uncertainties relating to sustainability of gross margin in relation to the existing environment of a declining crude oil prices. leading to decline in selling prices faster than cost of raw materials that gets charged to cost of manufacturing due to a 3 - 6 months product manufacturing time.

uncertainties to how much disruptions to production due to the upgrading program.


uncertainties in buying into a stock famous for wild fluctuations in PL at a time in which it just posted great profits and extremely low PE....low PE stocks, I can buy....extremely low PE stocks never interest me to buy because this kind of share can only lead to disappointments.

aseng...go and buy and lose money...see if I care.....lol

Post removed.Why?

go lose my money in Heng Yuan and Petron...see if I care..........

raider....your record in this forum is bad, very bad....never seen you making a single sen......just admit it.

aseng..I cannot be repeating what I have repeat a few times already.....just go back a few pages in this forum and in Hengyuan forum...if you still don't get it, you never will.....time to give up stockmarket for you.

probability

I participate in this forum because it is young inexperienced people who gets conned by extremely low PE stocks...and you be the piper?

aseng...grow up or forever remain a loser.

you are promoting these as cheap fundamental buys.....next result will see who is right who is wrong......if you want to do mombo jumpo.......learn at least how Radzi do regression analysis on AAX......that is at least believable and logical, and comprehensive.




probability > Jun 26, 2017 02:47 PM | Report Abuse

Actually mammy should maintain his current personality...we need someone to play ping-pong with (though clearly its adult vs a 5 yr old)...

anyway..raider...this is about Petron and HengYuan ...which has huge uncertainties in its quarterly results.

it is not about your favorite subject.

but as usual, I find your judgement is ridiculously bad.

in industry after industry, company after company...Asian champions will continue to eat up their American champions for lunch.




chinaman > Jun 26, 2017 02:31 PM | Report Abuse

waloe... be an asian champion still not enough? wanna fight with american airlines giant with long haul to US. sure boh wan win kui lo america? wakaka.

long haul low cost model WAS unsubstainable.
and AAX intends to change that, AAX shareholders will all be very happy shareholders.

chinaman > Jun 26, 2017 11:46 AM | Report Abuse

Radzi should be a lawyer, defend hard the indefensible. long haul low cost model is unsubstainable.

there is only one worthwhile objective in stock market...to make money.

being raider is stupid

maverick investor makes money.

that is the one and only test that is needed.

maverick investor makes money.

that is the one and only test that is needed.

maverick investor is worth a few hundred million $...that is the ultimate test of success.

yes..the X factor.....

the x factor means understanding that Jaks and Sendai has far less uncertainties than Petron and HengYuan.

the X factor means I continue to buy SCGM despite the lower net margins and continue to buy Vitrox despite the sky high price.

aseng

there are times I have strong opinions...this is one of those times.

I see 4 blind men trying to figure out an elephant.

ooi plays 1 lot at a time and within contra period.....

want to compare with maverick investor?

profits got 2 components...the selling price and the cost price.....

cost has two components...stock valuations and cost of manufacturing charged to manufacturing account.

the statement below has no relevance and throws no light on the next quarter profits...wrong and misleading because the statement is true only if selling prices remain high.





"...Dropping crude price not only has no negative effects on CCS margin, but on contrary it increases the spread (where refined products pricing follow Brent movement via time lag), thus increasing the CCS margin."

no idea why net margin is lower...but I am a buyer , not seller/

aseng

I don't normally bother to post negative comments unless I feel strongly about what I post.......Petron and HengYuan are prime examples.

no idea why net margin is lower...but I am a buyer , not seller/

my opinion...its a nest full of pretenders.


next result will be savage to these pretenders.

4 blind men ...in this case a few blind men.

raid

the only similarity between Xinquan and HengYuan is that both of them are owned and controlled by Chinese citizens.

ooi...what makes money is good
what loses people money is bad....

doesn't matter who.

raid...what makes money is good
what loses people money is bad....

doesn't matter who.

kiasu investors will not buy Jaks or Sendai when they report losses.

