Sino Hua-An unit’s crude benzene plant catches fire

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KUALA LUMPUR (Feb 4): Sino Hua-An International Bhd said a fire had occurred at its subsidiary Linyi Yehua Coking Co Ltd’s crude benzene plant, located at Shenquan Village Industrial Park, Luozhuang District, Linyi City, Shandong Province, China.

In a filing with Bursa Malaysia, the company said the fire started at 7.55am (China time) on Jan 31, after an accident during the repair and maintenance work at the plant.

The fire resulted in four fatalities, while three others were injured. The incident also resulted in damages worth RM286,000 (RMB487,000) to its equipment.

Sino Hua-An (fundamental: 1.85; valuation: 1.2) said the fire was contained within the crude benzene section, adding there will be minimal impact to its operations.

“Notwithstanding the above, the company is taking urgent steps to rehabilitate the affected plant and area, so that the status quo can be restored in the soonest possible timeframe.  

“Meanwhile, the company is also currently in discussion with its insurance companies, to ascertain the appropriate compensation,” said the company.

Sino Hua-An closed unchanged at 11 sen, with a market capitalisation of RM123.45 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)