ilovehits, thank for your compliment.

Basically I just want to let everyone know that HUAAN is not a goreng-goreng counter. The share price go up is because the company is involving in the Metallurgical Coke business, where the Metal Coke price has surge a lot recently, and this will bring an extraordinary profit margin to HUAAN.

So, this is a undervalue share with the right theme (Raw material for Steel Production) and predictable profit (We can check the Metal Coke price everyday).

rRepost the Q&A i prepared last weeks:-


Q&A session:-

1) Q: What businesss HUAAN is doing?
A: HUANN is producing Metallurgical Coke.

2) Q: What is Metallurgical Coke?
A: Metallurgical Coke is one of the key material used in Steel Production, especially the Blast Furnace.

3) Q: Why HUAAN share price increase 300% in one day?
A: Price increase is because HUANN posted a very very excellence profit, so market realised that this counter has been undervalued.

4) Q: Why HUANN is lost making for the past few year, then suddenly back to Profit?
A: For the past few years, CHINA has too much excess capacity for steel, and this cause the steel price very very low for the whole world. When steel price low, every raw material that related to steel are not doing well, such as coal, iron ore, as well as metallurgical coke. When the selling price of metallurgical coke is low, then all the producer including HUAAN are facing loss. However, situation has change since year, CHINA government start to control the environment pollution, and cut the capacity of steel production. When steel supply decrease, steel price surge up. When steel price up, every raw material related to steel production go up as well. That why suddenly HUAAN make huge profit.

5) Q: I checked the past year record, there is no revenue generated by HUAAN, why?
A: Last year, as the China Government has tighten the rules on environment control, and Metallurgical Coke price is at multiple year low, HUAAN has no choice to make a decision to lease out its production site and facility for 1 years @ RM12mil. This is why there is totally no revenue generated by HUAAN on last year. The lease was expired on Feb'17, and HUAAN has take back factory and production site, that why you start to see it generate revenue start from Mar'17.

6) Q: Is it too late to invest in HUAAN now, since its share price has go up 300%.
A: If you compare the share price, yes, it is too late and too dangerous to jump in now. However, if you look at its profit, you will realised that it is still very undervalue. For example, it quarter profit is 21mil, and now its market cap is only RM174mil. If we assume HUAAN has acheived annual profit of RM75mil, then its PE is only 3 times.

7) Q: It is possible to achieve RM75mil annual profit?
A: Yes, very likely based on current steel price and metallurgical coke price. If you refer to China Stock Market, many counter that related to Metallurgical Coke has their profit increased few fold, and their share price are also increase few fold already.

China AM: Steel futures surge on fire at Bengang BF

China’s steel futures moved up sharply in the morning trading session on Friday September 1 following a fire at Benxi Iron & Steel (Bengang)'s No 1 blast furnace.

Futures closing prices – morning session Shanghai Futures Exchange January rebar: 4,023 yuan ($610) per tonne, up 96 yuan per tonne January hot rolled coil: 4,204 yuan per tonne, up 138 yuan per tonne Dalian Commodity Exchange January iron ore: 580.50 yuan per tonne, up 6.50 yuan per tonne January coking coal: 1,440 yuan per tonne, down 2 yuan per tonne Raw materials Metal Bulletin’s 62% Fe Iron Ore Index stood at $78.91 per tonne cfr China on Thursday August 31, up $2.83 per tonne from a...

Two Chinese steel majors have raised their purchase prices for metallurgical coke by 100 yuan ($15) per tonne, effective Monday September 4 onwards, Metal Bulletin has learned.

Shandong province’s Rizhao Iron & Steel is now paying 2,250 yuan ($343) per tonne for materials with 58% coke strength after reaction (CSR) and 0.65% sulphur, and 2,200 yuan per tonne for those...

Firehawk, you may refer to article below:-

http://www.thestar.com.my/business/business-news/2015/10/22/ram-ratings-reaffirms-aa1-rating-of-indera-persada-bonds/

firehawk, for your information, when Digistar secured this project from the Government, it is not only about the construction of the building, it also included supply of the IT equipment for the entire building, which is worth RM66 mil.

Based on their initial agreement, Government should pay Digistar a lump sum of RM66mil upon completed of the project. This is a one-off payment in addition to the monthly RM3 mil leasing fee.

