Sino Hua An's Earnings Turnaround

Here's Sino Hua An's earnings.

The turnaround is positive.

Indeed it is.

The balance sheet weakness mentioned in earlier postings highlighted in the posting Massive Losses Posted by Sino Hua-An has seen all round improvement.

(ps: don't start assuming. I have no idea if you can lose money in this stock, ok? )

From the company's notes:

• Review of Performance
  
  For the third quarter ended 30 September 2009, the Group recorded consolidated revenue of approximately RM349.8 million. The cost of sales for the quarter under review amounted to approximately RM326.1 million.
  
  Given the gradual recovery phase experienced in the coking industry since the early part of the year, the Group has managed to return to profitability in the current quarter after recording three consecutive quarters of losses since the fourth quarter of 2008, stemming from the consequences of the economic downturn and challenging business environment in the said fourth quarter of 2008. This was mainly attributed to the spread between the prices of metallurgical coke and that of coking coal that have widened adequately coupled with the gradually improving prices of the by-products during the current quarter under review.
  
  During the current quarter under review, the Group’s revenue reduced by approximately 29.6% to RM349.8 million from RM496.9 million in the preceding year corresponding quarter. This was mainly attributed to approximately 37.9% reduction in the average price of coke in current quarter under review compared with that of the preceding yearcorresponding quarter.
  
  The cost of sales have also reduced by approximately 31.3% to RM326.1 million in the current quarter under review from RM474.5 million recorded in the preceding year corresponding quarter. This came about as the average price of coking coal had eased downwards by approximately 38.1% in the current quarter compared with that of the same quarter of the preceding year. Premised on the above, the Group registered a gross profit and net profit after tax of approximately RM23.7 million and RM18.5 million respectively for the current quarter under review compared to that of registered in the preceding year corresponding quarter of RM22.5 million and RM11.7 million respectively.