Now + 2 cents = 17 cents. Strong rise but it's pretty low level. Cos consider that last Feb it was 35 cents!

Almost forgotten about this stock. Like everything else, this one hit rock bottom a few months ago. In this case, it was at 10 cents. The rally of 2012 has lifted Ziwo too. Now trading at 15 cents.

However, tread carefully. The auditor resigned in July, there is no news of a replacement auditor. Did I miss something here?

3Q results were not good, and I expect 4Q would be more of the same cos of high raw material costs, labor costs, new competition, etc .

Ziwo has had a bad 3 months from July to Sept, falling something like 50%. There is a good chance that it is ready to move up ---- now 13.3 cents, up 1.1 cents already.

Ziwo is 24 cents now on 8.7 m shares. Bounced off 52-week low of 21 cents. 

High volume this morning. Why?
Now 22.5 cents, still a long way from target price.

Ziwo looks clean!

The board of directors of the Company (the “Board”) would like to announce that our internal auditor, BDO Consultants Pte Ltd (“BDO”), had completed their scheduled audit and an internal audit report has been issued on 24 May 2011 (the “Report”). This is the third year that the Company had engaged BDO to perform this internal control audit.

The Report contained findings and recommendations in the areas of interested persons transactions, inventory management and costing, payroll management, capital expenditure on plant, machinery and equipments, follow up of previous audit issues and cash and bank balances validation. None of these findings constitute material, price sensitive internal

controls weaknesses.

 

The Report was reviewed and discussed by our Audit Committee with BDO and the Audit Committee has obtained confirmation from management of their agreement to take appropriate action to address the recommendations by BDO.

By Order of the Board
Ting Chun Yuen
Executive Chairman and Chief Executive Officer

13 June 2011

Ziwo is a pretty good business but it has its challenges , especially in the short term as 1Q is seasonally a slow period due to CNY.

This time Ziwo also has to deal with high raw material costs of rubber & PET chips.

Phillip Securities yesterday maintained buy with target price of $0.45

Long time Ziwo has shown no action - just trading hentak kaki.

Analysts went up a few days ago, with UOB KH issuing report after that and a buy call.
Still hentak kaki at 33 cents.

Market sentiment was good yesterday cos signals of strength from US market. Now, take profit?

Dont forget  tomorrow Friday is a public holiday. 

Phillips Securities is so conservative, pegging its target price at just 5X for a stock that it is expecting net profit growth of 20% this year.


++++ We are still optimistic in the growth of the company, as we feel that the positioning of the

company’s products as import substitution products will stand it in good stead to compete

against its competitors. Like we said, raw material cost increases may eat into profit margin,

however the counter argument is that it affects all industry players. The company may even be

able to benefit from this as its products are generally cheaper than its overseas competitors and

also, it being one of the larger producers in China has an efficiency edge over the smaller

producers. We have adjusted our FY2011E earnings estimates. We raised our revenue forecast

by 3.7%, however we have lowered our net profit forecast by 1.3% as we assume higher raw

material cost. We are also lowering our valuation peg to 5x earnings to better reflect the change

in current market sentiment. Our target price remains at $0.47 and we maintain our buy

recommendation.

Stock rebounded on Friday! Solid results.

Phillip Securities = target pr4ice 47 cents.

We have adjusted our FY2011E earnings estimates. We raised our revenue forecast
by 3.7%, however we have lowered our net profit forecast by 1.3% as we assume higher raw
material cost. We are also lowering our valuation peg to 5x earnings to better reflect the change
in current market sentiment. Our target price remains at $0.47 and we maintain our buy
recommendation.

Pretty solid results:

For the three months ended 31 December 2010 (“4Q10”), the Group reported revenue and
earnings of RMB146.1 million and RMB31.1 million, representing year-on-year (“YoY”)
increases of 48.5% and 58.7% respectively


Earnings grew 22.5% to RMB116.7 million in FY2010


Second phase expansion plan expected to start contribution in 4Q11


Proposed first and final dividend payout of RMB0.01 per ordinary share

Hi observer2,

You hit right on the nail. I am holding ziwo and the recent sell-off at Qingmei prompt me to seriously consider shifting out of Ziwo into Qingmei. The result released by Qingmei is very much positive with new capacity already in production and in the mist of ramping up. Current PE without taking into consideration of the new sales is only 4x with dividend yield of 7%.

On the other hand, i am also concern about the new issues to be issue by Ziwo to dilute the EPS. You have double confirm that my brain is thinking properly.... When something look too cheap or too good to be true (Qingmei) it is always good to have a second opinion by the expert. :)

Hi Erelation – The key risks to ZIWO include rising raw material costs & competition. The share price went above 40 cts and fell sharply back to 34 cts probably due to concern over the current high rubber and oil prices which could adversely affect Ziwo’s profit margin. Furthermore, there are other stocks with more attractive valuation for investors to choose – at 34 cts, I would rather buy Qingmei at under 34 cts with lower PER and a certainty of a dividend of over 2 cts expected to be announced in Aug 2011.

http://register.itradecimb.com.sg/EventInfo.aspx?ZiwoHldgs040110

Ziwo will do roadshow at CIMB on Tuesday, Jan 4.

After searching high & low for it, finally found the website of Ziwo. It goes by some subsidiary's name......no wonder cannot find it easily.

http://www.chinazhihe.com/

Ziwo produces a few types of foamed products. One  of them is foamed PE which can dampen vibration (it’s foam after all!)  and insulate against heat. Its foamed product is used for auto mobile roof lining and …..ZIWO is certified to supply to manufacturers of GM China, China Wulin and Chevrolet.

 From what I read in an analyst report, ZIWO is in negotiation with a few other car brands as the certified supplier.

Like that the stock will have a lot of potential because of the fast growing China automobile market.

http://www.sgx.com/wps/portal/marketplace/mp-en/listed_companies_info

Ziwo cheonging this morning after announcing final clearance for TDR listing. now bookbuilding and pricing....>>> stock may touch 40 cents in a matter of days.

RECEIPT OF IN-PRINCIPLE APPROVAL FROM TAIWAN STOCK EXCHANGE FOR THE
OFFERING AND LISTING OF TAIWAN DEPOSITORY RECEIPTS...

Stock closed at 36.5 cents, up 1.5 cents, today

fyi,  report by Polaris Financial Group of Taiwan.

Attachments
 ZIWO_Polaris.pdf [147 KB]