During the AGM on early this year, Datuk Lee mentioned that the reason why Government delay the RM66 mil is because there are some high tech equipment that may contain radioactive, so JKR is in the midst to arrange for Radioactive Professional to test and certified the machine, that why it cause delay of the payment.

If you refer to Digistar's Balance Sheet, you can see there is always a RM60mil ++ trade receivable for the past few quarter, this is exactly the RM66 mil than pending for Government to pay, and if everything as per planning, Digistar should have already received the RM66 mil in July'17.

Give SSTEEL some time (1-2 week), it will go back to RM2.20 level.
Then, if steel price continue to stay high by end of September, then SSTEEL will continue climb to RM2.50 at least.

firehawk, you can refer to this news:-

http://www.theedgemarkets.com/article/digistar-consider-dividend-payout-upon-receiving-rm66m

While Malaysia are celebrating its long holiday, the Metallurgical coke price in China increase again this few day.

I expect this coming quarter revenue will be above RM300 mil, and Net Profit will be above RM30mil, EPS will be around 2.8sen.

For me, the accumulated losses is not a big issue, as I'm not expecting this type of company to distribute dividend in the next 2-3 years. For me, the biggest concern is:-

This Is a CHINA company, so I can't 100% trust their accounting figure, so I have set a discounted target price of RM0.40 only (my original target price is RM1.00).

Hi paperplane2016, as mentioned above, HUAAN has suffered losses last time is because the industry is not doing well and the Metalurgical coke price are too low until there is no way to cover the cost of production. This is similar to Malaysia steel industry few years ago, especially company like LIONIND where it suffered so many losses every quarter.

However, when the Industry start to change, LIONIND start to posted profit result, and its share price increase from 28 sen to 125 sen. I believe same story will be apply on HUAAN, when its Metalurgical Coke industries start to uptrend, its profitability and share will move together as well.

Remember, HUANN share price used to be at RM1.70, and now it only RM0.155, so please don;t think that RM0.155 is very high.

Q&A session:-

1) Q: What businesss HUAAN is doing?
A: HUANN is producing Metallurgical Coke.

2) Q: What is Metallurgical Coke?
A: Metallurgical Coke is one of the key material used in Steel Production, especially the Blast Furnace.

3) Q: Why HUAAN share price increase 300% in one day?
A: Price increase is because HUANN posted a very very excellence profit, so market realised that this counter has been undervalued.

4) Q: Why HUANN is lost making for the past few year, then suddenly back to Profit?
A: For the past few years, CHINA has too much excess capacity for steel, and this cause the steel price very very low for the whole world. When steel price low, every raw material that related to steel are not doing well, such as coal, iron ore, as well as metallurgical coke. When the selling price of metallurgical coke is low, then all the producer including HUAAN are facing loss. However, situation has change since year, CHINA government start to control the environment pollution, and cut the capacity of steel production. When steel supply decrease, steel price surge up. When steel price up, every raw material related to steel production go up as well. That why suddenly HUAAN make huge profit.

5) Q: I checked the past year record, there is no revenue generated by HUAAN, why?
A: Last year, as the China Government has tighten the rules on environment control, and Metallurgical Coke price is at multiple year low, HUAAN has no choice to make a decision to lease out its production site and facility for 1 years @ RM12mil. This is why there is totally no revenue generated by HUAAN on last year. The lease was expired on Feb'17, and HUAAN has take back factory and production site, that why you start to see it generate revenue start from Mar'17.

6) Q: Is it too late to invest in HUAAN now, since its share price has go up 300%.
A: If you compare the share price, yes, it is too late and too dangerous to jump in now. However, if you look at its profit, you will realised that it is still very undervalue. For example, it quarter profit is 21mil, and now its market cap is only RM174mil. If we assume HUAAN has acheived annual profit of RM75mil, then its PE is only 3 times.

7) Q: It is possible to achieve RM75mil annual profit?
A: Yes, very likely based on current steel price and metallurgical coke price. If you refer to China Stock Market, many counter that related to Metallurgical Coke has their profit increased few fold, and their share price are also increase few fold already.

