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?"

There is no justfication Hengyuan valuation should be supported due to wrongful reporting of its profit & huge losses of its derivative mah!

Let Raider summarised hengyuan position loh!

1.HRC Q2 for 30-6-2022
2. HRC 6mts 30-6-2022

1a.Profit/{loss} attributable to shareholder............Rm 667m
1b. Profit/{loss? comprehensive to shareholder...Rm {412}m
number of shares Rm 300m
1a. Eps Rm 2.22
1b Eps Rm {1.37}

Culmulative 6m
2a, Profit attributable to shareholders..... Rm 714m
2b. Profit comprehensive income shareholders Rm (475m}

2a, EPS Rm Rm 2.38
2b. Eps Rm {1.58}

Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!
Petron reported a positive position after flowing thru its hedging losses to the P&L top line, this should be what hedging operation should be all about by smoothing out its profitability but not in hengyuan case with losses run into billions ?

But hengyuan do not loh! It keep the hedging loss as no impact to EPS loh!

If we standardised the treatment like Petron....Hengyuan will be reporting huge losses loh!

Rightfully Hedging losses should flow thru P&L mah!

Thus Hengyuan performance appear very bad compare to Petron loh!

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

Just look at the balance sheet lah!
Bcos of the hedging losses.....Rm 2.8 borrowing are added to hengyuan debts mah!
This is debt is equivalent to Rm 9.80 per hengyuan share loh!

Can't u see the danger looming leh ??

Btw very long term fixed price contract exceeding 3 yrs is dangerous mah! SSLEE boss in the palm olein industry....refuse to write such a contract loh....why ? It is common sense mah!

Posted by Sslee > 1 hour ago | Report Abuse

HRC do a big volume long hedging contracts.

Petronm with Refinery + marketing most likely just do a one month commodity swap to protect the inventories value and a small volume of margin swap contracts
Note: It will take one month (crude purchase-delivery- processing- finished product- sold)

And petronm used a different accounting standard where the profit before tax already included in derivatives realised and unrealised gain/loss.

So if Petronm Q2 you take out the unrealised derivaties loss of RM 166,799,000.
The PBT should be RM 240,671,000 + RM 166,799,000.

By the way the unrealised derivatives loss of RM 166,799,00O is added back to operating cash flow.
YTD 2022 the Petron M operating profit before changes in working capital is RM 637,742,000.

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

Memang betul mah!
When crack spread was trending up USD 20 to USD 30....these probablity & sslee are singing praises on Hengyuan, but when Crack spread was negative at USD 0.5.....they try to disown the arguement...that Crack Spread is important mah!

This is hypocrisy & double standard mah! Lu tau boh ?

Posted by UlarSawa > 2 hours ago | Report Abuse

Wrong hedging will cause the company suffer huge losses leh. If the mgmt incompetent suffering losses from hedging and the shareholders suffer leh. Just like Nick Leeson caused Barings Bank shareholders lost everything when declared banklap leh. It is a very serious case and someone need to answer to the shareholders. Take responsibility and at least sack the person that caused the derivative losses leh. Simple as that lor. Who made the decision one should resign and take responsibility mah. Now causing saham turun double digits leh. A lot of losses for shareholders to bear leh. Minority also shareholders mah. Why SSLee takda write to the CEO and cakap I3 punya shareholders very unhappy pasal saham takda limit up but turun double digits after released the QR leh. Haiyoh. Correct?

Posted by UlarSawa > 2 hours ago | Report Abuse

Uncle Koon only highlighted the crackspread same as promoter highlighted the crackspread when hit record high mah. Same same cerita crackspread leh.Up you all can blow water. Down Uncle Koon also can blow water mah. You all teach Uncle Koon one mah. Cakap he know nothing about refinery leh. Haiyoh. Correct?

No lah!
Raider do not lose money on Hengyuan mah!
The main point.....is raider realized it is mistake....to promote hengyuan heavily loh! (just like raider realized netx got corporate governance issue, despite making money raider refuse netx mah.....this is good practise mah!}
Hengyuan owner got corporate governance issue...it is not like, what u think mah!

The risk are extremely high loh!
Hengyuan borrowing & speculative hedging position exceed Rm 2.8b and its hedging losses exceed Rm 1 billion mah!

Btw....HY claim is hedging...is it really hedging ah ?
It could be excessive gambling loh!

The most dangerous part is HY consistent loss in its hedging endeavor mah!

Lu tau boh ?

