Yes, i buy 15000 shares bcos of her statistics. Expect to earn 30sen per share by end of the year.


Warning : Not meant for eating KFC on daily basis.

This post has been edited by SKY 1809: Apr 22 2008, 02:58 PM

should be HUAAN (2739)

Haha, had a dirty thought for a moment!! Her stats...

if like that, i also wanna wake my punjabi boyfriend, aka Kulim-Singh to wake up liao

he has been sleeping all day long

THANK YOU!

Since you had made some research on it.

Curious to ask as I knew Huaan is making coke for steel processing fuel then how will rising coal price affect its cost?Coke need to made from coal, right?
Coal has been rising quite drastically recently, that's one of the reason TNB share price tumble as well.

hahahaha good one pana, my teh almost come out from my nose hahaha

hey by the way, we have new member here

your siggy says "future broker representative" huh, woot!

Huaan confident that they can pass on the increasing operations cost to customers and still remain robust from increasing coke prices which are rising well..

lol, suddenly strike me

Thank you!

graduated from UCSC few years ago, and going back for my new job.

ok, thks for the information, may be will keep on eye on it as well.

At first , i am also cofused, thinking coke means coke cola.


It means to work well for Huann if steel price is firm, like crude oil palm. It is an Agent to reduce cost for steel production.

I'm in it dy...fundamentals are very good..

Huaan,

A proxy into China's coke-steel industry. Sino Hua-An (Huaan) is the
largest independent and third largest coke producer in Shandong
commanding a market share o f 10%. Coke is an energy source as well as
a reducing agent for the manufacture of steel.
.
High steel prices continue to support high coke prices and margins.
Locking in electricity and transport requirements on a long term basis
protect margins which at 20%-22% margin is better than its peers.

.
Aggressive capacity expansion. We expect continuing growth in China's
steel sector to fuel coke demand. Huaan is constructing 2 more ovens by
May 2008 to boost its current capacity to 1.5m MT in 2H 2008 and to 1.8m
MT p.a by 2009.
.
Future downstream expansion into a 49% -stake Shandong's largest
independent pig iron producer for RM500m provides stable off-take for its
coke but current high coke prices and demand makes it more profitable to
sell to third parties.
.
Rising coke prices. We are assuming coke price of RMB1,760/MT for
Huaan vs. the curren t regional spot price of RMB2,00 0/MT. Our price
assumption is at a conservative level given coke prices at certain regions
of China have reached as high as RMB2,350/MT in April 2008.
.
Compelling valuation at 3.0x FY09. Fair value at RM0.96 based on 6.5x
PER represents 20% discount to the steel industry's average 2008 PER of
8.0x - discount is warranted to account for the execution risk of its
overseas operation. Note however, Huaan is trading at a substantial 83%
discount to its Chinese peers. We expect with investors' increase familiarity
and proven execution, the discount factor will be narrowed. BUY with a
60% upside from the current RM0.655 level.
Earnings Estimates

FYE 31 Dec
2006 2007 2008E 2009E 2010E

Pretax profit (RMm)
115.0 115.0 151.9 198.5 246.0

Net profit (RMm) 115.0 127.5 168.8 209.1 184.5

Net profit growth (%)
-27.2 10.9 32.3 23.9 -11.8


EPS (sen) 10.2 11.4 15.0 18.6 16.4
EPS growth (%) -27.2 10.9 32.3 23.9 -11.8
DPS (sen) 0.0 0.0 0.0 0.0 0.0
NTA/share (RM) 0.24 0.54 0.69 0.88 1.04

PER (x) 6.4 5.8 4.4 3.5 4.0
Div. Yield (%) 0.0 0.0 0.0 0.0 0.0
EV/EBITDA (x) 6.9 3.9 2.9 2.1 1.7
ROE (%) 30.7 26.0 21.1 21.2 15.6
Net gearing (x) 0.0 0.0 0.0 0.0 0.0

NOT ASKING YOU TO BUY. FOR DISCUSSION PURPOSE.

and i read that, HUAAN is the one-and-only China company that list in malaysia...

Coke is not an agent to reduce cost of steel, but an essential raw material to produce steel from iron ore.It is about extracting carbon content and segregating iron and other oxidised components. Sorry, forget liao, need to flip back my metarlugical notes for futher details.

If Huaan is able to pass the rising cost coal to the customers, then shouldn't much problem to register good earning result.

---

Added on April 22, 2008, 3:11 pmIn fact, it is the first and only one foreign listing in KLSE.

This post has been edited by cherroy: Apr 22 2008, 03:11 PM

Yes, I think it is...took over from Antah's listing..

The price of commodities will continue to skyrocket as the US dollar fundamental is still weak. But my question is how bout future demand and future output of China after the olympics?

SKY 1809, you may want to take a peek at investlah.com (got to know this forum from alivecmh)

the forumer "tikus" says,

"Sino Hua-an is the largest producer of metallurgical coking coal in China, the price of metallurgical coking coal has risen for > than 240% above the last year level, the rise is even faster than the price of oil and gas. "

"My baby Huaan closes at 75 sen, already up 4.2% today, take 70 to 80 sen as guide, it is 50:50 situation, not advisable for risk adverse investors

However, if the price you take 85 sen as target, Huaan is still ok as a min of 3% dividend will be paid out"

This post has been edited by panasonic88: Apr 22 2008, 03:15 PM