Some old news to share:-

華安國際（HUAAN,2739,主板工業產品組）這只股的主要業務是甚麼？它的財政報告好像不差，為何股價會那麼低？現在是不是買進時機？

答：（二）華安國際主要業務涉足生產治金焦炭，後者為生產鋼鐵的主要原料之一，其焦炭廠是山東省最大的焦炭廠。它也生產其他副產品如柏油、原苯、硫酸及煤氣等。

這間公司是有利可圖，不過，由於全球經濟不景氣，包括鋼鐵業也受到嚴重打擊，影響鋼鐵原料的需求、價格、及賺幅等，可能是導至其股價走低的原因之一。

截至去年9月為止，這間公司沒有債務，手中尚握有6500萬令吉的現金。

截至2008年9月30日為止，這間公司首9個月的淨利為8419萬5000令吉，比前期的9000零8萬1000令吉略降6.53%。營業額為12億2215萬7000令吉，比前期的6億1935萬8000令吉，激漲97.33%。

注意此公司即將出爐的最新業績表現，料更全面反映全球經濟不景，對業務的影響程度，衡量後，以為是否買進作參考。

Hua-An Group through its wholly owned subsidiary, Linyi Yehua Coking Co., Ltd. is principally involved in the production and sale of metallurgical coke and its by-products namely coal gas, tar, ammonia sulfate, crude benzene, coal slime and middlings. Metallurgical coke contributes 79% and its by-products contribute 21% to our revenue.

Hua-An Group main product metallurgical coke is a critical raw material used as energy source for the manufacturing of steel. The current production capacity of metallurgical coke is 1.8 million tones per annum.
Hua-An Group has its own coal washing facility which successfully commissioned on 1 May 2007. Previously Hua-An Group bought pre-washed coal (more expensive) from raw material supplier and since May 2007 we buy raw coal (which is cheaper) and wash them by our own coal washing facility which has a designed capacity of washing 2.4 million tones of raw coal per annum. The cost saving for coal washing process is approximately 5%.

Hua-An Group single production plant is located at Shen Quan Zhuang Industrial Park, Luo Zhuang District, Linyi City, Shandong Province with a build-up area of 319,014 sqm.

Hua-An Group has a well-trained workforce of 1,500 workers.

Hua-An Group obtained ISO 9001:2000 certification for product quality since 3 April 2006.

@edward, thanks for the update. Hope your wife are okay.

A world class blast furnace operation demands the highest quality of raw materials, operation, and operators. Coke is the most important raw material fed into the blast furnace in terms of its effect on blast furnace operation and hot metal quality. A high quality coke should be able to support a smooth descent of the blast furnace burden with as little degradation as possible while providing the lowest amount of impurities, highest thermal energy, highest metal reduction, and optimum permeability for the flow of gaseous and molten products. Introduction of high quality coke to a blast furnace will result in lower coke rate, higher productivity and lower hot metal cost.

SOUTHERN STEEL is using Electric Arc or Blast Furnace?

Monday will rise another 10 sen.

Look at the Net Profit, it is RM21mil.
Look at the Market Cap it is only RM157mil.

You tell me, where to find this kind of investment?

This is definitely the 2nd HengYuan in the making.

Later KYY come to campur tangan again.

Don't worry, it will move some how.

It will be the second Prestar.

This is nothing related to politic, this rise is purely because people realise the potential of Huann, their business, the current raw material theme, and impressed with its quarter result.

Calling Leoting, urgent!
While we all focus on increase trend of Steel Price, we have omitted the increase trend Coke price.

Look at Huann result, I believe this is not a simply goreng-goreng.
This is similar to last year where steel price start moving, and Lionind start moving from 30sen to now RM1.10.

Maybe we all should go to studying about Coke industry, then come out some detailed analysis during this long holiday.

This will be the Bursa King in coming month September 2017.
Because current market are lack of theme, so this will be the best theme.

PaddyField, don't worry, I'm with you.

Can someone roughly brief me what business Huaan are doing? My understanding is they produce metal coke, and their main raw material cost is coal. Currently, both Coke price and Coal price are increase together, so why we expect next quarter profit will be better? Can someone brief us more.

RJ87, in fact the RM66 mil should be already received in July'17. However, there is no official announcement made by Digistar.

