china paper holdings

greenrookie
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13 years 10 months ago #4033 by greenrookie

china paper holdings was created by greenrookie

The stock 1st quater profits improved by 13%, has high cash flow, has earmark/completd few expansion plans such as new plants and acquisitions. Never made a loss since listed in sgx, although its revenue and profits is going on a roller coaster ride. Its 2008 revenus and profits is highest, partly due to increase demand as a results of 2008 olympic games, with the same reasoning, shouldn\'t it also do better this year with the shanghai expo?? Also the stock is trading at a low PE of less than 3, and has NAV of 0.4122. Cashflow is postive. It has also finally declare dividends after many years of non-dividend policy, although the dividend is one-off and not a policy, it perhaps reflected the confidence of the management to embark on expansion plans and give out dividents at the same time. With so many positives going on, the stock just keep falling and falling, in fact it is close to its 52 weeks low? seem to me downside is limited when potential for upside. Any comments anyone?

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entdev
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13 years 10 months ago #4034 by entdev

Replied by entdev on topic Re:china paper holdings

There is an impending rights issue as well. Take note of this too for any comments.

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greenrookie
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13 years 10 months ago #4041 by greenrookie

Replied by greenrookie on topic Re:china paper holdings

Thank you entdev for your insight, Indeed, the rights issue price of 12.5cents is lower than the current price, we can perhaps wait a little longer. It worth mentioning that the proceed with go to towards funding a new plant for its expansion. However, the company just raise funds last year through a placement of shares, it seems to me the main reason why the shares prices keep failing could be due to this. Why does the company not fund its expansion with it hugh cash holding or take out a loan? I guess the take up rate of the rights will serve as guage how receptive the investors are to the round of fund raising.

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greenrookie
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13 years 7 months ago #4425 by greenrookie

Replied by greenrookie on topic Re:china paper holdings

stock touched 14.5 cents on high volume, have been moving up after range bound around 12.5 cents (rights issue price) for long enough already.
Volume for the past few days has been more than 3 millions and have 2 days breaching the 10 million mark.
It has been a "lost" s chip, is it been finally found?
some details:
low PE of below 3,
use of rights to fund expansion plans, has been producing at near max capacity before this
new product of coated papers commenced since may (% of revenue is not large thou)
even after accounting the increased in shares capital after the rights issue, the net asset per shares should be 0.27 cents, almost 100 % discount
(Figure derived from its half year report, after taking into consideration 60 % increase in shares holding, I stand corrected if need be)
zero gearing, company prefer to raise funds from sharesholders
sitting on cash of 60 million before rights issue

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yoketiong
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13 years 7 months ago #4434 by yoketiong

Replied by yoketiong on topic Re:china paper holdings

First of all I would like to correct that Chinapaper's Right Issue is priced at $0.12 not $0.125 as mentioned in this forum.
Secondly, the fund raised in this exercise is meant for expanding its un-coated paper products from 180,000 tonns p.a. to another 50,000 tonns p.a. by next year.
Early Jan 2010, the company has just raised funds from 3 PRC Investors (who, accordingly to the company, are businessmen who are familiar with the company). The issue price then was $0.205 per share. The 3-for-5 Right issues would allow these 3 investors to average down their costs to $0.173125 per share.
Hence if you have already subscribed to the rights or intended to trade this stock kindly take note that $0.175 will be a significant resistance.

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greenrookie
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13 years 7 months ago #4436 by greenrookie

Replied by greenrookie on topic Re:Re:china paper holdings

Rights over subscribed=investor confidence? New shares to be listed by 4 oct

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