KLCI Stock - HUAAN / 2739 - 2012 Quarter 2

SINO HUA-AN INTERNATIONAL BERHAD



Company Description

Sino Hua-An International Berhad (Hua-An) is an investment holding company. Through its subsidiary, the Company is principally involved in the manufacturing and sales of metallurgical coke and other related by-products. The wholly owned subsidiaries of the Company includes: Fancy Celebrations Sdn. Bhd., PIPO Overseas Limited, Linyi Yehua Coking Co., Ltd.

Company Info 

Listing Date	1983-11-28
Market Capital (Capital Size)	196,403,867 (Small)
Par Value	RM 0.50
Board	Main
Sector	Industrial Products
Major Industry	Metallurgical Coke
Sub Industry	Investment Holding
Website	http://www.sinohuaan.com/

My Analysis 

Forecast P/E now	N/A
Target Price	0.19
Decision	Not interested unless stock price strong sustain above 0.17 and got continue buy volume above 0.17
Comment	Revenue decreased 11% and was second consecutive quarter decreasing and also lower than preceding year corresponding quarter 6.2%, eps increased 23.2% loss and was third consecutive quarter loss and was profit on preceding year corresponding quarter, cash generated from operating enough to cover all expenses, gross margin worsening, liquidity ratio indicate quite strong of financial strength to meet current obligation but quick assets ratio is over much than current liabilities, gearing ratio already very low without any borrowing, all accounting of turnover period is short, affecting by high raw material cost and lower metallurgical coke price
First Support Price	0.17
Second Support Price	0.16
Risk Rating	HIGH

Research House

OSK Target Price

0.235 (2012-02-27)

Accounting Ratio 

Return on Equity	-8.07%
Dividend Yield	-
Gross Profit Margin	-6.69%
Operating Profit Margin	-7.20%
Net Profit Margin	-7.20%
Tax Rate	-
Asset Turnover	1.9618
Net Asset Value Per Share	0.61
Net Tangible Asset per share	0.51
Price/Net Tangible Asset Per Share	0.36
Cash Per Share	0.03
Liquidity Current Ratio	2.7851
Liquidity Quick Ratio	1.886
Liquidity Cash Ratio	0.3699
Gearing Debt to Equity Ratio	0.123
Gearing Debt to Asset Ratio	0.1096
Working capital per thousand Ringgit sale	10.0%
Days to sell the inventory	18
Days to collect the receivables	26
Days to pay the payables	20

Technical Analysis 

SMA 10	0.171 (Uptrend)
SMA 20	0.171 (Downtrend 38 days)
SMA 50	0.176 (Same)
SMA 100	0.18 (Same)
SMA 200	0.206 (Downtrend)
MACD (26d/12d)	-0.001084 ( 0.000426 )
Signal (9)	-0.001662 ( 0.000145 )
MACD Histogram	0.000578 (Bullish trend 6 days)
Bolinger Upper Band	0.179
Bolinger Lower Band	0.163

My notes based on 2012 quarter 2 report (number in '000):-
- Lower revenue and higher loss due to lower average selling price of metallurgical coke and persistently high raw material prices offset by appreciation of approximately 5% of Renmimbi against Ringgit

- No estimate next 4Q eps after 2012 Q2 result announced
- No estimate next 4Q eps after 2012 Q1 result announced
- No estimate next 4Q eps after 2011 Q4 result announced
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0039*2*1.05 = 0.0082, estimate highest/lowest PE = 30.88/2 (DPS 0.00178)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.007, estimate highest/lowest PE = 41.17/22.34 (DPS 0.00178)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate highest/lowest PE = 49.75/29.75 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

HUAAN latest news (English)

HUAAN latest news (Chinese)

Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2012-08-27	2012	2	N/A	N/A	-	3.39%	6.15%	340240	722362	24498	44410	24498	44410	0.0218	0.0396	768046	84145	-	683901	8809	879	N/A	23197	7930	7930	31127	1122308	1122308	207626	2012-06-30	6.69%	7.20%	7.20%	-	1.9618	-	0.61	0.51	0.36	0.03	2.7851	1.886	0.3699	0.123	0.1096	10.0%	18	26	20
2012-05-22	2012	1	0.215	0.17	-	2.76%	2.76%	382122	382122	19913	19913	19913	19913	0.0177	0.0177	770102	86010	-	684092	10986	42	N/A	22241	11028	11028	33269	1122308	1122308	207626	2012-03-31	3.80%	5.21%	5.21%	-	1.9855	-	0.61	0.51	0.36	0.03	2.8527	1.9449	0.3868	0.1257	0.1117	10.4%	19	29	20
2012-02-24	2011	4	0.255	0.18	-	2.13%	1.38%	403335	1526564	14833	9614	14833	9614	0.0132	0.0086	829265	107647	-	721618	3928	1834	1998	22919	2094	96	23015	1122308	1122308	286188	2011-12-31	2.31%	3.68%	3.68%	-	1.8409	-	0.64	0.55	0.46	0.02	2.6205	1.6613	0.2138	0.1492	0.1298	11.4%	25	34	26
2011-11-25	2011	3	0.295	0.24	-	0.21%	0.75%	381021	1123229	1456	5219	1456	5219	0.0013	0.0047	839038	103065	-	735973	25243	1263	1998	22930	23980	21982	44912	1122308	1122308	274965	2011-09-30	2.07%	0.38%	0.38%	-	1.7743	-	0.66	0.56	0.44	0.04	2.7485	1.7877	0.4358	0.14	0.1228	12.1%	25	31	26
2011-08-23	2011	2	0.29	0.185	-	0.42%	0.54%	362541	742208	2899	3764	2899	3764	0.0026	0.0034	848468	148371	-	700097	18794	1039	1998	21941	17755	15757	37698	1122308	1122308	263742	2011-06-30	2.41%	0.80%	0.80%	-	1.6888	-	0.62	0.53	0.44	0.03	2.0762	1.2264	0.2541	0.2119	0.1749	11.1%	33	33	38
2011-05-19	2011	1	0.35	0.21	-	0.12%	0.12%	379667	379667	865	865	865	865	0.0008	0.0008	825292	138486	-	686806	14392	469	N/A	21821	13923	13923	35744	1122308	1122308	381584	2011-03-31	1.98%	0.23%	0.23%	-	1.7119	-	0.61	0.52	0.65	0.03	2.0594	1.2997	0.2581	0.2016	0.1678	10.4%	28	34	37
2011-02-25	2010	4	0.4	0.315	0.00178	0.41%	0.87%	365470	1406754	3019	6406	3019	6406	0.0027	0.0057	836524	140516	-	696008	14892	14574	N/A	21956	318	318	22274	1122308	1122308	381584	2010-12-31	0.91%	0.83%	0.83%	-	1.6817	59.5668	0.62	0.52	0.65	0.02	1.9928	1.0525	0.1585	0.2019	0.168	9.9%	35	29	37
2010-11-30	2010	3	0.41	0.33	-	0.14%	0.46%	325186	1041284	1025	3387	1025	3387	0.0009	0.0030	761764	75524	-	686240	17513	13862	N/A	22054	3651	3651	25705	1122308	1122308	381584	2010-09-30	1.92%	0.32%	0.32%	-	1.7841	-	0.61	0.52	0.65	0.02	2.6697	1.9078	0.3404	0.1101	0.0991	9.3%	16	28	21
2010-08-24	2010	2	0.41	0.335	-	0.66%	0.32%	342506	716098	4844	2362	4844	2362	0.0043	0.0021	804818	98914	-	705904	12183	10538	N/A	23117	1645	1645	24762	1122308	1122308	392807	2010-06-30	3.18%	1.41%	1.41%	-	1.7192	-	0.63	0.53	0.66	0.02	2.2524	1.5518	0.2503	0.1401	0.1229	9.0%	19	31	27
2010-05-17	2010	1	0.42	0.315	-	0.34%	0.34%	373592	373592	2482	2482	2482	2482	0.0022	0.0022	804978	102861	-	702117	16395	5176	N/A	23302	11219	11219	34521	1122308	1122308	448923	2010-03-31	1.52%	0.66%	0.66%	-	1.6683	-	0.63	0.53	0.75	0.03	2.1206	1.464	0.3356	0.1465	0.1278	8.6%	19	28	28
2010-02-25	2009	4	0.505	0.39	-	0.29%	2.70%	317748	1280293	2421	20862	2194	20635	0.0020	0.0184	827308	93779	-	733529	57910	61747	N/A	28279	3837	3837	24442	1122308	1122308	544319	2009-12-31	0.27%	0.76%	0.76%	-	1.5475	-	0.65	0.56	0.87	0.02	2.2733	1.4479	0.2606	0.1278	0.1134	9.3%	22	28	27
2009-11-13	2009	3	0.565	0.46	-	2.42%	2.41%	349834	962545	18470	18441	18470	18441	0.0165	0.0164	852842	106520	-	746322	53296	47996	N/A	29427	5300	5300	34727	1122308	1122308	572377	2009-09-30	6.77%	5.28%	5.28%	-	1.4017	-	0.66	0.57	0.89	0.03	2.1762	1.6053	0.326	0.1427	0.1249	10.5%	17	36	30
