Posted by Equityengineer > 2017-12-20 20:27 | Report Abuse

Can add capacity but expensive. Many will shy away to build extra capacity rather improve efficiency.Besides that only complex type of refineries would be viable in future. In that case no of refineries will decline. The refined crack spread will go up since less capability to produce refinery.

There is many challenges for renewable/clan energy to take over refined product, and definitely till 2020 refined crude oil and gas plays major role in industry and maintaining the energy in the world.

Good sharing on outlook of demand.

Posted by Mohd Fahmi Bin Jaes > 2017-12-20 20:36 | Report Abuse

Change other stock

Posted by cheoky > 2017-12-20 20:41 | Report Abuse

i salute you greatly for providing comprehensive and useful data on oil. thx

Posted by Pusher_Punisher > 2017-12-20 21:40 | Report Abuse

thanks for sharing. very informative. looking foward your next article on HY

Posted by Ricky Kiat > 2017-12-20 22:34 | Report Abuse

thanks ,bro teoCT

Posted by immobile45 > 2017-12-20 23:52 | Report Abuse

3q boss. good review

Posted by Alex™ > 2017-12-21 07:18 | Report Abuse

tq for sharing your homework. alex like.

Posted by Alex™ > 2017-12-21 07:22 | Report Abuse

btw, the human quest in attempt to replace oil with renewable energy is as early as the 90s. From the solar burst, and now the electric cars, one needs to think hard concerning the near prospect of refinery as most of its product caters toward the transportation.

As of now, petrol-run vehicles still prove to be economical and, in fact, less carbon emission compared to that of electric car manufacturing. We'll also need to look into governmental pressure in imposing limitation upon the refineries should they decide to go full green. But full green now is enonomically not feasible, nor justifiable. Think Tesla.

Posted by dusti > 2017-12-21 10:35 | Report Abuse

Good research. Do you know how much hedging is done by Hengyuan?

Posted by stockswizard > 2017-12-21 10:50 | Report Abuse

This stock is the next press metal and Hengyuan!

https://klse.i3investor.com/blogs/huathuathuat/142046.jsp

Posted by kyosan > 2017-12-21 17:46 | Report Abuse

stockswizard This stock is the next press metal and Hengyuan!

https://klse.i3investor.com/blogs/huathuathuat/142046.jsp
21/12/2017 10:50

Looking on aluminium by pressmetal... i can see Arank is better choice, can compare revenue n profit between pmetal,arank and pmbtech... pmbtech already RM3+...Arank need some little profit to boost and follow pmbtech ...then chasing Pmetal of course

Posted by brightsmart > 2017-12-21 17:52 | Report Abuse

and what if all the money that is made goes to China and none for you miserable minorities in Malaysia?

Posted by brightsmart > 2017-12-21 17:54 | Report Abuse

plus the fact this is an old plant without depreciation........low PE during cyclical high earnings is to be expected.

Posted by michaelwong > 2017-12-22 12:07 | Report Abuse

Thumbs up !

Posted by stockraider > 2017-12-22 23:51 | Report Abuse

Average Pe of refinery

1. USA PE 20x

2. Europe 9.5x

3. Asia 12.5x

Pe of msia

1. Petdag 20x
2. Petron 8.5x
3. Hengyuan 5x

Thus fair PE for hengyuan should be 7.5x loh....!!
EPS rm 3.10 loh...!!

Thus fair value of Hengyuan Rm 22.00 Pe 7.5x, this PE is still below asia average of 12.5x mah....!!

Remember Warren Buffet invest in usa refinery Philip 66 which has Pe 24x loh....!!
Just imagine hengyuan TP PE 7.5x is still much lower than Philip66 Pe 24x loh....!!

Thus opportunity to profit from hengyuan loh....!!

Posted by stockraider > 2017-12-22 23:53 | Report Abuse

U must understand 9 out of 3 directors are msian , this are experience directors majority from hong leong who do not want to take risk loh..!!

Have confidence loh....!!

Posted by brightsmart > Dec 21, 2017 05:52 PM | Report Abuse

and what if all the money that is made goes to China and none for you miserable minorities in Malaysia?

Posted by stockraider > 2017-12-23 00:01 |

Post removed.Why?