I have written several articles on Hengyuan which you can see on my blog.
The price of Hengyuan has been going up rapidly. Within 12 months, it has gone up more than 400%. Especially in the last 8 days, the price has gained more than Rm 3.00 per share.
As I said many a time before, no share can go up indefinitely for whatever reason. I was expecting the price to correct. The correction today is only 14 sen which is an indication that only small weak holders and short time day traders were selling.
Hengyuan’s 1st half year EPS was Rm 1.20, 3rd Q was Rm 1.21 and 4th Q ending Dec will be just as good, if not better than its 3rd Q. Its full-year EPS will be more than Rm 3.60 which will be announced before end of February 2018.
Can you find another share with such good quality selling at such low P/E?
I believe it will continue to go up higher. Based on the large volume traded daily, institutional investors must be buying aggressively.
I believe the price will be Rm 18, selling at P/E 5 when it announces its 4 Q result before end of February 2018.
Since the price has been going up so rapidly, many investors are unable to control their emotion of fear to think logically.
Some are afraid to hold on to their shares longer for the price to go up higher.
Many who read my recommendation dare not buy earlier and waited for the price correction to buy. But the price has been going up higher and higher and the correction was only 14 sen today.
This is a good test of your investing skill.
1 If you do not have Hengyuan, do you dare to buy?
2 If you have some, do you want to buy some more?
3 If you have some, do you want to sell?
My opinion: As I said in one of my articles that I would buy Hengyuan until I have exhausted all my funds. Hengyuan is a major part of my investment and I am not selling now. I want to see its full year result announcement before end of February 2018.