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【The Fire of Heng Yuan is just the beginning?】

😑 Main point is at last 4 paragraphs if you lazy😑

Why sky 🌥🌥🌥 is the limit for Heng Yuan and Petronm?

There are 2 main factors that push their share price up high.

🔥Factor 1: Continuous Uptrend of Crude Oil Price

In year 2017, both Heng Yuan and Petronm reached super duper all time high, from RM3 to RM19!  Petronm we will put aside first, we will take Heng Yuan to explain the entire story 🥱🥱.

BTW, Heng Yuan is Shell, the petrol your car 🚗🚗 drink.  

Alright now the story starts, I will try to make the story short but with sufficient info.😚

💥Aug 2016, oil price dropped until super low at USD 40🌠.  But 8 months later, thanks to OPEC cut oil supply, oil price manage to fly ✈️to USD 74.  A rise of USD 34.  

Imagine 🧠, if crude oil price is forever on uptrend, the previous month you buy the oil inventories at USD 40 but this month you able to sell at USD 50.  This is an investment of 25% gain!😳😳😳

Heng Yuan profit was able to reach around RM 1 billion in that year (RM330mil in previous year).  😳😳😳✈️

Consequently, Heng Yuan share price started their journey to the sky🌥 from RM 2 in Dec 2016 and reached their peak at RM 19 🌈in Jan 2018, before their QR was released in a bad shape 🤮💩and their share price dropped from RM19 back to RM2 🌄 🌄🌄.

Story ends🧐

🆗 Now lets us look at current situation.🧐🧐🧐

Crude oil price in March 2020 is USD 18 at its lowest, thanks to Covid-19😈😈, and rebounded to USD 40 in June.  

After June, MCO is lifted and people is allowed to drift their car🚗🚗🚗 on the road again.  Oil consumption in Malaysia suddenly got much higher.  🆙

Now, with China 🇻🇳 oil consumption resumed, US 🧔 still under election (thus NO policy like MCO will be introduced soon), OPEC is considering to control oil supply and India👳‍♀️👳‍♀️ who no one cares about covid-19, will you think the crude oil price will keep going up 🆙?  

If yes, will you think Heng Yuan will be as profitable as that in 2017?

Remember the lowest price of Crude Oil in year 2016 is USD 38 and this round the lowest price is USD 18.  

Of course, Heng Yuan profit margin will still rely on oil price set by Malaysia's government🧛‍♂️🧛‍♂️🧛‍♂️. 

But, when crude oil price rises 🛫, the government will usually set the price higher, unless Malaysia government is under election🤦‍♀️🤦‍♀️🤦‍♀️.

Main point: With the inventories ⛽️⛽️⛽️  they bought at very low price during global 🌏lockdown period, the continuous rise in oil price will benefit Heng Yuan a lot.

🔥Factor 2: The Continuous Downtrend of U.......
If this posts manage to reach 50 likes, we will share what is Factor 2 that keeps Heng Yuan going up.  This factor is also one of the major reasons why Glove stocks are shitting non stop.

The share price will go up or not, we don't know.  No buy sell recommendation.  Simply share.     👣


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