there is conviction behind the repeated buying. I think they understand everything that is going on in the Company, including the future of the convertible bonds 1 & 2. Jiayou!
Despite the Thais not buying in recent sessions, the stock price has firmed up nicely. 36 cents today for a PE of 2.7. No one can say that this is expensive for a high-growth F&B company. The catalysts for a re-rating are many, including any news of an impending IPO of Garden Fresh.
Sino Grandness up 2 cts, closed at 37.5 cents last Friday on high volume. It has now gone above its 200-day average. The 200 day moving average is a number closely watched by many traders --- time to cheong? Stocks moving above that figure signal more major upside to come.
China Minzhong has been trying to build up its loquat beverage business. In its 1Q results announcement last night, Minzhong said " the gross margin for beverage business have remained relatively stable at 47.5%." Excellent margin, which is slightly higher than Sino Grandness' (45% in 1H2015).
However, Minzhong's beverage sales have fallen 48% in 1QFY2016. Why? Aside fr reasons cited by Minzhong, perhaps another reason is it cannot compete with the steamrolling machine that Sino Grandness has become!
The gross profit margin of Sino Grandness' beverages is known to be 45%. Canned fruits is about 41%. How about their relatively new snacks division?
I came across upcoming RTO company China Star Food, which is into sacks based on sweet potatoes. Its GP margin for the past 3 years was 35-40%. Pretty high.
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