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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just for your info, with no further comment required ......

dramatic Beijing shares crash on way, Greenspan warns ...... sharp rises are "clearly unsustainable"

cynic certainly is - however when Greenspan warned of "irrational exuberance" in 1997 the bubble ran another couple of years....to call the top is also dangerous.

merely pased it on for what it is worth .... originally posted it on WCC for certain bad tempered person on their ...... hoping he will eventually rise to the bait like a lazy chub ..... or do i mean chump?

no problem cynic, you're quite right to do so...risky old game! When to hold 100% cash is the golden question (and maybe which currency)

HAIK will go much higher...very good company...Greenspan often gets it wrong too. He is only human. And getting quite old too. Like some of us. ; )

HaiKe Chemical Group Ltd.
24 May 2007


HaiKe Chemical Group Ltd.

UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2007

HaiKe Chemical Group Ltd ('HaiKe' or the 'Company'), the AIM quoted (AIM:
HAIK) petrochemical and speciality chemical business based in China, is pleased
to announce its unaudited results for the first quarter ended 31 March 2007
('2007Q1').

The results for the first quarter ended 31 March 2006 ('2006Q1'), which are
set out below, are those of the combined results of the Company and its
subsidiaries.

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)

- Basic and diluted earnings per share increased 600% from US 2 cents to US
14 cents

- Successful admission to AIM in February 2007 ('Admission') raising
approximately $17m net of costs and expenses

- Expansion of heavy oil catalytic cracking and isopropyl alcohol production
facilities commenced

Mr. Yang Xiaohong, Executive Chairman, said:

'During the first quarter of 2007, we continued to see strong growth to both
revenues and profits. In order to continue this growth, and as outlined at the
time of our IPO, the construction of the heavy oil catalytic cracking
facilities, together with the expansion of the isopropyl alcohol plant, has
commenced; both are on schedule. We are confident that the increased capacity
brought by these projects will enhance further our growth in the near future.
In addition, we will continue to focus on the high-margin areas of speciality
chemical and biochemical businesses, where we see considerable opportunity to
deliver further growth and value.'

For further information please contact:

HaiKe Johnson Lau, Chief Financial Officer +86 546 8289173
HansonWesthouse Tim Metcalfe / Anita Ghanekar +44 (0) 20 7601 6100
Cardew Group Rupert Pittman / Shan Shan Willenbrock +44 (0) 20 7930 0777


First Quarter 2007 Results

Total revenue increased by 28% from $57.9m to $73.9m in 2007Q1, when compared
with the same period for the previous year. On a segmental basis, the sales of
petrochemical products in 2007Q1 increased by 15% from $48.6m to $56.1m, as a
result of improved operating efficiencies. The sales of speciality chemicals in
2007Q1 grew by 87% from $9.1m to $17.0m due to increased market demand. The
growth in biochemical revenue is significant in percentage terms, if not yet in
overall terms, having increased by 300% from $0.2m to $0.8m in 2007 compared
with the same period for the previous year.

Cost of sales increased by 21% from $53.7m in 2006Q1 to $65.0m in 2007Q1, due to
increased sales volume. The incremental selling prices of the petrochemical
products were higher and this contributed to an improved gross margin in the
first quarter. In addition, the increased weighting of sales towards the
high-margin speciality chemical and biochemical products contributed to the
improved gross margin of 12.1%. Sales and distribution expenses fell by 17% from
$0.7m in 2006Q1 to $0.6m in 2007Q1 as a result of the tightened control over
freight charges and promotion costs for speciality chemical products.
Administrative expenses increased by 33% from $1.2m in 2006Q1 to $1.6m in
2007Q1. The increase included a non-recurring share-based (non-cash) payment for
a director which amounted to $0.2m. Furthermore, additional administrative costs
were incurred as a result of the Company becoming publicly listed on AIM in
February 2007.

Operating profit increased by 169% ($4.4m) from $2.6m in 2006Q1 to $7.0m in
2007Q1, which is in line with the growth in the profit before income tax of
$4.0m or 222%. The gross margin improved from 7.2% in 2006Q1 to 12.1% in 2007Q1.

Tax exemptions were granted for three subsidiaries, Hi-Tech Chemical, Hi-Tech
Spring and Hi-Tech Shengli, following the restructuring of the Company into a
foreign owned entity in late 2006. This resulted in income tax falling by 91%
from $1.1m in 2006Q1 to $0.1m in 2007Q1.

Net profit (after minority interests) attributable to equity holders increased
by 650% ($3.9m) from $0.6m in 2006Q1 to $4.5m in 2007Q1.

