Posted by soojinhou > 2017-05-25 11:10 | Report Abuse

Since the company is highly geared, maybe it's better to use EV/EBIT rather than PE ratio.

Posted by probability > 2017-05-25 13:37 | Report Abuse

a powerful stock promoted with a poor presentation

Posted by Alex Chan > 2017-05-25 15:21 | Report Abuse

Oncoming capex of 1 billion

Posted by speakup > 2017-05-25 16:02 | Report Abuse

u trust China company? then maybe u should buy Xingquan, Msports, XDL.

Posted by speakup > 2017-05-25 16:03 | Report Abuse

China company always show got a lot of cash when actually no cash.
China company always show profit when actually loss.

Posted by notebook > 2017-05-25 16:41 | Report Abuse

問題是,如果下一季虧幾億呢? 報喜不報憂

Posted by jackfruit > 2017-05-25 17:24 | Report Abuse

Made 93sen a share but why cash flows negative.

Posted by probability > 2017-05-25 19:36 | Report Abuse

they had increased their inventory stock pile..with appreciation of crude price, next qtr results should be even more explosive if the current refinery margin is maintained

Posted by LA777 > 2017-05-25 19:51 | Report Abuse

Yes, agreed with probability. Good to keep for mid term.

Posted by Daniel Yap > 2017-05-25 22:25 | Report Abuse

@Speakup, china company have lots problem no doubt on it. But Heng Yuan in china is a giant size company, i dont think they will do any hanky panky things to spoil their company reputation.

@Notebook,我观察了零售价，原油价格和他们的储存量（4和5月），Heng yuan在下一个季度近乎不可能做亏钱，最坏的预算只是肯能赚少了。（如果没有任何重大时间意外发生的话，比如国家汽油政策重大改变，打仗，原油价格大起大落之类）

Posted by Jay > 2017-05-26 08:57 | Report Abuse

I think hengyuan by PE is definitely cheap but there are a few factors working against it

1. not every investor can take pure oil refiner's earnings volatility. crack spread is good now but can change anytime
2. china companies reputation is too bad in Malaysia already, most fund managers won't buy to avoid getting query
3. they already guided will need to spend RM1b in 2018, shut down the plant to upgrade to comply with regulations. so medium to longer term investors may shy away from it
4. high debts and cashflow not as strong. the net debt will only get worse with the RM1b capex upcoming

fair PE is anyone's guess. I don't have hengyuan but happy for hengyuan shareholders as well. just be aware of the downside risk

Posted by dusti > 2017-05-26 09:21 | Report Abuse

Company with consistent management has shown capability in results. Good enough for re-valuation of share price, upwards of course.

Posted by paperplane2016 > 2017-05-26 14:36 | Report Abuse

Jay has fair comment here

Posted by pakatan_harapan2 > 2017-05-27 14:26 | Report Abuse

Talk and talk no use. When can I get dividend? 20 sen can get?

speakup China company always show got a lot of cash when actually no cash.
China company always show profit when actually loss.
25/05/2017 16:03

Posted by stockmanmy > 2017-05-27 14:28 | Report Abuse

Heng Yuan no dividend .

got rights issue....lol

Posted by probability > 2017-05-27 18:27 | Report Abuse

actually one need not worry about HRC's debt at all....why?

its inventory is liquid....if its desperate for cash it can always reduce its retention volume and convert them to cash.

Note its inventory value: 1.05 billion
Receivables minus Payables = 0.35
Total liquid assset = 1.4 Billion

Its interest bearing liability is exactly = 1.4 Billion

i dont see worries at all.

Posted by probability > 2017-05-27 18:30 | Report Abuse

Forget to add 0.34 Billion cash reserved it has.

Posted by gladiator > 2017-05-29 23:49 | Report Abuse

Hengyuan is not those China company as you see in Xingquan, Msports, XDL these are the real China Company base in China but listed in Malaysia. Hengyuan should be call A China run Malaysia company where its HQ in Port Dickson.