I have 5 lots of Hua An, bought at 50 cents, since the 1st day I bought, It go down until today at 37 cents.
Will this news support me to continue hold on to it?
Sino Hua-An International Bhd returned to the black in the second quarter ended June 30, 2010, posting a pre-tax profit of RM4.844 million against a pre-tax loss of RM13.279 million in the corresponding period last year. The return to profitability was after two consecutive quarters in the red, and is due to the continuing recovering trend in the coking and steel industry, albeit a gradual one. In a filing with Bursa Malaysia Securities, Sino Hua-An said its revenue rose to RM342.506 million from RM301.760 million due to the favourable upward trend in the pricing of metallurgical coke and majority of the by-products in the current quarter experienced by the group. It said the average prices of metallurgical coke, crude benzene, tar oil, coal slime and middlings in the second quarter have increased by approximately 35 per cent, 49 per cent, 34 per cent, 51 per cent, and 14 per cent respectively compared with those of the preceding year's corresponding quarter. However, the price of ammonium sulphate has dropped by approximately 16 per cent and the price of coal gas remained fairly constant in the current quarter compared to the same quarter last year, it added. For the half-year period, its pre-tax profit was RM2.362 million against pre-tax loss of RM36.911 million in the previous corresponding period as revenue rose to RM716.098 million from RM612.711 million. Sino Hua-An said the group will continue to focus on its core business activity which is the manufacturing and trading of metallurgical coke and its by-products. Notwithstanding the improved financial performance shown in the current quarter under review, the group continues to tread cautiously in light of the current issues affecting the world economy, it said. "We anticipate that the steel industry (and that of metallurgical coke) may be faced with a challenging environment moving into the remainder of 2010," it added. The group is nevertheless still hopeful of seeing sustainable pricing dynamics both for metallurgical coke and coking coal in 2010 as domestic demand is still expected to be there. Barring unforeseen circumstances, the group is cautiously optimistic of better financial results for the current year. -- Bernama