2009-08-17	2009	2	0.575	0.465	-	1.74%	4.83%	301760	612711	13279	36911	13279	36911	0.0118	0.0329	861073	123675	-	737398	21524	26202	N/A	29594	4678	4678	24916	1122308	1122308	611657	2009-06-30	1.57%	4.40%	4.40%	-	1.5592	-	0.66	0.56	0.97	0.02	1.988	1.4879	0.2015	0.1677	0.1436	9.1%	16	36	31
2009-05-28	2009	1	0.59	0.39	-	3.09%	3.09%	310950	310950	23632	23632	23632	23632	0.0211	0.0211	918626	147810	-	770816	16482	788	N/A	30039	15694	15694	45733	1122308	1122308	516261	2009-03-31	4.34%	7.60%	7.60%	-	1.6059	-	0.69	0.59	0.78	0.04	2.0569	1.6577	0.3094	0.1918	0.1609	10.6%	14	45	36
2009-02-25	2008	4	0.495	0.175	-	11.72%	0.07%	232903	1455050	98415	1024	83651	535	0.0745	0.0005	870407	106579	-	763828	33486	13098	25504	33870	20388	5116	28754	1122308	1122308	241296	2008-12-31	43.58%	42.26%	42.26%	-	1.6717	451.0212	0.68	0.58	0.37	0.03	2.5292	2.0818	0.2698	0.1395	0.1224	11.2%	12	46	27
2008-11-11	2008	3	0.325	0.21	-	1.64%	11.79%	496933	1222157	13935	99448	11712	84195	0.0104	0.0750	1010014	163499	-	846515	73052	12859	25504	30411	60193	34689	65100	1122308	1122308	342303	2008-09-30	4.52%	2.80%	2.80%	15.95%	1.4411	-	0.75	0.66	0.46	0.06	2.4814	1.6573	0.3982	0.1931	0.1619	16.6%	39	51	44
2008-08-22	2008	2	0.565	0.185	-	5.17%	10.15%	434426	725224	43583	85513	36915	72483	0.0329	0.0646	846020	43723	-	802297	54286	9933	N/A	31386	44353	44353	75739	1122308	1122308	611657	2008-06-30	12.57%	10.03%	10.03%	15.30%	1.3978	-	0.71	0.62	0.88	0.07	6.2875	3.4384	1.7322	0.0545	0.0517	19.5%	47	23	9
2008-05-23	2008	1	0.725	0.54	0.02275	4.98%	4.98%	290798	290798	41927	41927	35565	35565	0.0317	0.0317	813241	49993	-	763248	41177	80	N/A	31742	41257	41257	72999	1122308	1122308	819284	2008-03-31	17.80%	14.42%	14.42%	15.17%	1.1782	-	0.68	0.58	1.26	0.07	4.9011	3.2161	1.4602	0.0655	0.0615	20.4%	40	33	17
2008-02-25	2007	4	0.835	0.54	-	13.94%	47.49%	233375	852733	44235	151948	37441	127523	0.0334	0.1211	763467	49540	-	713927	124540	228524	127035	9030	103984	23051	32081	1122308	1053431	684607	2007-12-31	21.34%	19.01%	18.95%	15.36%	1.1169	5.039	0.68	0.58	1.05	0.03	3.9896	2.4781	0.6476	0.0694	0.0649	17.4%	41	38	21
2007-11-21	2007	3	0.875	0.585	-	14.85%	33.55%	223980	619358	46954	107713	39882	90082	0.0355	0.0874	756729	76912	-	679817	81656	167373	145615	15145	85717	59898	75043	1122308	1030220	886623	2007-09-30	22.85%	21.14%	20.96%	15.06%	1.0647	-	0.66	0.56	1.41	0.07	3.0737	2.2542	0.9757	0.1131	0.1016	19.8%	36	44	25
2007-08-28	2007	2	1.0	0.765	-	12.11%	18.70%	210018	395378	38421	60760	32505	50202	0.0290	0.0510	731948	97234	-	634714	94998	113213	146020	9644	18215	127805	137449	1122308	983413	1672238	2007-06-30	21.12%	18.52%	18.29%	15.40%	0.7947	-	0.65	0.54	2.76	0.12	2.7524	2.1787	1.4136	0.1532	0.1328	29.3%	43	46	50
2007-05-31	2007	1	N/A	N/A	-	6.59%	6.59%	185361	185361	22339	22339	17697	17697	0.0210	0.0210	707748	107397	-	600351	46783	31001	190964	9091	15782	206746	215837	842974	842974	1188593	2007-03-31	19.04%	17.45%	12.05%	20.78%	0.5252	-	0.71	0.58	2.43	0.26	3.0443	2.6434	2.0097	0.1789	0.1517	59.1%	52	66	38
2007-02-27	2006	4	N/A	N/A	-	N/A	N/A	186315	730655	30396	114984	30396	114984	0.0380	0.1437	368258	99752	-	268506	65538	49263	18346	11759	16275	2071	9688	800000	800000	456000	2006-12-31	17.85%	16.93%	16.31%	-	0.5059	3.9658	0.34	0.33	1.73	0.01	1.3594	0.931	0.0971	0.3715	0.2709	19.2%	102	162	66

