Update On Sino Hua-An

Sino Hu Ann announced its earnings last night. As expected losses were made.

I had blogged on this stock several times already.

1. Regarding Sino Hua-An
2. More On Sino Hua-Ann
3. Who wants Sino Hua-An?
4. Still Who Wants Huann?
5. Sino Hua An Q3 Earnings.

And the last one I wrote was Massive Losses Posted by Sino Hua-An

I was more curious now on the issues I posted on that blog posting. Let me reproduce the table on the issues mentioned.

See the much higher trade receivables?
See the much lesser bank balances?
See the much higher trade payables? (why is Sino Hua-An not paying its trade creditors?)

Here's a screen shot on the same area from Sino Hua-An's latest earnings.

Let's look at issues again.

See the much higher trade receivables? Much improvement! Receivables only totals 78.327 million compared to 154.635 million the last quarter.
See the much lesser bank balances? Bank balances improved to 45.733 million compared to 28.754 million the last quarter.
See the much higher trade payables? (why is Sino Hua-An not paying its trade creditors?) Payables rose to 142.098 million compared to 95.240 million. Now this massive increas would put a doubt on the bank balances issue. Reasoning is simple. If one does not pay its creditors, than one surely will have more money. However, needless to say, all debts have to be paid.

Given these 'facts', would you 'invest' in this stock?

In the posting, Would You Have A Punt On The Steel Stocks?

I highlighted a newsclip where RHB mentioned.

• “While we anticipate Sino Hua-An to report a dismal first quarter in financial year 2009 (1QFY2009), we view the company as the best proxy to invest in the booming steel sector in China, given that the demand for metallurgical coke is tied directly to China’s steel output,” said RHB.
  
  RHB has an indicative fair value of RM3.02 for Ann Joo, RM1.25 for Kinsteel and 60 sen for Sino Hua-An.

Fair value of 60 sen for Sino Hua-An and as mentioned, they HAD already priced or discounted in the possible dismal earnings.

Priced in or priced up...

Let's see would you buy? :p2

The bad earnings, the losses are as expected. Hua-Ann balance sheet looks like there are improvement.

Let's see.. Sino Hua-an closed at 46 sen yesterday. Let's have a look and see how Sino Hua-an has been trading lately.

Like ALL the other steel stock, Hua-An had rebounded from its March lows. (ps did you also see the massive losses posted by Malaysia Steel Works and Lion Diversified?)

But its March lows was 17.5 sen! It's now 46 sen!

How?

But RHB said fair value should be 60 sen!

How now my dearest Brown Cow?

Another buy high sell higher strategy?