Basic and diluted earnings per share increased 600% from US 2 cents in 2006Q1 to
US 14 cents in 2007Q1.

Business Highlights

In the first quarter, we completed Admission to AIM and successfully raised
approximately $17m (net of costs and expenses) for our planned expansion in
petrochemical and speciality chemical businesses. Our successful IPO has not
only enhanced the future prospects of the Company but has also provided the
opportunity to diversify the product range, particularly within the speciality
chemical business.

During the first quarter, we have also acquired additional inventories and have
increased prepayments to secure the sources of crude oil and other materials,
which have resulted in a temporary increase in short-term loans.

We have commenced construction phases of the previously detailed expansion
projects. It is expected that the construction and testing phases will be
completed by the end of 2007 and these facilities are expected to generate
further revenues and profits to the Company in 2008.

Outlook for Second Quarter 2007

Trading in April is in line with our expectations, and on a like for like basis,
the performance of both the petrochemical and speciality chemical businesses are
showing improvements on the comparable period last year.

We are confident of achieving further growth in both revenues and profits in the
remainder of 2007. We anticipate that this growth will be driven principally by
our existing areas of business supported by increased domestic demand for our
products.

I've had a go at calculating future EPS, based on the current 38.4m shares in issue.

Current EPS would be 11.79 cents/share.

x4 = 47.16 for the full year.

divide by 2.00 for Sterling = 23.58p EPS for full year 2007.

With SP at 200p, that's PE 8.5.

Please feel free to disagree.

Kicking myself for selling (was clearly not having one of my better days when I made that decision!), but might make up for it by having a T+25 play tomorrow.

Funny how the stock traded in a tight range today, though - pretty much within the spread of 196/200.

Good luck to all.

FWIW, the house broker predicted FY 2007 EPS of 19p a share at the beginning of Arpil. I guess the Q1 results warrant a rerating?

End of waffle - as of tomorrow I'm back on board!

ST out.

7p EPS for Q1 (07) annualised = 28P plus capacity plans completion kicks in around Oct. 07 = full year? = 30p EPS. Petrol price limit removals by state may add around another 2 or 3p to that full year figure. = tops = 32P EPS for 2007. thats a prospective pe of around 6.5 for future earnings growth of around 95%. Cheap as chips. Speciality chemicals side expansion - excellent growth

Current accounts state margin improvements to around 12.5% from 8%..pricing power indications - good sign

debt needs to be paid down this year though - thats the only weakness.

high barriers to entry - high capex.

no position as yet but looking at it seriously

f18

while 8.5 may be a fairly modest p/e, do remember that this just after Q1 so to extrapolate same for full year MAY be brave especially if you think about 300 is the target ..... at least today had good volume to support, which is more than can be said for yesterday (17k!)

F18, that's great, but you haven't taken account of the increased number of shares resulting from the flotation (Q1 figures were calculated using average number of shares in issue, which is a false friend). That's why my figures use quarterly earnings of just under 6p.

Cynic, 300p would be nice but for my purposes around 15% over a couple of weeks would suit :o)

Yes, I've turned into a short-term share-shark!

I believe that once new capacity is taken into account, Hanson Westhouse are expecting sales to be in excess of US$500m for 2008 and we should also continue to benefit from favourable tax rates for the next few years.

sensible chap soul* ..... i think all should also remember that though there are 40m shares in issue (i think i have that right), only 30% of these are actually "free float", thus severely restricting liquidity.

Greyhound, Hanson's estimate for 2008 EPS was 33p, but could also be in line for an upgrade?

Cynic, thanks. But with only 30% of the stock in free float, do you think the MM's will be able to cover my order? ;o)

(They did - got in at 200p dead. And the SP hasn't moved! Only 25K traded so far. Slow day ahead? Wait for the broker upgrades!)

Expect this to reach 250p within months or weeks.

Thanks Mitzy - that's certainly what I am hoping for :o) The fundamentals appear supportive (otherwise I wouldnt have got back in), so let's hope reality plays out that way!

Very small mention on back page of FT today but nothing to really light the fire!

Good call soul traders, lol, I thought is was just me that crashed shares.

Chuckle - nope! Anything I look at and decide is too pricy will add a minimum of 50% within a week (same goes for anything I sell!) and anything I buy will have the a*se ripped out of it until I sell, at which point the first part of the above Murphy's law will kick into effect.

Okay, that's not quite true - I have done well one one or two things recently, but have had more than my fair share of bad timing. Still, you live and learn, I hope.

Am sure that HAIK will recover given a new broker estimate (pleeeeze??!!) or some concerted insitutional buying.