But mavericks makes lots of money on buying Jaks and Sendai when they report loss making quarter.


same for Heng Yuan...when Heng Yuan reports bad quarter....that would be a good time to buy HRC , when raid sells.

raider....just wait for next results.....and in meantime, don't make other people follow you to lose more money.

kiasu investors scared of losing money , so must buy low PE high NTA shares....but kiasu investrs always seems to find themselves losing money.......this is an oddity of stockmarket.

what people fear most, they suffer their worse fears.

value investors like ooi, raider, probability....I find these are kiasu investors....just because it appears low PE they must buy even if they do not understand the business or the accounts.

probability

tell me...is it really so difficult to escape from low PE traps...or for raider high NTA traps like Puncak ?

why "value investors" like probability or raider finds it so difficult to escape from value traps without understanding the business or the accounts?

1000 stocks to choose from...but probability must choose Hengyuan which to me only attracts idiots.

ooi

go and sailang HRC...I could not be bothered.

go and sailang HRC...I could not be bothered.


y probability > Jun 25, 2017 09:24 PM | Report Abuse

manmy..i am concern for people who will lose opportunity to make fantastic money..much much more than u.

raid

whether it is statutory closure or non statutory closure, share price will come down from recent highs on great profits when the company announces reduced profits/ loss making quarter.......simple as ABC.

probability...it is none of my bloody business if you lose money.

just don't want others to lose money.

someone posted extracts of the annual report...."investors should look at average profits before making an investment decision....quarter by quarter earnings can be very inaccurate and misleading."

people who buys Hengyuan because it is low PE will soon realise they are buying a high PE stock or even a loss making company for two basic reasons.....
1..$ 700 million is too small a figure for a new plant...It is an upgrading, and upgrading means there will be disruptions to productions.
2. There are timing differences between purchase of crude oil and sales of refined products. In a prolonged period of crude oil price decline, Malaysian system adjust the selling prices of refined products on a weekly basis, while the production cycle is 3 - 6 months. ...meaning , the crude oil charged to manufacturing accounts is 3 - 6 months old crude prices.

China is different. China rarely adjusts their refined products prices. In this environment, they make super profits as their raw materials costs keep coming down while their selling prices remain high.

But raider don't have the IQ to understand me, no matter how simple I try to make it for him.

if idiots insist on losing money , it is actually none of my business.

someone also posted what is in the annual report.....that margins will come down in this environment of falling oil prices as selling prices adjust down while higher raw material prices are charged to PL due to timing differences.....I mentioned this many many times, ...you still don't understand this simple arithmetic?






stockraider > Jun 25, 2017 06:54 PM | Report Abuse

Mammy don simply bull shit loh....!!

stockraider...go read Petron and Hengyuan annual report and announcement before yo simply bluff your way.

have not heard from math teacher for some time.

ever since Sendai refuse to go down.

have not heard from math teacher for some time.

ever since Sendai refuse to go down.

in this environment, where where final product prices are not regularly adjusted......like in China....the refineries makes super profits.

in Malaysia, what happens is selling prices gets adjusted down, but cost of manufactures goes up because crude purchased at higher prices are charged to PL....resulting in falling profits.

the question is ...do you really understand the business and the accounts?

I bet all those who buy just because of low PE do not understand the business or the accounts.

its margin business yes....but subject to timing differences.

so, don't buy just because it has an extraordinary quarter.

and don't sell just because it has a losing quarter.

lets not forget warren buffalo...the bear on airline stocks has turn a bull on airline stocks holding substantial stakes in each of the top 5 airlines in America.

reason......simple, technology , technology and technology....cuts off the middle men, better planes, cheaper fuel, more travels, data analytics means more efficient pricing and revenue per air mile, multiple source of income......in America, airlines earns more by selling air miles to banks, credit card companies and other income than by selling tickets.

looks like a good rewards to risk ratio


and a good analysis of its PL by radzi.

isa is a survivor....guess what is new?