Financial Quarter Balance Sheet

year	qrt	Goodwill on consolidation (A-0)	Investment properties (A-0)	Land lease payment (A-0)	Property, plant and equipment (A-0)	Amount due from associated companies (A-1)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Inventories (A-1)	Land lease payment (A-1)	Other receivables, deposits and prepayments (A-1)	Trade receivables (A-1)	Advanced progress billings (L-1)	Amount due to associated companies (L-1)	Current tax liabilities (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Trade and other payables (L-1)
2012	2	107636	-	28819	397242	19072	31127	18022	75648	882	12988	76610	-	311	-	-	15264	68570
2012	1	107523	-	27830	389387	26081	33269	12698	78081	845	40056	54332	-	205	-	-	18239	67566
2011	4	107600	-	28864	410707	18843	23015	13264	103257	870	52558	70287	-	187	-	-	14262	93198
2011	3	107594	-	29017	419149	57524	44912	13730	99027	868	40815	26402	-	444	-	-	23396	79225
2011	2	107447	-	27636	405338	62729	37698	12794	126089	820	45428	22489	-	234	-	-	13686	134451
2011	1	107393	-	27254	405450	51800	35744	11788	105205	803	57227	22628	-	-	-	-	11132	127354
2010	4	107436	-	27931	421132	51529	22274	14916	132127	817	44441	13921	-	1799	-	-	23518	115199
2010	3	107407	-	27828	424899	54544	25705	12222	57548	796	34858	15957	-	-	-	-	27617	47907
2010	2	107496	-	29027	445504	72207	24762	12261	69298	824	20680	22759	-	455	-	-	9751	88708
2010	1	107500	-	29278	450078	53712	34521	11903	67530	825	38020	11611	-	1032	-	-	12616	89213
2009	4	107625	-	30912	475582	40574	24442	13661	77406	865	37883	18358	-	8319	-	-	13085	72375
2009	3	107671	-	31647	481720	72579	34727	18483	60805	880	23264	21066	-	1690	-	-	19630	85200
2009	2	107710	-	32323	475177	63699	24916	26100	61844	892	17285	51127	-	680	-	-	16995	106000
2009	1	107798	-	33560	473234	67187	45733	15051	59012	921	37803	78327	-	110	-	-	5602	142098
2008	4	107672	-	32317	460858	63436	28754	10669	47688	880	26935	91198	-	3704	-	-	7634	95241
2008	3	107216	-	32137	464959	-	65100	-	134743	869	1690	203300	-	793	10396	-	10999	141311
2008	2	107077	-	29798	434237	-	75739	-	124573	800	1488	72308	-	1303	19033	-	11276	12111
2008	1	107080	-	30169	430973	-	72999	-	84238	800	3237	83745	-	783	15097	-	9119	24994
2007	4	107114	-	30283	428423	-	32081	-	74882	747	24735	65202	5796	721	11176	-	3503	28344
2007	3	107184	17400	29876	365861	-	75042	-	63031	782	35106	62447	4723	2919	9669	22728	3751	33122
2007	2	107237	17400	29895	309790	-	137449	-	55781	782	25718	47896	1415	2946	10474	22742	29729	29928
2007	1	107237	17400	29912	226247	-	215837	-	43054	578	26070	41413	968	2948	8486	67209	3255	24531
2006	4	2351	-	9838	220471	-	9687	-	42728	364	42626	40193	1048	-	4301	67857	2882	23664

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Restructuring expenses
2012	2	340240	-	363005	-	154	1887	-
2012	1	382122	-	396647	-	164	5552	-
2011	4	403335	-	412638	-	184	5714	-
2011	3	381021	-	373132	-	131	6564	-
2011	2	362541	-	353791	-	88	5939	-
2011	1	379667	-	372151	-	160	6811	-
2010	4	365470	-	362148	-	222	525	-
2010	3	325186	-	318938	-	169	5392	-
2010	2	342506	-	331618	-	227	6271	-
2010	1	373592	-	367901	-	277	8450	-
2009	4	317748	227	318618	-	238	1789	-
2009	3	349834	-	326137	-	539	5766	-
2009	2	301760	-	306511	-	87	8615	-
2009	1	310950	-	324453	-	158	10287	-
2008	4	232903	14764	334399	-	174	2907	-
2008	3	496933	2223	474474	-	190	8714	-
2008	2	434426	6668	379802	-	414	11455	-
2008	1	290798	6362	239040	-	107	9938	-
2007	4	233375	6794	183564	126	62	5512	0
2007	3	223980	7072	172795	391	329	4169	0
2007	2	210018	5916	165671	464	173	5635	0
2007	1	185361	4642	150066	1138	212	3159	8871
2006	4	186315	-	153062	1149	97	1805	-

Financial Quarter Segments Revenue

year	qrt	Manufacturing
2012	2	340240
2012	1	382122

Financial Quarter Segments Profit

year	qrt	Investment holding	Manufacturing
2012	2	482	24016
2012	1	480	19433

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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●CHANGES IN SHAREHOLDING