详细的读了DIGISTA的财报，比较了上个季度，个人觉得这个月季并不是真的很差，财务方面很多都进步了，可惜那一笔政府拖欠的RM66mil 还没收到，希望下一季会更好。

请原谅我的乐观，因为我已经陷在里面，没办法，只能往好里想，人生总是有高有低。
如果你还没投资在这个股票，我劝告你别进来。马股里还有千多只股票给你选，别傻傻向我这样陷在里面。

Leoting, I realised that SSTEEL is using Weighted Average method to calculate it stock and cost of good sold.

Normally, there are 3 method available:-

1) FIFO - First in first out
2) LIFO - Last in first out
3) WA - Weighted Average

If SSTEEL is using FIFO, then we all can very sure that Q3 will be very profitable, because Q2 raw material is cheap, and Q3 selling price is high.

But now the fact that SSTEEL is using WA, so the low price material purchase in Q2 will be neutralise with its high price material purchase in Q3, so its average cost might not be as low as our expectation.

For example, by using FIFO, you may estimate its profit is RM100mil. But if using WA, then maybe you should reduce your estimation by 25%-50%, so expected profit should be RM50mil - RM75mil.

The above is just my own finding after studying its QR this morning, welcome everyone with better accounting knowledge come and share your comments.

So, please don't talk about the hill land anymore, Bstead should be 100% aware of the land type before they place the deposit.

I work in listed company before. When a company want to buy a land, the procurement team will have study a lot of information, such as land size, title, location, soil, flat land or hill land, any lake or river...etc. Then they will contact the local valuer and property agent to get many details of land. Then contact their business partner or any reliable party that familiar with that area to understand more about the land and any issue facing there. Then some will event use helipcopter to visit the site.

Once all these work done, then only will arrange real estate agent to contact the landlord, negotiating price...ding dong ding dong few month, then only come to stage to put a deposit, and prepare the S&P.

Since Bstead Plant already place deposit, that mean actually 99% of the work has been done. Now the 1% pending is just to document down everything in a proper documents, make sure everything black & white, so that it fulfil their SOP.

You guys must understand, for Bank to decide invest in CRM, bank must consider from a lot of perspective, as the cost for each unit of CRM is not cheap, and you need to spend a lot of money to integrate it with you bank system...etc, and all these cost may need 3-5 years for bank to recover back it cost of investment. If bank already can foresee that in the next 3-5 years 70% people are not using cash anymore, then I'm pretty sure bank wont continue invest in the CRM machine.

The problem the Opensys facing is technology change faster than it expected!
When Opensys launch CRM, it thought this technology will replace all the ATM within the next few year.
Manatahu fintech is growing so fast, and very soon more n more people will use mobile pay, e-wallet...etc, so less people will use cash.
If you go to China nowadays, you will understand how fast the mobile pay technology, as 70% of the people in city are not carry cash anymore.
Therefore, before Opensys's CRM can replace ATM, it already being replace by fintech.

I think Duta Yap will privatise the company after the land sold to BPLANT, because with RM750mil cash on hand, he can develop the Grand Duta Hyatt on his own.

This Grand Hyatt Duta will be the last hotel in Kuala Lumpur, and the estimated GDV will be around RM2bil.

You can refer to the revised building plan at below link:-

https://s31.postimg.org/l9l3ozbzv/Screenshot_21.jpg

wow, calvin is return with its glory.
Hope to see Dutaland limit up tomorrow.

Leon Fuat factory is located beside the massive development site I-City Shah Alam.
I believe Leon Fuat should have supply steel to I-City, because their location are so close to each other, and it can save a lot of transportation cost, delivery time and warehousing as well.

Nice closing, RM2.00. Next level is RM2.25.

Based on Annjoo result and commentary, very high chances that SSTEEL will post a highest PAT.
Lets countdown and see.

Last chance to buy before fund manager come to grab the share.

Count down to RM2.00.

Dow Jones sooner or later will become Dawn Gone, Darkness arise

Down john drop kaw kaw, Jaks profit also drop kaw kaw, share price sure will jump water.
If want to buy, can aim to queue at RM1.2x

lzz88, The Southern Steel upstream manufacturing facility in Prai Industrial Estate, Penang comprises
two steel making plants with a manufacturing capacity of 1,500,000 Mt/year for billets and four rolling mills for the
manufacture of Wire Rods, Garret Coiler, DBIC and Bars.
Southern Steel also has downstream manufacturing facilities
throughout Peninsula Malaysia.
One of the technological innovations by Southern Steel is the “Easy
Drawing Continuous (EDC)” technology. This allows for constant
cooling conditions that result in better and more uniform mechanical
properties in the steel products manufactured. It also provides
factory operators with better control over the grain growth and
scale formation with the steel products.
Southern Steel manufactures a variety of products that meet
international standard requirements for use in automotive,
construction and industrial sectors.
They have a research development team committed to continuous
improvement and the development of new products to meet market
needs and plant assurance teams to ensure good quality products.

