Despite the group’s revenue dropped slightly by 2.8% to RM5.537 million, the pre-tax
profit jump by 37.1% or RM0.787 million from a pre-tax profit of RM2.119 million to
RM2.906 million mainly due to a one-time gain on disposal of treasury shares
approximately RM1.20 million. (2.9m - 1.2m = 1.7m)

Higher High & Higher low - Uptrend

If you click in to read, you will see this "Disposal of shares to institutional shareholder(s) via off-market transaction."

Personally, i see this is great as the company is so good that it attracts institutional shareholders.

Ocean, your friend happened to pop out in N2N too. Criticized the stock & ask everyone to sell but the price went up.

https://www.datacenterknowledge.com/startups/startup-airtrunk-raises-618m-expand-australian-data-centers-enter-asian-markets

If I can just share my personal view which might be wrong. I personally think that AT will make conservatively 6 million for the next year. This is subject to startup risk if they can't run the new project profitably.

Any suprised, if there is, is if they focus on semicon tester.
In such situation, PE need to be adjusted.

Perhaps previous management has bad record. But I would like to guess that the new management remmunation package is peg to the company's performance.

However, since we do not know how well the new management will perform, there is are still risk.

Hi Diven, would you share us your rational? What do you based on to say it will drop to 0.04. How do you calculate the fair value? Just curious to know. Thanks.

AT make a lose of 1.076m on Q3.

Based on Q3 report, this is due to startup cost of 1.15m for Rieter project and 0.55m for ESOS.
If we adjust back, would it mean AT is making 0.6m on Q3?

As i'm not familiar with metal fabrication and ESOS, could anyone advise if these are one time off cost? Thank you.

https://www.metalbulletin.com/Article/3779750/CHINA-COKE-WRAP-Prices-slip-but-downside-limited.html

Article abstracted from the paragraph, for your information:

A loosening in cokery production restrictions and a plunge in China’s steel market are believed to have triggered the coke price falls.

While production cuts imposed on coke plants in northern China generally intensified for most of December, local media reported late in the month that the biggest coke producing province of Shanxi had suggested that a number of local cokeries run at full capacity.

This was meant to increase output of coke oven gas, a by-product in coke production, to alleviate tightness in the country’s supply of natural gas, which was earlier nominated to replace thermal coal as the fuel for winter heating in the northern part of the country.

If i could share my observation and thoughts with all:

1) based on their quarterly report.
Q2 output = 214,000 tonnes
Q3 output = 210,000 tonnes
Assuming each quarter is 210,000 x 4Q = 840,000 tonnes annual volume.

In their annual report, it is mentioned that oven #1,2,3 combined annual output is Approx 900,000.
while oven#4&5 has additional combined output of 900,000 tonnes

This data, i believe, could suggest that oven #4&5 is not in operation yet.

2) Based their quarterly report current year prospect column. It was commented that the steel demand would remain robust with the OBOR projects supported by their economic growth.

3) China government crack down on illegal producer is beneficial to Huaan in the long term as other illegal output are cut and Huaan volume will increase. (Huaan is a compliant manufacturer, also mentioned in their quarter report)

4) My view are that in the short term, Coke price will drop as illegal producers empty their warehouse before the authority take action against them.

5) After these volume from the illegal producers are consumed, eventually the market should be tight as the illegal producers has no output.

Did anyone did a fundamental calculation on the fair value? Can share?

My calculation suggest fair value is at 0.365.
This is based on factoring 80% more net profit on supercomnet medical net profit (other income) which was contributing only 20% previously.

I did not noticed any new medical equipment contracts. If anyone noticed, pls share.

I may not be right. Anyone has any opinion or other calculation, pls share with us. Thank you.

@buffett888, i agree with your rationale and the 3Q EPS. But i think your 4Q is conservative. Wish to clarify, if there is any report to suggest that their production will cut down in 4Q?

Also, can you share with us how you assign PE 10x?

Aside that, In their recent quarterly report, Huaan say that they are in the midst of ramping up the by products. Believe should contribute some to the net profit and provide some buffer in case of any fluctuation.

Meanwhile, just to share that I did come across a bloomberg report sometime back, saying while china cut back on the steel production, other countries are ramping up to fill the demand. Just for sharing.

Thank you bunnypro.

Hi, Wiseman. Yes, there are many other good counters to invest. But your saying that huaan will be delisted in December. Can you share us your rationale? What makes you say that? Did Bursa issue a statement on this? or did huaan say anything in their report or filling. If yes, I would really thank you for warning us. Pls share with us.

thank you so much.

Meanwhile, in their 2016 annual report, they mentioned they are going to commission #4 & #5 Coke oven with annual output of 900,000 tones.

Whether anyone sees any news or understand if they have started the #4 & #5 oven?

Thanks.

There is this line in the quarter report that is slightly confusing, i was hoping someone could help.

"The average coke price amounted to RMB1,968 per tonne during the quarter under review and the sales volume was approximately 214,000 tonnes"

"The average coal price recorded for the quarter under review was approximately RMB1,167 per tonne. As such, the Group is reporting a gross profit of approximately RM26.1 million in the current quarter under review."

So, last quarter their revenue & profit derive is based on coke price RMB1167 or RMB1968?

Can someone share the fair value/target price for this counter? Possibly with the rationale as well?