ARCHIVES

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●CHANGES IN SHAREHOLDING

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●CHANGES IN SHAREHOLDING

KLCI Stock - HUAAN / 2739 - 2011 Quarter 4

Company Info 

Market Capital (Capital Size)	230,073,102 (Small)
Par Value	RM 0.50

My Analysis 

Decision	Mainly technical trading for now (not interested unless stock price strong sustain @ 0.205 and sell volume is very low compare to buy) unless coming quarter result got significant good result
Comment	Revenue increased 5.9% and was fifth consecutive quarter increasing (higher than preceding year corresponding quarter 10.4%), eps decreased 1115.4% and was second consecutive quarter decreasing and also lower than preceding year corresponding quarter 588.9%, cash generated from operating enough to cover all expenses, gross margin decreasing, slight weaker liquidity ratio at moderate level now, slightly higher gearing ratio from at low level now, slightly higher debt ratio but still far from historical high, all repayment period is good, affecting by higher raw material cost
First Support Price	0.205
Second Support Price	0.19
Risk Rating	HIGH

Research House

OSK Target Price

0.235 (2012-02-27)

Accounting Ratio 

Return on Equity	-1.33%
Dividend Yield	-
Gross Profit Margin	-2.31%
Operating Profit Margin	-3.68%
Net Profit Margin	-3.68%
Tax Rate	-
Asset Turnover	1.8409
Net Asset Value Per Share	0.64
Net Tangible Asset per share	0.55
Price/Net Tangible Asset Per Share	0.46
Cash Per Share	0.02
Liquidity Current Ratio	2.6205
Liquidity Quick Ratio	1.6613
Liquidity Cash Ratio	0.2138
Gearing Debt to Equity Ratio	0.1492
Gearing Debt to Asset Ratio	0.1298
Working capital per thousand Ringgit sale	11.4%
Days to sell the inventory	25
Days to collect the receivables	34
Days to pay the payables	26

Technical Analysis 

SMA 20	0.216 (Downtrend 51 days)
SMA 50	0.229 (Same)
SMA 100	0.243 (Same)
SMA 200	0.245 (Downtrend)
MACD (26d/12d)	-0.006804 ( 5.1e-005 )
Signal (9)	-0.006558 ( 6.1e-005 )
MACD Histogram	0.000246 (Bearish trend 10 days)
Bolinger Upper Band	0.234
Bolinger Lower Band	0.198

My notes based on 2011 quarter 4 report (number in '000):-
- Higher revenue primarily attributed to the better selling price of the metallurgical coke(FY10Q4:5%) and a general increase in sales volume

- Turning to loss due to increase in the average price of raw material-coking coal(FY10Q4:7%) and cost of sales

- No estimate next 4Q eps after 2011 Q4 result announced due to surging of raw material cost is faster than products selling price, trading decision for safety should based on price of metallurgical coke and coking coal
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0039*2*1.05 = 0.0082, estimate highest/lowest PE = 30.88/2 (DPS 0.00178)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.007, estimate highest/lowest PE = 41.17/22.34 (DPS 0.00178)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate highest/lowest PE = 49.75/29.75 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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KLCI Stock - HUAAN / 2739 - 2011 Quarter 3

Company Info 

Market Capital (Capital Size)	286,188,493 (Small)
Par Value	RM 0.50

My Analysis 

Forecast P/E now	(0.255-0.00178)/0.0082 = 30.88 (High)
Target Price	0.07+0.00178 = 0.07 (PE 8.0, EPS 0.0082, DPS 0.00178)
Decision	Not interested unless stock price follow Bolinger upper band moving up
Comment	Revenue increased 5.1% and was fourth consecutive quarter increasing (higher than preceding year corresponding quarter 17.2%), eps decreased 50% but higher than preceding year corresponding quarter 44.4%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, lower gearing ratio from below moderate to low level now, all accounting ratio are good, lower inventory can indicate Group products demand decrease
First Support Price	0.25
Second Support Price	0.19
Risk Rating	HIGH

Research House

OSK Target Price

0.23 (2011-11-29)

Accounting Ratio 

Return on Equity	1.14%
Dividend Yield	0.70%
Profit Margin	0.38%
Tax Rate	-
Asset Turnover	1.7743
Net Asset Value Per Share	0.66
Net Tangible Asset per share	0.56
Price/Net Tangible Asset Per Share	0.44
Cash Per Share	0.04
Liquidity Current Ratio	2.7485
Liquidity Quick Ratio	1.7877
Liquidity Cash Ratio	0.4358
Gearing Debt to Equity Ratio	0.14
Gearing Debt to Asset Ratio	0.1228
Working capital per thousand Ringgit sale	12.1%
Days to sell the inventory	24
Days to collect the receivables	31
Days to pay the payables	25

