Featured Report: RHB On Sino Hua-An

I got a copy of Sino Hua-An research report. Since I had blogged many times on this stock before, I was rather interested to read what this pro had to say.

Firstly, my past postings on Sino Hua-An can be read here. (Latest posting is listed first)

1. Update On Sino Hua-An
2. Massive Losses Posted by Sino Hua-An
3. Sino Hua An Q3 Earnings.
4. Still Who Wants Huann?
5. Who wants Sino Hua-An?
6. More On Sino Hua-Ann
7. Regarding Sino Hua-An

I was surprised by the 'upgrade'!

As you can see RHB Research upgraded Sino Hua-An to OUTPERFORM. What I am baffled by is the timing and pricing of this UPGRADE. As you can see, Sino Hua-An opening price is at 0.52. And the target price is a mere 0.60.

I was left scratching my head.

This is an EIGHT SEN stock upgrade!

I am very sure sceptics will be baffled and left wondering why RHB would be bothered with such a minuscule upgrade and considering the fact that Sino Hua-An stock priced had rallied rather so strongly since March 2009.

The following chart shows the recent performance of Sino Hua An.

Here is RHB's reasoning for its upgrade on the stock.


And then I was left more confused with what RHB analyst said next.

• Earnings forecasts. We are lowering FY12/09 net profit forecast by 23.0% to RM38.7m to reflect lower average selling price assumptions for Sino Hua-An’s by-products.

WOW!

RHB Research is lowering the fy12/09 net profit forecast by 23% to rm38.7m!!!!!

( Recap: For the first quarter fy2009, Sino Hua An reported a net loss of 23.6 million. See Update On Sino Hua-An )

The stock is estimated to make less money by some 23%.

Yet the stock is upgraded to OUTPERFORM!

Fair value upgraded price is 60 sen.

A mere 8 sen from 52 sen.

So how my dearest?

Are you enjoying what you are reading?

Do you want to buy this stock as recommended by RHB for a gain of 8 sen?