Re:market correction... by MacGyver30th, Jul. 04:11 PM Market is bullish again.. Good trading period from now to early-m...
Re:Map Technology - ... by happin30th, Jul. 03:16 PM MAP is now at 6 cents. Noticed that yesterday's last trade was 1...
Re:Rokko-An Explosiv... by neontet30th, Jul. 07:41 AM all these semicon companies are doing really well.
congrats on s...
market correction by pathfinder30th, Jul. 12:10 AM With all US company result good news ending in 2 weeks time & no ...
Re:Rokko-An Explosiv... by MOSBY29th, Jul. 11:49 PM http://www.remisiers.org/research//dailyex2307.pdf
TP :$0.30...
ANWELL's fair value is 86 cents, says NRA Capital
Written by Jacky Lee (NRA Capital)
Friday, 05 March 2010
The following are excerpts of NRA Capital's report dated Mar 3...
Core earnings above expectations. 4Q09 core was better than our net loss forecast of HK$74.4 m due to unexpected HK$HK$138m tax credit because of inter-company transfer of solar equipment - this more than offset the lower-than-expected gross margins.
Anwell's solar manufacturing line in Henan. NextInsight file photo.
Sales increased 29% yoy to HK$209.7mdue mainly to the sales from its European subsidiary in the solar trading division, set up in August last year.
Solar sales have grown from zero to HK$54m in 4Q09 while equipment revenue showed a dip of 60% yoy to HK$10m and disc sales increased slightly by 6% yoy.
Gross margins declined 4.6% pts yoy to 5.4%,affected by the drop in ASP for optical disc business and poorer sales mix for trading business. The surge in operating costs for the solar manufacturing business led the EBITDA margins into negative territory.
However, including HK$220m government grants received, higher depreciation, financial costs and forex loss, reversed its pretax loss from HK$75m to pretax profit of HK$116m.
Net gearing improved qoq from 30% to 20% at end Dec quarter. Despite a HK$154m capital expenditure, Anwell generated HK$84m positive free cash flow after reducing its cash conversion cycle by 51 days qoq to 5 days due to longer payable days.
Source: NRA Capital. *Excluded govt grants.
Achieved conversion efficiency of 8.58% certifiedby National Laboratory of China for its solar cell. We understand from management, its 40MW solar panel production line should be able to start anytime soon.
Management still targets to ramp its capacity up to 120MW by the end of this year. We believe the increasing demand for Blu-ray discs could benefit its equipment business. To date, Anwell has successfully delivered two pre-recorder Blu-ray machines.
Keeping forecasts and maintain Buy. We kept our FY10-11 estimated relatively unchanged and introduce FY12 forecasts. However, our fair value is reduced from S$0.95 to S$0.86 as we roll forward our valuation pegged from FY09 to FY10 but instead of using 1.23x PBR, we are now using 1XPBR, the drop in the valuation is partially due to the depreciation in HKD as compared to last year. Nevertheless, we maintain our Buy recommendation.
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