China Gaoxian Fibre

sp71171
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14 years 2 months ago #3345 by sp71171

Replied by sp71171 on topic Re:China Gaoxian Fibre

i supposed the main diff is they are still profitable and even manage to grow in volume while the others are either making loss or volume are badly hit. apparently the story they are selling is import-substitution, which they have the cost advantage. this story to date sounds intact. problems with gaoxian is : (1) s chip (2) texile industry (3) no track record (4) no analyst coverage Let\'s use a layman calculation. let\'s say if they made same level profit for FY10 and all subsequent years, they can easy give 3-4 cents as dividend, at this px, after 5-6 years you can get back the cash you invest. you think is a good deal?

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erelation
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14 years 1 month ago - 14 years 1 month ago #3382 by erelation

Replied by erelation on topic Re:China Gaoxian Fibre

With this announcement, i am happy even though they didn\'t give out any final dividend.... i am going to sit tight and wait for this counter to reach my target price. Gaoxian Fibre Fabric Holdings Limited (Ã¢â¬Åthe CompanyÃ¢â¬Â) refers to the initial public offering of the CompanyÃ¢â¬â¢s Shares (the Ã¢â¬ÅIPOÃ¢â¬Â) on 18 September 2009 and the CompanyÃ¢â¬â¢s prospectus dated 9 September 2009 (the Ã¢â¬ÅProspectusÃ¢â¬Â). The Company wishes to announce that its subsidiary Fujian New Huawei Fibre Dyeing Co., Ltd has entered into a contract for the purchase of 50 new warp knit machines for the production of warp knit fabric and will be utilizing about RMB87.2 million (approximately *SGD17.9 million) from the net proceeds of about S$78.3 million raised from the IPO Proceeds. The new warp knit machines are expected to be fully installed by the end of second quarter of FY2010 and is expected to contribute positively to the GroupÃ¢â¬â¢s top-line growth starting from 3Q2010. The utilization is in accordance with the intended use of proceeds of the initial public offering and in accordance with the percentage allocated, as stated in the Prospectus. Planned maximum WKF production capacity to rise 88% to 32,000 metric tonnes by end 2Q10 from current 17,000 metric tonnes. Strong order book of RMB300 million as at end February 2010

Last edit: 14 years 1 month ago by erelation.

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Dongdaemun
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14 years 4 days ago - 14 years 4 days ago #3779 by Dongdaemun

Replied by Dongdaemun on topic Re:China Gaoxian Fibre

China Gaoxian had a 12% rise in net profit for Q1 - decent but nothing like Li Heng\'s. But Li Heng is coming out of a low base, while Gaoxian was pretty strong in Q1 last year. So far this morning, Gaoxian is No.2 in volume on the stock exchange. About 9.2 m shares traded by 9.45 am. Quite a rare activity, which means people are taking note of this solid stock. Very cheap at 18 cents.... Given its expanding capacity, its Q2 and onward will be sterling.

Last edit: 14 years 4 days ago by Dongdaemun.

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Mel
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14 years 1 day ago - 14 years 1 day ago #3794 by Mel

Replied by Mel on topic Re:China Gaoxian Fibre

China Sky Chemical Fibre on friday joined its China peers in reporting strong turnaround. Revenue in Q1 up 149%. Net profit was RMb15 m, versus a RMB58 m loss in 1Q09. Whole industry is coming up fast.

Last edit: 14 years 1 day ago by Mel.

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Joes
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13 years 11 months ago #3853 by Joes

Replied by Joes on topic Re:China Gaoxian Fibre

This unloved babe is 16 cents with a historial PE of 2.3X. As its production capacity gets expanded massively this year, and barring any downturn in business, the earnings will rise sharply. The PE for this year could be something like 1.5X. It\'s unheard of. This is no micro-cap. This company\'s earnings last year was S$80 million - on the same level as Hyflux. And Hyflux trades at 30X PE!

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rabbitfoot
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13 years 11 months ago #3883 by rabbitfoot

Replied by rabbitfoot on topic Re:China Gaoxian Fibre

At this low price, I wonder who could be selling, with only 5 million ipo shares offered tp the public. Looking at the chart, I see a big spike from 0.19 to 0.26 in just 1 week span last year. Looks like this stock can really fly if it wants to. Wonder why only covered by UOB, even after reporting solid Q1 results ?

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