I actually prepared for their profit to be halved, with cash generated to weather through the coming recession. The capacity expansion just come in at the wrong time but it won't burden them much. What I concern more is the impact of the environment issue (although they claim they are very environmental friendly, but the industry is well known to be notoriously pollutant. If what they claimed was true, we might see their competitors shutting down by environmental pressure, thus benefiting them). Can try to invest on this type of share, but not to be dominant in the portfolio. That's my 2 cents.

I think the capex already incurred and reflected in their 2Q financial statement, and personal cost will be limited to direct labor to the new plant (a lot of overlapping labor can be saved, if they planned it wisely). I still waiting for 3Q result to confirm whether to increase/ decrease/ maintain my holding. But judge from the research posted on their website, I guess 3Q result might be 10~20% lower than 2Q, thus maintain 'buy in weakness' policy for me. Wait for 3Q result, I long term investor. The one-day rally almost over, think market was not convincing with Dow's 10% hike.

I from electronics industry, just like many of the forumers. But engineer means to have knowledge a bit here, a bit there... half past 6 type, jack in all trades but master in none, so please don't believe me too much.

Depreciation affecting cash flow, because it need to deducted out in the cash flow from profit after tax Please correct me if I am wrong.
Sometime it will be wise for company to continue running their plant at cost or small loss due to the capex incurred & depreciation, the plant might designed for a optimal capacity but running below capacity is not a crime sometime. It all down to company policy and strategy...

Sky sounds like an accountant

We might need all the half past six guys (and gals) to get the complete picture.

But I will more emphasis on cash flow than earning, just like you. Because company can survive with no profit (or even loss), but not no cash flow.
For the Hua An case, they have to keep the plant running, even at lower selling price, to get the cash and keep the company afloat. Until 3Q, it seems like still doing all right, but we will have to look into their incoming financial statement to get a clearer picture, hope we don't have to wait too long (if result is good, like PBB, they only take 14 days to publish their 3Q result; if company going to take 2 months for that, better beware ). From the trend of Hua An, seems they start accumulating cash for FY'08 and the speed is tremendous (maybe they want to prepare for the slow down, who knows), hopefully they can keep it up and shareholder should be able to expect for dividend return of more than 10%. God bless all of us

But I read their dividend policy is >20% payout rate, YTD EPS is 6.5 cents (6.5*20% = 1.3 cents). If 2H08 profit halved, then final dividend should be 2 cents at least, then those masuk at 20 cents are expect to get 10% dividend return (one-tier).

They only gave once, that's the final dividend you got last time. This year no interim dividend, yet.

This post has been edited by htt: Oct 29 2008, 01:20 PM

0.245/0.250 now.

Very hard to say, 3Q result can be out anytime from now, the price will have to be determine with the result. Think will go in again at lower 20s.

China announces $586 billion stimulus plan.

Will it helps?

Waiting for the next boat?

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Added on November 11, 2008, 5:47 pmHua An 3Q result out. 3Q burning cash, kena drag by customers? Profit drop 70+% (expected), revenue almost double up from a year ago but margin kena squeeze like hell. Worse than my expectation...
Closing drop quite a lot. Good move for sky, or just sheer luck?

This post has been edited by htt: Nov 11 2008, 05:52 PM

Haha... same to me...
But I wondering who are their customers? Because FerroChina listed in SGX just went bust (their mill at Jiangsu, shouldn't be wah).

This post has been edited by htt: Nov 11 2008, 07:14 PM

I sold much lower few days ago, waiting to buy back then the day never come

Prudent will never get me rich

Q at 0.235.

No luck today, try tomorrow

Agree, don't put all eggs into one basket. This is a good trading stock and maybe grow stock in some portfolio.

FD Didn't manage to grab Hua An egg today

Asset based on fair value, some asset might have adjustment but not reflected in P&L.

4Q'08 -> loss heavily
1Q'09 -> loss not so heavily
2Q'09 ->
judge yourself.
cash position stronger at least.

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Added on May 29, 2009, 6:48 pmThat's the translation different that made the magic, because RM drop against CNY I think, accounting treatment things, no big deal.

This post has been edited by htt: May 29 2009, 06:48 PM