Posted by Ahahah > 2 hours ago | Report Abuse

@stockraider you promoted so strongly on HY in year 2017, you must lost a lot of money through this counter.
Posted by Ahahah > 2 hours ago | Report Abuse

@stockraider you promoted so strongly on HY in year 2017, you must lost a lot of money through this counter.

This is theoretical could be correctloh!

But raider highlight this red flags...it is unlikely due to coincidence loh!

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!



Posted by Sslee > 2 minutes ago | Report Abuse

Stockraider,
Do you understand what I try to explain below on refining margin swap contracts?

If you use only Mogas92 crack spread: USD 31.58
Equation:
V x A=226,945,000 or V=226,945,000/A
V x (31.58 – A) = 1,490,267,000/4.397

226,945,000 x (31.58 – A) = 338,928,133 x A
7,166,923,100= (338,928,113 + 226,945,000) x A
A= 7,166,923,100/565,873,133
A= 12.665
V=226,945,000/12.665
V= 17,918,718

What I trying to say in above example are:
Volume of outstanding refining margin swap contract is 17,918,718 barrels
Average outstanding refining margin hedged is USD 12.665 per barrel
And the spot refining mogas92 margin on 30/6/2022 is USD 31.58 per barrel

Hence your outstanging 17,918,718 at your average refining hedged at USD 12.665 per barrel will recorded a mark to market (as on 30/6/2022 is USD 31.58 per barrel) fair value loss/unrealised loss of 17,918,718 x (31.58- 12.665) = USD 1,490,267,000/4.398.

If you assume at the end of Q3, 6 million barrels mature and average realised refining margin in Q3 is USD 16 per barrel and at 30/9/2022 the spot Mogas92 refining margin is USD 10

Thus your loss on this 6 million barrels mature refining margin swap contracts USD 6 million x (16- 12.765)
But your physical gross profit is USD 6 million X 16.
Hence your net gross profit is USD 6 million X [ 16 + (12.765 - 16) ] = USD 6 million X 12.765.
The acceptable margin per barrel when HRC make this refining margin swap at USD 12.765.

And your balance refining margin swap (17,918,718 - 6,000,000) barrel mark to market (as on 30/9/2022 spot Mogas92 refining margin USD 10 per barrel) fair value gain is USD 11,918,718 x (12.765 -10).
Note once the spot refining margin drop below your hedge refining margin of USD 12.765 your outstanding refining margin swap contracts will have mark to market fair value gain

As 6 million mature on Q3 HRC might have enter another X million barrel refining margin swap at USD Y per barrel acceptable to HRC

Hope above will help.

U ask your palmoil boss who is involve in olein....is he willing to write fixed contract on palm olein for more than 3 years long ??

Posted by Sslee > 4 minutes ago | Report Abuse

Stockraider,
It just mean the refining margin swap contracts can be as long as 3 years.

I will be very happy if in Q2 HRC hedge the refining margin for 3 year at USD 12-25 per barrel.

Correction!

Favorite kon counter loh!

Posted by qqq3333 > 1 minute ago | Report Abuse

jaks and sendai are kyy favorite counters at a certain point in time........................................ride it well as I do make money..............ride it wrong lose money, what more to say?

If u want to kon............u fixed long dated hedge loh!

Easy to capitalise opportunity to kon....with long dated hedge mah!

Btw....we do not know....who is the other counter party of the hedger....it could be unknown...party....who have no financial means....if the hedge go against it mah!


Posted by i3lurker > 31 seconds ago | Report Abuse

Raider

for fixed term Futures Hedges, buy early is cheaper sometimes not always
Market Maker fixed price cheaper coz you pay more swap rates

so at report date its unrealized gain/loss pertaining to future periods as long as possible 10 years later.
[you wanna buy, Market Makers will give you a Quote]

putting inside current year PnL will be fake results since its 10 years later punya effects

Correctloh....!!

Raider also pointed out JAKS is a kon mah!

Posted by Sslee > 28 seconds ago | Report Abuse

By the way all the JAKS promoters are right in the Vietnam power plant earning projection.

But they are damn wrong on ALP and management

Raider already explain loh!

I m shocked Hengyuan has hedging of more than 3 yrs long....what type of coockkeed hedging hengyuan is doing leh ?

Raider already explain loh!

I m shocked Hengyuan has hedging of more than 3 yrs long....what type of coockkeed hedging hengyuan is doing leh ?

Raider already explain loh!

I m shocked Hengyuan has hedging of more than 3 yrs long....what type of coockkeed hedging hengyuan is doing leh ?

Rubbish loh!

Hedging is for smoothing out the Profit & Loss of the operations mah!

