XINREN TO CHIONG LIKE SUNVIC TODAY.......TAKE NOTE OF IT

XINREN TO CHIONG LIKE SUNVIC TODAY.......TAKE NOTE OF IT

$0.305/$0.31....!!

PhilipNg, what is the basis for your high hopes?

As far as I know, the stock will be catalysed only if Al price recovers but this is not happening. Al price has been weak throughout 2013.



www.infomine.com/investment/metal-prices/aluminum/1-year/

On further research, I learnt that XinRen has flown higher to 54 cents (!!!!) because of recognised profits from its 21% investment in a Xinjiang plant. This one is making very good profits because electricity costs are only a third of that in China.

This is crucial since the commodity Al price is pretty uniform everywhere.

XinRen is going to up its stake to 51%. This values the Xinjiang plant at 2.4X PE. What a dirt cheap purchase. Why ? I guess the Xinjiang operators need cash. Same story.

Take note: 6 June, EGM of Xinren for shareholder approval to acquire 30% stake in Xinjiang plant.
If this goes thru, and there's no reason why it wouldn't, the company is looking at stronger profits this year.

infopub.sgx.com/FileOpen/XinRen_1Q2014_P...cement&FileID=296718

21% stake now = rMB23 m in 1Q2014.
51% stake = rmb56m quarterly x 4 = rmb 223 m in annual profit.

In the financial year ended 31 December 2013, Xinjiang Plant reported a total production output of approximately 400,000 tonnes of aluminum ingots with an unaudited net profit of approximately RMB443 million.

-- Note: UNAUDITED