If the short seller short 10 big lot at USD199,999, then now buy back at USD10, then he is one of the richest man in the world d.

Coldinvestor, thank for the example you made.

But I'm still confuse that how to measure how long the trend will going on.

For example, assume Crude Oil has been moving uptrend from USD43 on May'17, until USD60 on Sep'17, and many newspaper / analyst expect Crude Oil can reach USD70 by Dec'17.

At the same time, news come out that Soybean yield dropping, due to El-Nino, and Palm Oil price has been moving uptrend from RM2600 - RM3000 on Sep'17, and many newspaper / analyst expect Palm Oil can reach RM3400 by Dec'17.

Assume now is end of Sep'17, and SOP price is RM4.50 (up from RM3.50), would you jump in to buy SOP based on the above scenario? How you predict Palm Oil and Crude Oil will continue uptrend as per those analyst said? How can we know whether OPEC will suddenly increase production, or suddenly China impose import tariff on Palm Oil, or suddenly EU announce not to consume Palm Oil...etc?

I remember last year December, Palm Oil price increase to above RM3000, many analyst predict this trend will continue, as El-Nino effect will affect western country soybean production, Najib meet China President and China will import more Palm oil from Malaysia..blar..blar..blar. Then few month later, Palm Oil drop to RM2600.

Coldinvestor, do you mind to share more about trend investing?
I'm very agreed on trend investment, but the problem I face is I don't know how to measure how long the trend will continue.

For example, if SOP share price increase from RM3.50 to RM3.80, how I know whether the uptrend will continue or it will reverse back to RM3.50? Even if I make a right decision bought at RM3.80, and it continue uptrend to RM4.50, should I sell or hold?

I have many counter in my portfolio, when it raise 20-30%, I didn't sell it, then it reverse back. I have also have many counter, where I sell it with 30% gain, but it continue uptrend 200%-300%.

Appreciate if you could share more.

就我个人的观点而言，我看好SSTEEL最主要因素是因为我相信只要这个季度再交出盈利的季报，那SSTEEL就会正式摆脱亏损了，它将会有个完整的四个季度的盈利，那时的EPS就会真正的反映着SSTEEL的全年盈利，各大基金/机构就可以出手买入了。一般上，基金在选股方面都会有很多限制，例如不能买有亏损的公司，本益比太高的公司，或该行业未来基本面不看好的公司。再说，本地很多基金经理都是打工的，他们在选股方便都会偏向保守，这里所说的保守不是思想保守，而是说他们只敢投资在那些完完全全符合条件的公司，因为这样一来如果该投资不小心亏损了，他们也不需要负起个人责任，因为他们是完完全全按照基金选股的方针去进行投资的。只要基金/机构投资者进场，那么SSTEEL肯定会向ANNJOO那样，会有一波很强劲的上涨（ANNJOO从RM2 涨到 RM3块多那一波，报纸天天都会看到ANNJOO的新闻，各大投行也看好唱好）。

Sincerely thanks to Leoting, I have been inspired by his analyst and follow him end of last year.
My lowest cost for SSTEEL was 93 sen, and highest was RM1.69, average cost is RM1.24.
But the sad things is I have limited fund, so cannot buy as much as possible.