Thus rightfully the hedging profit or loss should flow thru P&L loh!

Just like what Petron has done mah!

Lu tau boh ??

I m shocked Hengyuan has hedging of more than 3 yrs long....what type of coockkeed hedging hengyuan is doing leh ?

Posted by i3lurker > 36 seconds ago | Report Abuse

my understanding is that

realised hedging losses flow thro PnL as part of purchase or sales where applicable
realised gambling hedging done unrelated/unconnected/unidentifiable to specific purchases or sales will go to a one liner that is part of PnL [I would call this gambling profits/losses, cough cough]
unrealised hedging losses of all types flow thro Comprehensive Income

Already highlighted to U...Hengyuan people cannot be trusted,,,,still refuse to accept ah ?
The most question for those people who invest in hengyuan is to ask whether the derivative executed are actually a faked device to siphon money from the company loh ?


The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

Posted by probability > 43 seconds ago | Report Abuse

well said Zhuge..

this people like raider is the root cause many valuable people like Rabbit2 dont come to i3 often

Posted by probability > 43 seconds ago | Report Abuse

well said Zhuge..

this people like raider is the root cause many valuable people like Rabbit2 dont come to i3 often

Already highlighted to U...Hengyuan people cannot be trusted,,,,still refuse to accept ah ?

The most question for those people who invest in hengyuan is to ask whether the derivative executed are actually a faked device to siphon money from the company loh ?


The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

Posted by probability > 43 seconds ago | Report Abuse

well said Zhuge..

this people like raider is the root cause many valuable people like Rabbit2 dont come to i3 often

U kon innocent people....still want to bulllshiitt ah ?

Posted by Zhuge_Liang > 35 seconds ago | Report Abuse

qqq3 fxxk you.
Another shameless liar.
Continue to tell lies after lies.
No wonder you are beaten by a gang in Bangsar because of your bad mouth.
You are cursed and the gang should beat you to death.
You are an useless dead wood in this world.
No value at all.

The problem is rabbit only know audit but he cannot spot kon loh!
Posted by Zhuge_Liang > 4 minutes ago | Report Abuse

Rabbit2 is a qualified accountant.
He has the experience to audit a refinery company.
He knows hedging rules well.
Unlike an office boy, continue to tell lies here.
This office boy lost a lot of money on Hengyuan in 2017 until he hid himself at Pudu market.
Bullshit and twist the story to suit him.
Real shameless.

Raider is expert in spotting kon mah!

Just look at serba....how raider sound the alert leh ?

Posted by Sslee > 16 seconds ago | Report Abuse

Stockraider,
If you are not pepare to learn and understand the financial report but just follow the herd and make up your own imaginary story you won't go far in investing.

Petron future performance as explain below loh!

Very important u should ask what is the current crack spread as at 2-9-2022?

sept 2022- USD 0.80
0ct 2022 - USD (0.70}
Nov 2022- USD (0.65}
Dec 2022= USD {0.18}

From the above trend the future crack spread trend is highly unattractive with low yield & negative yield loh!

A reasonable yield crack spread should be around USD 4 mah!

This mean Petron future 12 mths for 31-12-2022 performance will not exceed profit of Rm 289m or EPS Rm 1.07!

Whereas HRC 31-12-2022 future 12 mths performance will not report better result of loss rm 475m or loss of Rm 1.58 per share loh!

Posted by tehka > 1 minute ago | Report Abuse

How is your precious petronM doing since Hengyuan QR release? Go up a lot?

There is no justfication Hengyuan valuation should be supported due to wrongful reporting of its profit & huge losses of its derivative mah!

Let Raider summarised hengyuan position loh!

1.HRC Q2 for 30-6-2022
2. HRC 6mts 30-6-2022

1a.Profit/{loss} attributable to shareholder............Rm 667m
1b. Profit/{loss? comprehensive to shareholder...Rm {412}m
number of shares Rm 300m
1a. Eps Rm 2.22
1b Eps Rm {1.37}

Culmulative 6m
2a, Profit attributable to shareholders..... Rm 714m
2b. Profit comprehensive income shareholders Rm (475m}

2a, EPS Rm Rm 2.38
2b. Eps Rm {1.58}

Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!

But hengyuan do not loh! It keep the hedging loss as no impact to EPS loh!

If we standardised the treatment like Petron....Hengyuan will be reporting huge losses loh!

Rightfully Hedging losses should flow thru P&L mah!

Thus Hengyuan performance appear very bad compare to Petron loh!

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

There is no justfication Hengyuan valuation should be supported due to wrongful reporting of its profit & huge losses of its derivative mah!