Technical Analysis 

SMA 20	0.256 (Uptrend 10 days)
SMA 50	0.254 (Same)
SMA 100	0.242 (Same)
SMA 200	0.278 (Downtrend)
MACD	0.001418 (Downtrend 4 days)
MACD Histogram	-0.000390 (Downtrend 11 days)

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue than FY10Q3 was primarily attributed to the continued upward trend experienced in the pricing of the metallurgical coke and a general increase in sales volume. The average price of metallurgical coke saw an improvement of approximately 17% whilst sales volume grew by approximately 3% during the current quarter compared with those in the preceding year corresponding quarter. Further improving the Group‟s consolidated revenue are the continued robust pricing of the by-products seen in the current quarter compared to those in the corresponding quarter in the preceding year. The average prices of ammonium sulphate, crude benzene, coal slime and middlings during the current quarter under review have increased by approximately 108%, 29%, 34% and 16% respectively while only the prices of tar oil suffered a slight setback of 7% compared to the same quarter last year

- In tandem with the increase in the prices of commodities, the average price of our raw material (i.e. coking coal) also saw an increase of approximately 18%. Coupled with an increase in sales/production volume, the cost of sales for the current quarter under review had recorded an increase of approximately 17%

- Higher pbt than FY10Q3 due to improvements seen in the prices of metallurgical coke and the by-products as well as the relatively higher sales volume, the Group managed to record a better gross profit

- Higher revenue than FY11Q2 primarily attributed to a 2% increase in sales volume as well as higher average pricing of metallurgical coke and some of its by-products. The average prices for metallurgical coke, ammonium sulphate, crude benzene and coal slime during the current quarter under review were up by 3%, 15%, 3% and 6% respectively while tar oil and middlings were down by 7% and 1% respectively

- Higher cost than FY11Q2 was due to an increase in sales/production volume as well as the higher average coking coal price by 7%

- Lower pbt than FY11Q2 due to increase in the average price of metallurgical coke was lower than that of the increase in the average coking coal price hence recorded a slightly lower profit

- Estimate next 4Q eps after 2011 Q3 result announced = 0.0039*2*1.05 = 0.0082, estimate PE on current price 0.255 = 30.88(DPS 0.00178)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.007, estimate highest/lowest PE = 41.17/22.34 (DPS 0.00178)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate highest/lowest PE = 49.75/29.75 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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KLCI Stock - HUAAN / 2739 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	252,519,258 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.225-0.00178)/0.0070 = 31.89 (High)
Target Price	0.06+0.00178 = 0.06 (PE 8.0, EPS 0.0070, DPS 0.00178)
Decision	Not interested unless stock price sustain above 0.25
Comment	Revenue increased 3.9% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 1.6%, eps decreased 70.4% but recovered from loss over preceding year corresponding quarter, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, slightly higher gearing ratio at below moderate level now, all accounting ratio are good
First Support Price	0.225
Second Support Price	0.2
Risk Rating	HIGH

Research House

OSK Target Price

0.32 (2011-05-20)

Accounting Ratio

Return on Equity	1.12%
Dividend Yield	0.79%
Profit Margin	0.80%
Tax Rate	-
Asset Turnover	1.6888
Net Asset Value Per Share	0.62
Net Tangible Asset per share	0.53
Price/Net Tangible Asset Per Share	0.44
Cash Per Share	0.03
Liquidity Current Ratio	2.0762
Liquidity Quick Ratio	1.2264
Liquidity Cash Ratio	0.2541
Gearing Debt to Equity Ratio	0.2119
Gearing Debt to Asset Ratio	0.1749
Working capital per thousand Ringgit sale	11.1%
Days to sell the inventory	32
Days to collect the receivables	33
Days to pay the payables	38

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue than FY10Q2 primarily attributed to the continued upward trend experienced in the pricing of the metallurgical coke and an increase in sales volume. The average price of metallurgical coke saw an improvement of approximately 1% whilst sales volume grew by approximately 8%. The average prices of ammonium sulphate, crude benzene, tar oil, coal slime and middlings have increased by approximately 88%, 24%, 1%, 11% and 16%

- Despite the improvements seen in the prices of metallurgical coke and the by-products as well as the relatively higher sales volume, the persistently lofty average price for raw materials and thus the production costs have resulted in lower gross profit

- Lower revenue than FY11Q1 primarily attributed to a 2% reduction in sales volume as well as lower average pricing of metallurgical coke and some of its by-products. The average prices for metallurgical coke, tar oil and middlings during the current quarter under review were down by 2%, 10%, and 1% respectively

- Higher pbt than FY11Q1 due to a reduction in sales/production volume as well as the easing of the average coking coal price by 5%

