MAP Technology's office (above) is in UOB Plaza 2 while its manufacturing plants are in Thailand and elsewhere in the region. NextInsight photo
WHAT A highly profitable week it has been for investors of a number of stocks, including:
* MAP Technology: A most improbable multi-bagger, the stock soared 50% yesterday to 9 cents from its theoretical x-rights price of 6 cents. Prior to going x-rights, it had jumped 100% from 13 cents to 26 cents within three weeks. Read our story and forum postings.
* Sinotel Technologies: A stock that’s benefiting from wider market awareness of the multi-trillion-dollar 3G rollout in China. Read our latest story and forum postings. * Wee Hur: This construction stock shot up 20% in the past week to 55 cents. Yet, it’s not well known in the stock market, so read our story here.
China steel sector on another roller coaster ride
Saturday, 22 August 2009
Steel-hungry industries like shipbuilding often frustrate supply-demand forecasts due to their heavy reliance on bulk order-based purchases. Photo by Andrew van Buren
CHINA’S POLICYMAKERS and industry players are striving to adjust policy based on the real-time, on-the-ground supply situation for steel so as to prevent instability in the pricing regime for such a key industry.
This is even more necessary as the country’s steel sector is once again flirting with pricing volatility as it climbs onboard for yet another rollercoaster ride.
RENHE digs in, and builds subterranean shopping centers
Friday, 21 August 2009
Undergound air raid shelter turned into a Renhe shopping centre.
RENHE COMMERCIAL Holdings Company Ltd (HK: 1387) is China's largest non-state-owned developer and operator of underground shopping centers.
It has been using to full advantage its facilities built as officially approved civil air defense shelters to also serve the needs of increasingly wealthy Chinese consumers since its first such subterranean complex opened for business 17 years ago in the northeastern city of Harbin.
A senior executive with the Hong Kong-listed firm recently spoke with NextInsight, Aries Consulting and a group of Greater China fund managers on the company’s strategic locations and future plans. Click here.
DRYDOCKS WORLD-SEA delivers 5 vessels from Batam yards
Thursday, 20 August 2009
This cement carrier spans 170 metres long and is of 30,000 dwt. Photo: DryDocks World-SEA
This is the ENDEAVOUR, which now has emerged as the world’s largest vessel of her type.It is a fully pneumatic self discharge cement carrier.
It spans 170 metres long and is of 30,000 dwt, and was built in the Batam shipyard of Drydocks World – Southeast Asia (DDW-SEA).
Formerly owned by Labroy Marine and Pan-United, the shipyards of DDW-SEA have delivered four other vessels recently, it was announced today. Read more here.
ASL MARINE's net profit at $71.1 m for FY09
Thursday, 20 August 2009
Source: ASL Marine
ASL Marine has had a good streak over the past few years during the shipbuilding boom. The outlook, however, is much more subdued.
What’s good for the company is that its current orderbook is $523 million and will keep its shipyards in Batam busy till end of FY11 (ending June 2011).
Click here for what the chairman told analysts yesterday evening, including the bright spot - shiprepair - after announcing $71 million in net profit for FY09.
AusGroup stock price gains ground after analyst upgrade
Written by Sim Kih
Thursday, 20 August 2009
Upgrade to 'Buy' with fair value of 70 cents.
OCBC INVESTMENT research analyst Meenal Kumar upgraded AusGroup from ‘Hold’ to ‘Buy’ yesterday, after the mineral resource infrastructure solutions provider posted FY09 earnings that exceeded her estimates.
About 20 analysts and investors attended the results briefing held at Fullerton Hotel after the market closed on Tues. The stock gained 1.5 cents yesterday.
Scene on Saturday afternoon at Sebastian's seminar. Photo by Leong Chan Teik
OVER 100 people paid a fee and packed the room in HDB Hub to listen to, and question, Sebastian Chong for about 2.5 hours.
Some jotted down notes, some typed into netbooks and a few keyed into their Blackberries as Sebastian, a retired accounting professor, gave his 2-cents' worth on a long list of stocks, and highlighted his favourites.
The Q&A session was particularly lively when the topic was a stock that looks set to benefit from the 3-G rollout in China - but the company takes a long time to collect its receivables. Read more here.
ABTERRA on acquisition spree as it transforms into mine owner
Tuesday, 18 August 2009
Abterra used to depend on trading of commodities for its profit but now is transforming into an owner of mines.
JUST THREE months ago, Abterra Ltd announced the RMB 188 million purchase of a 49% stake in a coking coal mine in Shanxi province which has access to 50.3 million tones of coal.
Last night (Aug 17), the Singapore-headquartered company said it has entered into a sales and purchase agreement to acquire a 30.6% stake in Shanxi Lingshi Fuyuan Coal Co.
This is its third coking coal mine. Read more here.
BREADTALK, CHINA ZAINO, INDOAGRI: What analysts now say .....
Tuesday, 18 August 2009
Kim Eng Securities' forecast for BreadTalk.
BREADTALK is raking in the profits, with a rise of 54% quarter on quarter to $3.35 m in Q2. That’s more than a $1 m in profit every month, and Kim Eng Securities has just raised its target price for the stock.
Crude palm oil is also a winning food (or raw food, to be exact) as Credit Suisse raises its target for IndoAgri. China Zaino, a luggage and backpack manufacturer, also gets the thumbs up from BOC International in Hong Kong.