Let Raider summarised hengyuan position loh!

1.HRC Q2 for 30-6-2022
2. HRC 6mts 30-6-2022

1a.Profit/{loss} attributable to shareholder............Rm 667m
1b. Profit/{loss? comprehensive to shareholder...Rm {412}m
number of shares Rm 300m
1a. Eps Rm 2.22
1b Eps Rm {1.37}

Culmulative 6m
2a, Profit attributable to shareholders..... Rm 714m
2b. Profit comprehensive income shareholders Rm (475m}

2a, EPS Rm Rm 2.38
2b. Eps Rm {1.58}

Notice that Petron Eps attributable to shareholders & Petron comprehensive income to shareholders are the same bcos Petron treat Hedging gain & loss must flow thru the P&L which is the rightful treatment loh!

But hengyuan do not loh! It keep the hedging loss as no impact to EPS loh!

If we standardised the treatment like Petron....Hengyuan will be reporting huge losses loh!

Rightfully Hedging losses should flow thru P&L mah!

Thus Hengyuan performance appear very bad compare to Petron loh!

The most danger question is the hedging instrument is completely unrelated to business hedging but it is a device instrument to siphon money from hengyuan loh!

The red flags can be seen by;

1. Many qtr of hedging losses loh!
2. Very suspicious long dated of the hedging instrument loh!
3. Extremely large hedging value has been contracted mah!
4. Extremely Huge hedging losses incurred todate loh!

If the above suspicion is proven true.....then hengyuan will eventually be worthless just like Serba loh!

Yes go & make your money quietly...do not kon loh!

The fact Hengyuan crash....speak volumes mah!

Yes go & make your money quietly...do not kon loh!

Just get them to speed up the court case loh!

Do not kon the naive mah!

Like that don know meh ?

U just goggle & look at the latest CME Mogas 92 crack spread mah!

Posted by Sslee > 12 seconds ago | Report Abuse

Now stockraider say he can see KYY punya Brent Crack Spread in next 4 months

sept 2022- USD 0.80
0ct 2022 - USD (0.70}
Nov 2022- USD (0.65}
Dec 2022= USD {0.18}

I think the future negative crack spread tell u something meaningful mah!

Correctloh....!

With Hengyuan languishing at Rm 475m losses as at 30-6-2022....very hard for it to catch up with negative crack spread loh!

Very important u should ask what is the current crack spread as at 2-9-2022?

sept 2022- USD 0.80
0ct 2022 - USD (0.70}
Nov 2022- USD (0.65}
Dec 2022= USD {0.18}

From the above trend the future crack spread trend is highly unattractive with low yield & negative yield loh!

A reasonable yield crack spread should be around USD 4 mah!

Posted by Sslee > 28 seconds ago | Report Abuse

Stockraider,
You might as well tell me what will be Toto next draw number.

Better sell & convert to Bland or Bcorp mother loh!

JUST look at negative crack spread for the 4 mths no hope mah!

PAS best hope is to work with PN loh!

Correctloh....!

With Hengyuan languishing at Rm 475m losses as at 30-6-2022....very hard for it to catch up with negative crack spread loh!

Posted by MoneyMakers > 9 minutes ago | Report Abuse

Walao Oct/Nov/Dec future crack all alrdy turn (-)

Totally collapse leh

Correctloh....!

With Hengyuan languishing at Rm 475m losses as at 30-6-2022....very hard for it to catch up with negative crack spread loh!

Posted by MoneyMakers > 9 minutes ago | Report Abuse

Walao Oct/Nov/Dec future crack all alrdy turn (-)

Totally collapse leh

Correctloh....!

With Hengyuan languishing at Rm 475m losses as at 30-6-2022....very hard for it to catch up with negative crack spread loh!

Posted by MoneyMakers > 9 minutes ago | Report Abuse

Walao Oct/Nov/Dec future crack all alrdy turn (-)

Totally collapse leh

Correctloh....!

With Hengyuan languishing at Rm 475m losses as at 30-6-2022....very hard for it to catch up with negative crack spread loh!

Posted by MoneyMakers > 9 minutes ago | Report Abuse

Walao Oct/Nov/Dec future crack all alrdy turn (-)

Totally collapse leh

The best is to liquidate ICAP loh....u will get the best return mah!

U need to ask whether the dividend propose sustainable or not going fwd loh ?

Any one willing to lend to SME....at reasonable rates !.....The SME will be interested loh!

Not necessary Digital bank loh!

Very positive mah!
Major shareholder still buying back loh!