- Estimate next 4Q eps after 2011 Q2 result announced = 0.007, estimate PE on current price 0.225 = 31.89(DPS 0.00178)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate highest/lowest PE = 49.75/29.75 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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KLCI Stock - HUAAN / 2739 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	359,138,501 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.32-0.00178)/0.0070 = 45.46 (High)
Target Price	0.06+0.00178 = 0.06 (PE 8.0, EPS 0.0070, DPS 0.00178)
Decision	Not interested unless raw material costs decrease
Comment	Revenue increased 3.9% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 1.6%, eps decreased 70.4% but recovered from loss over preceding year corresponding quarter, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, lower gearing ratio at below moderate level now, all accounting periods are good, continuing affect by increased raw material costs
First Support Price	0.32
Second Support Price	0.315
Risk Rating	HIGH

Research House

OSK Target Price

0.32 (2011-05-20)

Accounting Ratio

Return on Equity	1.40%
Dividend Yield	0.56%
Profit Margin	0.23%
Tax Rate	-
Asset Turnover	1.7119
Net Asset Value Per Share	0.61
Net Tangible Asset per share	0.52
Price/Net Tangible Asset Per Share	0.65
Cash Per Share	0.03
Liquidity Current Ratio	2.0594
Liquidity Quick Ratio	1.2997
Liquidity Cash Ratio	0.2581
Gearing Debt to Equity Ratio	0.2016
Gearing Debt to Asset Ratio	0.1678
Working capital per thousand Ringgit sale	10.4%
Days to sell the inventory	27
Days to collect the receivables	34
Days to pay the payables	36

My notes based on 2011 quarter 1 report (number in '000):-
- Higher revenue primarily attributed to the favourable upward trend experienced in the pricing of the metallurgical coke and an increase in sales volume

- Lower pbt mainly due to increase in the average price of raw material(i.e. coking coal)

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate PE on current price 0.32 = 45.46(DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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KLCI Stock - HUAAN / 2739 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	415,253,892 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.37-0.00178)/0.0113 = 32.59 (High)
Target Price	0.09+0.00178 = 0.09 (PE 8.0, EPS 0.0113, DPS 0.00178)
Decision	NOT BUY
Comment	Revenue increased 12.4% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 15%, eps increased 200% and also recover from loss over preceding year corresponding quarter, cash generated from operating is enough to cover payables and investing activities, liquidity ratio decreased from moderate to low level now, gearing ratio increased from low to below moderate level now, all accounting periods are good
First Support Price	0.33
Second Support Price	0.32
Risk Rating	HIGH

Research House

OSK Target Price	0.41 (2010-12-01)
RHB Target Price	0.33 (2010-12-27)

Accounting Ratio

Return on Equity	0.92%
Dividend Yield	0.48%
Profit Margin	0.83%
Tax Rate	-
Asset Turnover	1.6817
Net Asset Value Per Share	0.62
Net Tangible Asset per share	0.52
Price/Net Tangible Asset Per Share	0.65
Cash Per Share	0.02
Liquidity Current Ratio	1.9928
Liquidity Quick Ratio	1.0525
Liquidity Cash Ratio	0.1585
Gearing Debt to Equity Ratio	0.2019
Gearing Debt to Asset Ratio	0.168
Working capital per thousand Ringgit sale	9.9%
Days to sell the inventory	34
Days to collect the receivables	29
Days to pay the payables	37

My notes based on 2010 quarter 4 report (number in '000):-
- Higher revenue was primarily attributable to the favourable upward trend experienced in the pricing of the metallurgical coke and an increase in sales volume

- The average price of metallurgical coke saw an improvement of approximately 16% whilst sales volume grew by approximately 5% respectively during the current quarter compared with those in the preceding year corresponding quarter

- The average prices of ammonium sulphate, crude benzene, tar oil, coal slime and middlings during the current quarter under review have increased by approximately 37%, 16%, 32%, 34% and 33% respectively compared to the same quarter last year

- Following the increase in sales volume and an increase in the average price of raw material (i.e. coking coal) of approximately 21%, the cost of sales for the current quarter under review had risen to RM362.1 million compared to RM318.6 million recorded in the preceding year corresponding quarter, representing a hike of approximately 14%

- As a result of the better average prices of the metallurgical coke and its by-products and the growing sales volume, the Group has managed to turn around and record a gross profit

- The improvement in revenue was primarily attributed to the favourable average pricing of the metallurgical coke and of its by-products in comparison with those prices registered in the preceding quarter. The average prices for metallurgical coke, ammonium sulphate, crude benzene, tar oil, coal slimes and middlings during the current quarter under review were increased by 10%, 29%, 5%, 8%, 31% and 19% respectively

- Cost of sales in the current quarter has correspondingly increased in the preceding quarter ended 30 September 2010, an increase of approximately 14%. This was due to the average coking coal price during the quarter under review being 13% higher than that of the preceding quarter

