********** May continue uptrend on breakout: Hankore. Share price 0.119.

Sent: Monday, February 17, 2014 11:40 AM
Subject: ************ May continue uptrend on breakout: Hankore. Share price 0.119.

 

Hankore has staged a strong breakout above the channel resistance downward sloping line last Friday. Quite a convincing breakout seen on Top volume previously. This could mean a reversal of the short term down trend. Next resistance to watch is the psychological 0.120 level which is also the high for today. At this price level it has also lifted above the 20 DAY Short term MA which can signal strong short term momentum. A break above 0.120 can pave the way to 0.125 which was the previous high in Jan last month. Lets see whether sellers at 0.120 get cleared out?

Stop loss at 0.114

 

 

News – 17 February 2014

*HanKore: 2QFY14 net profit rose 20% y/y to Rmb29.4m as revenue surged 245% to Rmb197.9m on the back of higher contruction revenue of Rmb116.1m (+12-fold) arising from work performed in Xianyang, Yangzhou and Nanjing Liuhe plants, maiden contract revenue of Rmb25.5m and recurring water treatment income of Rmb56.3m (+18%). Gross margin eased to 39% from 51% due to higher construction mix. Bottomline was weighed by higher admin (+52%), repair and maintenance (+385%) and finance expenses (+35%), coupled with tax increase attributed to newly acquired Jiangsu Tongyong.