重新看回过去写过的评语：-

今天的评语是：Digistar每一次下调或横摆时，都是入股的好时侯，因为这一只股票一定是向上爬的，

因为：-
1） 它的收入会越来越好（稳定的concession收入，越来越多的CMS保安收入和酒店收入）。
2） 它有利息开销会减少，因为他的债券每年都会赎回一部分，所以利息只会越来越少。
3） 它可能会派息，因为到2016年12月为止，它的现金有RM60mil，在加上这几个月的concession收入，和将会收到一笔RM66mil的政府付款，所以我预测它未来几季度到财务报表，最少会有RM130mil的现金。这些现金可能会拨个RM9mil来派出RM0.015的股息，以回馈股东在这几年的支持。Datuk Lee 这几年也自掏腰包和用margin买了不少自家的股票，相信他也很需要股息来偿还margin的利息吧。
4） 它去年买了两块地，位于melaka cheng，是属于很好的地点。买地是通过竞标得回来的，按照现在的市值，这两块地保守估计已经升值最少RM7mil了（因为他们标到的价钱很低）。Datuk表示他正在向马六甲政府推介这块地，看看能不能为政府起个什么大厦，然后再用concession的方式租给政府。
5） 很有可能短期内会公布一项大计划，之前公司说过正在竞标1亿2000万令吉谘询服务合约以及5亿令吉建筑合约。
6）现在目前已有Mercury证券推介这只股票，而Icapital也有留意它，如果再来个CIMB 或 RHB 大行推介它，那就爆发了。2011年是CIMB曾经推介它，那是股票上到RM0.60.

5 years ago news.....

（吉隆坡18日讯）立艺企业有限公司（DIGISTA，0029，创业板）即将落实一份5亿令吉合约，为大马电台电视（RTM）进行数码化。这项交易是政府耗资20亿令吉的地面数码电视广播计划的一部分。

　　大马电台电视的数码化，将在2015年前把电视从模拟转换为数码广播。

　　消息说，若Puncak Semangat私人有限公司赢得上述计划，立艺企业则将受委这份合约。

　　Puncak Semangat将着手计划的大部分，在兴建山上发射站设备。

　　5亿令吉合约对立艺企业相当具规模，因后者的现有订单预测只有1亿5000万令吉。

　　该创业板上市公司比对手拥有优势，因它可能是唯一拥有转换模拟广播系统为数码广播系统经验的本地公司。

　　立艺企业董事经理兼大股东拿督李华中早前告诉媒体，该公司将在未来2至3年竞标总值20亿至30亿令吉的合约。

　　李华中持有立艺企业26.61%股权，其中19.56%股份是透过Kenangan Lampiran私人有限公司持有。

　　“透过大马电台电视的数码化，依斯干达区的发展和更多保健设备的建立，我们将在马来西亚非常忙碌。”

　　他也公布立艺企业于亚太地区的扩充计划，因仍然有许多国家尚未采用数码系统。

　　除了Puncak Semangat之外，也有其他团体表明有意，及成立合伙以竞标这项大型合约。

　　大马通讯与多媒体委员会早前已经指示，申请者必须拥有经验丰富的技术伙伴，才能符合投标这项工程。

　　天地通亚通有限公司已经与澳洲广播公司成立一项合作，以投标设计、建造和长期经营数码电视基建计划。

　　而其姐妹公司马电讯有限公司（TM，4863，贸易服务组）也有意参与上述地面数码电视广播计划。首席执行员拿督占占再拉尼受询时指出，该集团‘当然有兴趣扮演重要角色’，因马电讯已经拥有发射站基本设施。

　　其他有兴趣团体尚有明讯有限公司（MAXIS，6012，贸易服务组）与姐妹公司Astro、马统一合作与德国媒体广播系统的联手、以及杨忠礼通讯与美国公司Sezmi的合作。

这次有戏看了。

KYY 手上的股票原来流入了HALLEY SICAV 外国机构投资者手中。

看了HALLEY SICAV 过去几年的表现，你就知道这是一只表现非常标清的基金，而它投资的公司都是以成长为前提。

在看看HALLEYHALLEY SICAV投资过什么马股，随手沾来就有DAIBOCI，SCIENTEX 等等，都是一些快速扩张成长的龙头企业。

本地机构投资者还在睡觉吗？好股都给外国人买完了，还不快点来插旗？

KYY 会回来抢筹码吗？

OTB 会喊买吗？

还有一大堆的网络股神全部会现身出来敲锣打鼓吗？

Warmblood, the one with machine breakdown is AJ lah, not SS.

Sorry, I mean both of them are based on Northern region.

Hi Edward, both Southern Steel and AnnJoo are based on Southern Region, why AnnJoo price is cheaper than Southern by RM30 per mt? Is it because Annjoo has lower cost, so it can sell at lower price; or because Southern product are better quality, so can demand for extra RM30 premium.