Paper profit reduced by 3k.. sad...

Meanwhile, watch the video below to learn about refinery.

https://m.youtube.com/watch?v=2xzYf8IL_FE&feature=youtu.be

Alex,
Good one, Bus has been upgraded to Airplane.

Tung Kwang Yii
"Sold at 11.40. Bought back at 12.80. No regrets. I still can’t find any bursa shares which is better than HY"

Same here, sold 12.50 bought back at 12.80. Decided to not react to lagging and hold till signs of deteriorating business fundamental.

Xiao Beii must be trying to scare people so that he/she can buy at"reasonable" price.
Why not buy now, it is still reasonably priced, and most people here are stationed long term to be resistant against naysayer.

David Lim, Thanks a lot again for the detail analysis. Good work!!

Great post by David for free education again!! Thanks!

Do you think CD is dropping because people are selling it and move on to another counter?

OR - Ordinary Rights

Aseng is protective of the wife : )

@cooling
Yalar, those analyst missed the result and cause all these volatility.

Need your help la, since you comment that these are laoya analysis, would you make some analysis for the Q3 results?

Then we can make better comparison mah~

PETRONM should continue to make profits and gain better cash flow for company growth, should the core fundamentals of the company remained in the same direction as highlighted by the many sifus.

It is only matters at what level the price could go to.

This forum would be busy again when it does.

@ Melvin Ng, Vietnam Factory together with land disposal announced in 28 April 2017 is worth RM22.7 million. See Page 7 of the June 2017 Quarter Report.

Anyone knows if V-power Racing fuel are produced by Hengyuan plant or imported by Shell?
Also, if there were mention of the proportion of revenue contribution?

Thanks to Paperplane, bought some Prestar just yesterday morning after sold some Hengyuan to balance the portfolio.

Just voicing my opinion.
CD warrant would only expire next year, by that time PETRON would have announce the Q3 result which could be another good quarter. CD might go through another roller coaster.

Would the result release not be the following week? (17~18 Aug 2017)

David,
Thanks for your wonderful write up!!

Hi Novice, The better option is to read through sifu Probability's write up here and PetronM.

I try to share the following of my understanding (Please forgive and correct me if I'm wrong).

Heng Yuan (M) is a refinery that produces variety of oil (including petrol) and distribute to Shell.

On Petrol (RON95 and RON97, Diesel) pricing is regulated on weekly basis in Malaysia. A gradual and small change in price of crude oil (no sudden shock) would not affect profit margin tremendously as it would be taken care in the long run through inventory gain or loss.

Refinery buy crude oil on period basis, if crude oil suddenly change in price like now, they get affected where buying high price crude oil, process it and sell at current market value (includng regulated Petrol and Diesel in Malaysia).

https://klse.i3investor.com/blogs/kianweiaritcles/114976.jsp

See above link. This is because (Petrol and Diesel) sold at pumps in Malaysia are following a pricing mechanism which involved Means of Platts SIngapore (MOPS), which is the price where refinery refers to when buying crude oil in Malaysia, Australia and some other countries in this region. Refinery and retailers gain a fixed amount of profit from the Malaysian Petrol Pricing Mechanism. This excludes special petrol products like V-Power Racing and Petron Blaze RON100.

When crude oil tumbles down, so would MOPS. So it would affect the selling price of Petrol and Diesel to Shell petrol retailers. My understanding that this is referred to stock/inventory gain/losses due to difference in pricing.

In conclusion, crude oil price affects refinery (Heng Yuan & PetronM) and retail (PetronM).
But for sudden big drop or gain. Even maintaining this price and stabilize over a period, refinery and retail continue their business as usual without huge effects.