Support is at 0.30, kiasi small trader is not enough to make the price drop lower than that, big players will come collect again, If you have gambling mindset like superinvestor9, you wont make money inn stock market..
haha, see who is dreaming. if you ever experience the market crush, today is nothing. then remember you don't buy when Huaan climbs back. no risk no gain ! I bought Huaan few times already. Just conclusion, if you have confident, just bought else don't touch
I saw a lot of people saying the similar things since last quarter out with huge profit...If you really experience market crush, then you can see this as a downtrend, as compared to last quarter moved from highest 60cents to this price level. But if you can make profit after the 1st qr out, I would say that you are really a very short term investor or so call gamblers, with a good sense and wise decision made.
Again, there is always 50/50 chance..since now this is lowest price for the year, definitely have support level. You can buy if you are risk taker like somebody..as the chance to go up now is much higher...But don't forget the trend.. all the best..
buffett888 previously set tp RM1 wor.. few minutes ago bought 0.30 with 10% gain wor.. how come became buy low sell high then deleted comments one.. not tp RM1 meh.. should have waited for 233% gain mah.. hmm
@GinTech, TP 1.00 is set by Betta68 which I highlighted is radiculous based on porrer fundamental. For volatile shares like Huaan, I won't hold for long.
Huaan may have higher risk to towards 0.20, please be careful, chartwise it may down towards 20 cents level.
For FA wise, assume revenue no changes, but since year 2018, EPT has been implemented with new ruling. Huaan results will be impacted by EPT. Assume each qtr NP result is 10M x 4 = 40M profit per annum / 1,132 M x PE ratio 6 = 0.21 cent TP. PE ratio 6 for China companies. Anyway, revenue assume no changes, but coke price in longer term might down towards level of 1,600 - 1,800. This will further shrink the bottomline level.
must have the courage to collect now and enjoy in a few months when things get clear. Now everyone panic as everything doesn't look stable and not conducive. Im thinking deep and may take the gamble to go in BIG today...buy and keep for 6 months....anyone in the same mindset ?
Huaan operators are very patient chaps. Nov last year, they took one month to push down from 35.0 to 21.5, on the issue of delisting, despite good Q3'17 result. On the same token, they will capitalise kaw kaw on this "poor" Q1 result (emphasis on the quotation mark " "), to push Huaan down to low 20s again, So be patient, get it low, as Q2 is going to be much better than Q1 "poor" result (emphasis on the quotation mark " "). Of course they will spook the market that Q2 will be bad.
The Group recorded an operating expenses of approximately RM6.3 million during the quarter under review compared to RM4.1 million in the immediate preceding quarter ended 31 December 2017. Such relatively higher operating expenses was mainly attributed to the payment of gratuity to factory workers as well as expenses incurred for waste disposal and the payment of the new environmental protection tax (ETP).
The cost of sales recorded by the Group during the quarter under review was approximately RM253.7 million as compared to RM246.7 million during the immediate preceding quarter ended 31 December 2017. Despite the increase in sale volume, the average coal price had remained at approximately RMB1,317 per tonne during both the consecutive quarters in question. The pricing dynamics of coke and coal over the past two quarters have resulted the Group succumbed to a much lower gross profit of approximately RM11.9 million in the current quarter under review compared to approximately RM30 million in the immediate preceding quarter ended 31 December 2017.
There are 2 main expenses affecting this qtr, one is gratuity and one is ETP, that's why I use 10 m for each qtr not 5 m. Don't think ETP is slight impact, it base on total pollution volume x the penalty rate per pollution volume. Anyway, margin wise will not be double digit, instead it will single digit. Anyway, all agak agak only.
Anyway, ETP need to add waste disposal cost as well as total cost for this pollution control treatment. The more you incurred for waste disposal and pollution control equipment, the ETP penalty might be lower at some amount. But total up it will be some significant expenses to the company. Coke production definitely will have air pollution.
Some listed companies in China doing coke business has in last couple years implemented some changes in their production line towards changes to another business line which will be more favorable to green environment. Another factor you need to take into consideration is that the demand for coke for building construction will be slower down plus govt strict control on pollution will affect the coke business.
These simi tax, simi operating expenses are minor, won't affect much to the bottom line. Importantly, have to contain the raw material costs then we will see a surge in the profit.
I think for Huaan, probably u need to watch out, with poor Q1 result, very challenging to go back 35-40cents range currently, but downside risk probably warranted, 20-30cents range, unless very clear on Q2 earning or very high average coke price, usually after poorer Q1 result, share will slowing moving down. Please stay alert. Good luck. My thought.
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....
winwin2288
1,325 posts
Posted by winwin2288 > 2018-05-30 09:52 | Report Abuse
drop 1 day only so kiasi ? Huaan should back to 0.40 above !