- As a result of the gradually improving industry circumstances stemming from better average prices for the metallurgical coke and the by-products, the Group recorded a profit for the current quarter of approximately RM3.0 million, signifying its continued profitable streak for the third consecutive quarters since the earlier quarter ended 30 June 2010

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate PE on current price 0.37 = 32.59
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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KLCI Stock - HUAAN / 2739 - 2010 Quarter 3

Company Info

Market Capital (Capital Size)	432,088,509 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	0.385/0.0104 = 37.02 (High)
Target Price	0.0104*8.0 = 0.08 (PE 8.0, EPS 0.0104)
Decision	NOT BUY
Comment	Revenue second consecutive quarter decreasing and also lower than preceding year corresponding quarter, eps decreased and also lower than preceding year corresponding quarter, free and net cash flow increased, equity still decreasing, low profit margin, liquidity ratio increasing at moderate level now, gearing ratio decreasing at low level now, all accounting period are better compared to historical quarter, coking coal price increased
First Support Price	0.34
Second Support Price	0.33
Risk Rating	HIGH

Research House

OSK Target Price	0.41 (2010-12-01)
RHB Target Price	0.33 (2010-12-27)

Accounting Ratio

Return on Equity	0.19%
Dividend Yield	-
Profit Margin	0.32%
Tax Rate	-
Asset Turnover	1.7841
Net Asset Value Per Share	0.61
Net Tangible Asset per share	0.52
Price/Net Tangible Asset Per Share	0.65
Cash Per Share	0.02
Liquidity Current Ratio	2.6697
Liquidity Quick Ratio	1.9078
Liquidity Cash Ratio	0.3404
Gearing Debt to Equity Ratio	0.1101
Gearing Debt to Asset Ratio	0.0991
Working capital per thousand Ringgit sale	9.3%
Days to sell the inventory	15
Days to collect the receivables	28
Days to pay the payables	20

My notes based on 2010 quarter 3 report (number in '000):-
- The reduction in the consolidated revenue of approximately 7% from RM349.8 million in the preceding year corresponding quarter to RM325.2 million registered in the current quarter under review was primarily attributable to the reduction of sales volume of metallurgical coke by approximately 3%. Despite the favourable upward trend in the pricing of metallurgical coke and that of the by-products in the current quarter experienced by the Group, the appreciation of the Ringgit against Renminbi of 8% over the comparative periods had led to lower translated sales value in Ringgit term. The average prices of metallurgical coke, ammonium sulphate, crude benzene, tar oil, coal gas, coal slime and middlings during the current quarter under review have increased by approximately 3%, 20%, 24%, 41%, 1%, 27% and 17% respectively in the current quarter compared to the same quarter last year

- In tandem with the reduction in sales volume, the cost of sales for the current quarter under review had decreased by approximately 2% to approximately RM318.9 million compared to RM326.1 million recorded in the preceding year corresponding quarter. However, the increase in the average price of raw material (i.e. coking coal) by approximately 11% in the current quarter compared to the average price registered in the preceding year corresponding quarter was largely offset by the effects of the Ringgit appreciation against the Renmimbi over the periods, thus effectively lowering the translated value of the cost of sales

- As a result of the extent of increase in the average price of the metallurgical coke being significantly lower than the increase in the average price of the coking coal, a lower margin was recorded during the quarter under review. The favourable pricing of the by-products however still proved insufficient to counter the hike experienced on the price of the coking coal. As such, the Group has only managed to record a gross profit of approximately RM6.2 million compared to approximately RM23.7 million recorded in the preceding year corresponding quarter. The Group has registered a profit for the period of approximately RM1.0 million for the current quarter under review as compared to a profit of approximately RM18.5 million for the preceding year corresponding quarter

- The Group’s consolidated revenue of approximately RM325.2 million registered during the current quarter represents a reduction of approximately 5% from approximately RM342.5 million in the preceding quarter ended 30 June 2010. The reduction in revenue was primarily attributed to the unfavourable average pricing of the metallurgical coke and some of its by-products in comparison with those prices registered in the preceding quarter. The average prices for metallurgical coke, crude benzene and coal slimes during the current quarter under review were reduced by 10%, 1% and 12% respectively. These fall in prices were however countered to some extent by the increase in the average prices for ammonium sulphate and tar oil of 4% and 2% respectively in the current quarter under review compared to that of recorded in the preceding quarter (second quarter 2010)

- Cost of sales in the current quarter has correspondingly reduced to RM318.9 million compared to RM331.6 million recorded in the preceding quarter ended 30 June 2010, a reduction of approximately 4%. This was attributed to lower average coking coal price by 8% during the quarter under review compared to that of the preceding quarter

- Since the rate of reduction in the average coke price was higher than that of the coking coal price during the quarter under review, the Group has only managed to report a profit for the period of approximately RM1.0 million in the current quarter under review compared to approximately RM4.8 million recorded in the preceding second quarter 2010

- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.104, estimate PE on current price 0.385 = 37.02

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