Hold on guys, today share will close 0.31, still too early to conclude or feeling sory...investors usualy need at least to meet from 9 to 10 am and make decision, i am sure they will enter Huaan, another 50 milion share to be traded by today..
Operator bought with average price of 0.26 yesterday, wait them sell all 70 millions shares today and tomorrow. Then only re-entrance.Today sure will close 0.275 or below, support for now on 24 cents, resistant is 27.5 cents.
Fake queue on buyer just want pull the price up a bit and continue trap others. There are not really have volume being trade anymore. If really strong buying interest, volume should more then 100 millions for today. Now operator is slowly slowly release. So that retailers that not buy this counter before will being trap on it.
With more than 61 milion share traded in Huaan this morning, moostly profit taking still Huaan is holding very well, this promiss a good afternoon session for today, hopefuly can break 0.30
So despite Huaan price lacklustre performance this morning after upliftment, it is really not a worry, if you are willing to hold for at least 3 to 6 months, as many good things are lining up for Huaan in short term:
1) Funds come in 2) Strong 4Q WITH dividend 3) IB restart coverage of Huaan
Talking about strong 4Q, let us see how strong Huaan 4Q will be.
Linyi coke spot already reach 2300 yesterday and maintain this rate today. If Linyi spot remain 2300 for the rest of December (which is highly likely) then Huaan Q4 coke spot average is 1993. This is HIGHER than Q3 spot average of 1981 (based on 52steel data).
So Huaan Q4 profit should be at least 3.0 sen (Q3 profit is 3.1 sen). Add the by-products higher profit (especially the extra profit from coal tar), then Huaan Q4 profit will be at least 3.5 sen. This is BETTER THAN Q3 profit, wow !!!! And that has not factor in the profit from hedging and higher production volume, which can give earning of at least 6 sen ! That is how STRONG Huaan Q4 will be.
In fact, even WITHOUT factor in the profit from hedging and higher production volume, Huaan Q4 profit could easily reach 10 sen ! Unbelievable right ? Well, I shall share how Huaan can attain that. In the meantime, stay tune. Cheers .......
Ha ha kelvin61, you let the cat out of the bag ! Anyway, it is ok. It is in fact good to know someone who share the view. Good on you, bro ! Cheers (<-- this "Cheers" I copy your style ! hahahaha ....)
Misleading info lah brother! Huaan can give dividend? Go to study 1st lah b4 misleading others. Huaan not qualified to give dividend at least few quarters.
Just like what i said in this morning, It is been over value, too over goreng by operator, time for take profit, now almost back to the fair value. It worth 24-25 cents before next excellent QR released.
If you hold this for at least couple of month you will know this counter are really control by big shark( operator), they likely pump and dump. Retailers will be easily being trap to get in if you dont know average down and taking profit on the right timing.
Yea, it is making profit for us that are already bought before announcement, but really feel unfair for those who chase high in this morning. They maybe being trap already. ikan bilis that eat by big shark
I think tomorrow onward is better timing, loading with at least 3 phases, like 0.265, 0.255...... and hold it for medium term, you will see the bloom again ><
Earlier I said Huaan Q4 earning could easily be 10 sen, and kelvin61 mentioned about reversal of impairment. Yes, it is the reversal of impairment that could make Q4 earning 10 sen (thanks kelvin61) Below is the elaboration on this reversal and its effect.
In Q4 2016, Huaan make impairment of Property, plant & equipment (PPE) for the sum of RM152.6 million (pls see pg. 4 of 2016 Q4 qrt rpt).
This impairment was essentially due to the DECREASE IN VALUE of the PPE which was caused by the poor coke market at that time which resulted in low utilisation of the 5 ovens (oven 1,2 & 3 leased out, 4 & 5 not in operation).
But 2017 coke market has recovered strongly and oven 1, 2 & 3 are now in full operation and produced good profits. Due to this coke market recovery, the PPE has REGAINS ITS VALUE, hence there is a need to reverse the impairment made in 2016.
Amount of impairment to be reversed: (1) If oven 4&5 not yet in operation, then reverse half of 152.6 mil = 76.3 mil (or 6.8 sen profit) (2) If oven 4&5 already start operation, the reverse the full 152.6 mil (or 13.6 sen profit)
If we assume oven 4&5 not yet in operation, then add the impairment reversal profit of 6.8 sen to the coke/by-products profit of 3.5 sen, then we have Huaan Q4 profit = 10.3 sen ! and this shoot up Huaan NTA from 31 sen to 41.3 sen !! (if oven 4&5 in operation, then Q4 profit = 17.1 sen ......... !!! )
Though this reversal of impairment is not core earning, it signifies the strong recovery of the coke industries and it will bring back confidence for Huaan. This will augurs very well for Huaan share price !!! Yeah ................
(For actual examples of malaysia public listed companies reversal of impairment, you may read this 2013 Doctoral Theses - https://cora.ucc.ie/handle/10468/1371 )
ATTENTION ! ! ! ! ! ! Pls note what the 2013 Doctoral Theses said in the abstract "On average, the Malaysian stock market values the reversals of impairment losses positively." .. Yeah, way to go!
So now Huaan have a total of 5 horses running for them !
1) Strong coke spot average (about same as Q3) (pls see my comment on 19/12) 2) By-products higher selling price (especially coal tar) which could make extra 5 mil ringgit profit (pls see my comment on 2/12) 3) Profits from hedging (pls see my comment on 19/11 & 29/11) 4) 78% increase of production volume (pls see my comment on 14/11) 5) Reversal of impairment (profit from 76.3 mil to 152.6 mil) (pls see my comment on 19/12)
This is simply AWESOME ! These horses will do great to the bottomline. Yeah ......
(and take special note of the hedging, it could be the DARK HORSE which could make profit of rmb 600 - 700 ton for Huaan in Q4)
Notwithstanding the above said, Huaan price might still come down tmr, ha ha ha ! But it is ok, medium/long term investors including me are not selling tmr !
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....
heng5275
288 posts
Posted by heng5275 > 2017-12-19 09:40 | Report Abuse
Hahahaha..dont happy lo..as u said delisted from bursa mah..so delisted lo..so funny...