sanjiangPhoto: China Sanjiang Fine ChemicalBocom: CHINA SANJIANG CHEMICAL 'Top Pick'

Bocom International has a “Buy” recommendation on China Sanjiang Fine Chemical (HK: 2198) and includes it among its “Top Pick” stocks, with the diversified chemical manufacturer being just one of two stocks within the research house's "Top 10 Basket" to have issued a positive earnings alert.

Bocom’s target price on China Sanjiang is 5.38 hkd (recent share price 3.85).

“Sanjiang pre-announced on July 15 that its 1H13 results would rise by over 50% year-on-year resulting from growth in sales volume and production capacity,” Bocom said.

Sanjiang’s top line rose a healthy 21.3% in 2012 to 2.52 billion yuan, producing a net profit increase of 15.2% to 467 million.

bocom_top10_5Last closing price is as of July 16, 2013.     Source: Bocom

Bocom’s current “Top 10 Basket,” compiled in December of last year, has outperformed Hong Kong’s benchmark Hang Seng Composite Index of late.

In the seven months between December 18, 2012 and July 16, 2013, the “Top 10 Basket” rose an average of 21.1% while the benchmark Index fell 5.3% over the same period.

China Sanjiang was one of the top gainers over the seven-month stretch, with an over 35% rise in its Hong Kong-listed share value.

“This Top 10 Basket outperformance stepped up further from 2,127 basis points as per our last update on June 26, 2013, notwithstanding the broad market rally (HSI up over 7% since June 26), led partly by the top three gainers, namely China Everbright International (CEI) (HK: 257) (up 29.2%), SMIC (HK: 981) (up 20%), and Sanjiang (up 17.9%),” Bocom added.

sanjiang7_19Sanjiang recently 3.85 hkdChina Sanjiang is a manufacturer and supplier of consumer chemicals and their ingredients (i.e. EO and AEO surfactants). It also produces and supplies other surfactants. The company is also engaged in the provision of EO and surfactant processing services to its customers, as well as the production and supply of other chemical products (such as glycol) and industrial gases, namely oxygen, nitrogen and argon. In terms of production volume in recent years, the company is the third largest EO manufacturer and the largest privately-owned EO manufacturer in China, and is also the second largest AEO surfactant manufacturer and the largest private AEO surfactant manufacturer in China.

meikeSportswear play Meike Intl issued an interim profit warning.    Photo: Meike

MEIKE: Expects interim loss to widen

Meike International (HK: 953) has issued a profit warning saying it expects to record a greater unaudited consolidated loss for the six months ended 30 June 2013 as compared to the loss for the same period last year.

In the first half of 2012, Meike reported a net loss of 7.3 million yuan.

meike7_19Meike recently 0.38 hkd“Domestic demand is still stagnant, competition within the sportswear industry in China is still intensive which results in higher product discount offerings in the market and the excessive inventory at the distribution channel level in the industry remains a challenge to distributors,” Meike said.

The sportswear play reduced its volume sales orders with distributors for the first and second quarters in 2013 as part of its reintegration program to help remedy supply excess inventory issues.

See also:

CHINA SANJIANG, PAX GLOBAL: Latest Happenings... 

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings3.280-
Avi-Tech Electronics0.250-
Best World1.7100.030
Broadway Ind0.091-0.001
China Sunsine0.395-
Delfi Limited1.130-
Food Empire1.090-
Fortress Minerals0.310-
Geo Energy Res0.280-
GSS Energy0.027-0.001
Hong Leong Finance2.4900.010
Hongkong Land (USD)3.2000.010
ISDN Holdings0.3350.005
IX Biopharma0.0440.001
Jiutian Chemical0.026-
KSH Holdings0.3000.010
Leader Env0.052-0.001
Medtecs Intl0.1410.001
Nordic Group0.400-
Oxley Holdings0.100-
REX International0.164-0.002
Sinostar PEC0.135-
Southern Alliance Mining0.660-0.010
Straco Corp.0.470-
Sunpower Group0.2500.010
The Trendlines0.091-
Totm Technologies0.038-
Uni-Asia Group0.900-0.005
Wilmar Intl3.580-0.040
Yangzijiang Shipbldg1.5100.020

We have 261 guests and no members online

rss_2 NextInsight - Latest News