Fund managers and NextInsight's Andrew Van Buren (far left) meet China Pharma's Eddie Chak.
CHINA PHARMACEUTICAL Group Ltd (HK: 1093), one of the largest drugmakers in China, is adjusting its output to chase those products with the most promise going forward -- vitamin C and finished drugs.
The Hong Kong-listed firm saw revenue and gross profit from its vitamin C series products nearly double and triple last year, respectively, which helped offset price collapses for two other product categories: penicillin and cephalosporin.The company now has a global market share of over 20% for vitamin C.
Executive Director Eddie Chak met NextInsight, Aries Consulting and a group of Greater China fund managers last week in Hong Kong. Click here to read more.
SARIN TECHNOLOGIES suffered its third consecutive quarter of losses in the Mar-June period (US$837,000) but the silver lining was the positive cashflow from operations amounting to US$1.4 million.
In addition, Q2 saw a quarter-on-quarter jump in revenue. Will Q3 or Q4 see a profitable turnaround?
Read what the Israeli chairman told NextInsight when he was in town last week here.
'Buy' and 'Outperform' calls maintained despite cash concerns
Written by Sim Kih
Sunday, 16 August 2009
Backpack market is saturated but luggage trolleys will drive growth, says executive chairman Chen Xizhong. Photo by Sim Kih
ANALYSTS maintained their ‘Buy’ and ‘Outperform’ calls on China Zaino after its 2Q09 analyst briefing on Fri, despite nagging investor queries on its cash management.
CIMB-GK’s Germaine Khong maintained her target price at 37 cents, while UOB Kayhian maintained its target price of 35 cents.
The leading Chinese maker of heavy-duty bags last closed at 25.5 cents, with upside of 41% to the analysts' consensus target. Read the management's reponse to investor queries at the briefing here.
Record 1H revenue & profit for TECHCOMP
Saturday, 15 August 2009
In past years, except for 2008 when Techcomp was hit by forex losses, the 2nd half typically accounted for more than 80% of full-year profit.
TECHCOMP HOLDINGS has just reported record revenue and profit for the first half of this year of US$39.8 million and US$1.4 million, respectively.
The profit figure looks small? The second half typically contributes a large percentage (in excess of 80%) of the full-year figure, as the chart on the right shows.
Read more about this company’s presentation to analysts yesterday (Aug 14).
YONGNAM, YANLORD: What analysts say now ....
Friday, 14 August 2009
Yongnam's financial snapshot by Credit Suisse
YONGNAM’S interim profit jumped 22% year-on-year, as it worked on iconic projects such as the Marina Bay Sands Integrated Resort and he New Delhi International Airport.
Suitably impressed, Credit Suisse has raised its target price for Yongnam stock from 30 cents to 35 cents.
Yanlord had a strong set of results but Citigroup and JP Morgan analysts have divergent views on the stock. Read more here.
Consumer demand is coming back, says Best World
Written by Sim Kih
Thursday, 13 August 2009
Executive director Huang Ban Chin is cautiously optimistic about the recovery in consumer demand. Photo by Sim Kih
***Best World closed 1.5 cents higher (+4.7%) at 33.5 cents today.
AFTER THE shock drop in sales during 4Q08, things are beginning to look up for direct seller of consumer health and beauty products, Best World.
It chalked up net profit of S$3.3 million for 2Q09, up 61.6% compared to 1Q09.
And it sits on $35.9 million of cash - what a big pile for a company with a market cap of $69 million (based on stock price of 33.5 cents)!
Executive director Huang Ban Chin told analysts yesterday that he expects a steady recovery of revenue.
Read about the discussion here and find out why Kevin Scully, chairman of NRA Capital, likes the stock.
FIRST CHINA FINANCIAL: 'Celling' itself to a wider audience
Thursday, 13 August 2009
Mr Wang Wenming (right), chairman and CEO, First China. Photo by Andrew van Buren.
FIRST CHINA Financial Holdings (HK: 8123) plans to take its financial information to a much bigger audience - by empowering investment-savvy subscribers with a full range of brokerage, stock information and research, corporate finance solutions, wealth management and direct investment services to subscribers through the power of their humble handsets.
And the Hong Kong-based financial services firm has at its helm an energetic Chairman, Mr. Wang Wenming, who is also Director and CEO of First China Securities Consultancy (Shenzhen) Co, one of China’s leading stock information services companies.
NextInsight and Aries Consulting last week organized a group of fund managers to visit Mr. Wang in his Hong Kong office, which towers high above Victoria Harbour. Click here to read more.
Hi-P's ROE tops larger peers
Written by Sim Kih
Wednesday, 12 August 2009
Net earnings down 41% yoy but NRA initiates coverage with a 'Buy' call.
THREE ANALYSTS issued ‘Outperform’ and ‘Buy’ calls on Hi-P despite weaker year-on-year 2Q09 results by the electronics contract manufacturer.
One reason for the interest may be the fact that its 2Q09 net earnings, at S$16 million, were above consensus estimates.
The analysts from Credit Suisse, DBS Vickers and NRA Capital were also upbeat about its recently announced expansion into flexible printed circuit boards.
NRA Capital's Jacky Lee initated coverage with a 'Buy' call, noting that even though Hi-P's market cap is small relative to peers such as Venture or Flextronics, its ROE of 22% is the highest.
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