Sharp rise this morning in this Chinese oil refinery company. Tipped over the weekend in Small Company Share Watch to be the next ReneSola. Changes in the way pricing operates since China joined WTO is set to change the company dramatically, plus results in the coming weeks could surprise on the upside.

www.haikechemical.com

Quarter 1 update

First Quarter 2007 Highlights

- Total revenues increased by 28% to US$ (or '$') 73.9m (2006Q1: $57.9m)

- Petrochemical revenues increased by 15% to $56.1m (2006Q1: $48.6m)

- Speciality chemical revenues increased by 87% to $17.0m (2006Q1: $9.1m)

- Biochemical revenues increased by 300% to $0.8m (2006Q1: $0.2m)

- Gross margin improved to 12.1% (2006Q1: 7.2%) to $8.9m (2006Q1: $4.1m)

- Net profit after tax increased by 625% to $5.8m (2006Q1: $0.8m)

- Net profit (after minority interests) increased by 650% to $4.5m
(2006Q1: $0.6m)





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It's not so much the inflation rate impacting business but the price of crude. As a means of countering this, as indicated in their statement yesterday they are able to focus on the higher margin areas in order to balance the petro side but are still confident of meeting their expectations. The new facility is on track however and price of residual oil is less than crude, so there will be further benefits here.

114p now.

Kin'ell, Eugene Wong knew what he was doing when he sold out at 1.90p, 1.88p and 1.84p..doh!!

perhaps i am looking through yellow-coloured glasses, but it does seem that so many of these chinese stocks, so strongly touted by a good number on this BB, are being or already have been walloped - e.g. SOLA, HAIK, WCC and even TAIH ..... i know the markets in general are pretty freaky at the moment, but the low liquidity of these stocks + the (now) general view of chinese stocks makes these reactions of little surprise, to me at least

It has been a dismal performance but I'm reluctant to go yet despite losses. It's somewhat tempered for me by my gains in shorting Sola. Perhaps hindsight will prove me wrong but I would have thought around here we're overdue a move higher. Having spoken to the CFO I'm still reasonably confident over the medium term. Even holding something like Alliance and Leicester is a risky business these days...

99p today. Time to cut losses.

for goodness sake guys!! ..... what is with you?? ..... why did you not cut your losses before? .... the writing has been on the wall for a while .... this is another of these damn chinese stocks into which so many of you have allowed yourselves to be suckered when clearly from day 1 there was limited free market and liquidity.

I'm already out but should have stuck with rigid stop-loss. C'est la vie!

glad to hear it, though i agree it is sometimes tough to obey the discipline ..... could point the finger at myself re TMC which not so long ago was running at a really good profit, but has now been sent to the dungeon to contemplate its sins against humanity.

I still think it is a good company but generally I'm changing my view from being a bull to thinking that the real turmoil in the markets is yet to happen. Recession maybe.

It doesn't always work to cut your losses, I bailed out of sola when it dropped from 234p to 181p, only to see it go to over 600p !

True but that was only some 22% fall on thoses prices. I still think the fundamentals are good and the oil price doesn't effect the company as severely as being interpreted but I don't see any support now from a charting perspective. If we do tumble I may revisit....

and SOLA has today struggled back up to 300 ..... in fact, by judicious trading (one i got right almost the whole time by good fortune) there was a lot of money to be made in both directions

HAIK is 87.5p today.

HAIK is shit ...... SOLA merely tries to emulate!

Total shite...it smells...HAhaha

hlyeo98 suggest you read your posts 27 & 28 great company!!

not a fair gibe ..... back in May the prospects for the company and sp looked very rosy, as was (briefly) proven ...... however, things change, as is now the case here ..... a similar parrallel could be drawn with NRK!

I'm no longer a holder and have lost money but I don't believe it is a bad company. It is actually performing very well and is expanding its high margin speciality chemicals business. It has been effected by the rising oil price however I've spoken to management on a number of occasions and this is where they could have better educated the market place as they're able to switch products so that they are not so greatly effected. It will probably fall further but I wouldn't write it off.

She's away, can't buy any now!!!!!!