Huaan has moved RM1.00 in one month before in 2007 when the revenue and profit is the same as what has been annouced last week. So very capable to repeat.
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.
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).
Posted by apolloang > Sep 5, 2017 09:09 AM | Report Abuse
just sold at 19.5cts......bye bye huaan,i pass my baton to pang sai
TODAY 7 EARLY 8 EARLY, THIS CONMAN APOLLO COMPLETED SOLD ALL HUAAN. HE THOUGHT HE IS VERY INTELLIGENT TO GOTTEN THE CHICKEN PROFITS AND PASS ALL THE SHIT TO ME. I AM JUST QUIETLY WHOLE DAY DONT TELL HIM BUAYA COMING, SEE HOW IDIOT IS CONMAN APOLLO... THE END RESULT CLOSING WITH 21sen SHOWING HE IS LPPL NOW....
Yup, I announced proudly that I sold 337,000 too early. But I'm not that unhappy because the stock hasn't been that high since 2014 and I was hedging my bets as well as looking to buy several overseas stocks that look like a huge bargain. And so selling some to take almost 40k off the market was the best solution to NOT reduce my cash holdings & STILL buy overseas shares while awaiting any crisis/ crash that may come soon.
Don't forget I STILL own 168,000 after selling another 10,000 from 19.5c to 21.5c today...
So you see, Huaan answered ALL MY WISHES! :D :D :D
Just check their past few years record, you will notice that their revenue can maintain at 300 mil per quarter. Now they reopen their factory in china, looks like Huaan has high chance to turnaround.
Greencat i think the new may not relevant besides you mentioned is small medium size coal company and thermal coal or coking coal.
Recently there is some shut down or closure of coal factory and this mainly on those not compliance with goverment regulation for pollution control and government plan to consolidate all those coal factory under big firms. I doubt big coal firm especially those listed one got facing closurd issues some more recent qtr there showing big jump in results.
You know Shandong who supply coking coals ? Besides Huaan is coking process company .... as long there is coal supplies to Linyi Yehua then there should be no issue on this.
Just a remark China did force closure of coal mines if not wrong most focus on thermal coal that used for energy or electricity producing. You will see those in Jiangshu area including Yangzhou. And government encourage to use other as subsitute to replace thermal coal for energy produce.
For steel making this uses coking coal. Recently there is increasing of steel construction activities so dont think this will slow down on coking coal processing.
http://www.100ppi.com/vane/detail-346.html This one is Chinese version as similar to JackMa123 English version, this is the price for second grade metallurgical coke price.
As at June 2017, the price is about 1,600+-, now the price is about 2,100 to 2,300. 1st grade and 2nd grade difference is about 200+-. So if price increased significantly, do you think coking coal supplies will face financial difficulties ?
For Thermal coal, price is quite stagnant for this year.
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. "
Again this stock surge in price is supported by fundamental news, any fall in price is opportunity for institutional investors to accumulate further for long term holding.
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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....
ilovehits
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Posted by ilovehits > 2017-09-05 17:17 | Report Abuse
$0.21 + $0.055 = $0.265. TP for tomorrow session. Kikiki...