China Minzhong

  • Rhoda
  • Visitor
  • Visitor
15 Nov 2012 02:56 #12032 by Rhoda
Replied by Rhoda on topic Re:China Minzhong
China Minzhong’s 1Q ended Sept ’12 net profit rose 31% yoy to Rmb122mln, coming in slightly above expectations due to better than expected sale volumes.

 But net profit margin fell 6% points to 19.8% due to higher production costs and increased sales of lower margined paddy crops.

 More importantly the company collected back Rmb687mln out of the Rmb967mln and generated Rmb259mln cash flows for the quarter, bringing their cash holdings up from Rmb67mln to Rmb302mln.  The widely watched trade receivable days dropped sharply
from 145 to 66 resulting in their cash conversion cycle improving from 184 to 54 days.

 Looking ahead, management expects continued growth due to new farmland contributions, increased contributions from higher margined crops such as King Oyster Mushrooms and Black Fungus as well as doubling of their processing production capacity.

 With reduced concerns over the quality of the company’s trade receivables and with the company on track for continued growth, the share price recovery from its low of 53 cents hit in June ’12 looks likely to continue.

 At 3x PE, we maintain our BUY recommendation.

Source: Lim & Tan Securities

Please Log in or Create an account to join the conversation.

  • Kiasu
  • Visitor
  • Visitor
17 Nov 2012 02:24 #12053 by Kiasu
Replied by Kiasu on topic Re:China Minzhong
These are the hard facts. Which would you invest for growth?
Industry Peer Comparison Ã˜
  ROA(%) ROE(%)   P/E         P/BV     EPS          DPS       Div Yield China Minzhong Food Corp Ltd    10.07       13.10 3.20      0.59     0.2494    - - Wilmar International Limited 4.29 11.78      10.24 1.19 0.2419 0.059    1.56 Golden Agri-Resources Ltd   2.76 4.04 4.88 0.76 0.1096 0.018 4.10 Olam International Ltd 1.17 5.24 11.77 1.24 0.1451 0.040 2.27 Hsu Fu Chi International Limited 11.14 19.39 24.91 5.46 0.1831 - - ChinaMinZhong 5-year Income Statement ... in CNY ‘mln FY2008FY2009FY2010FY2011FY2012 Income Statement Total Revenue 633.79 1,057.84 1,422.56 1,929.21 2,568.84 Cost of Revenue (401.51) (634.22) (848.24) (1,128.64) (1,582.95) Gross Profit 232.28 423.61 574.32 800.57 985.89 Operating Expenses (6.53) (79.96) (141.65) (146.77) (259.72) Operating Income 225.75 343.66 432.67 653.80 726.17 Others, Net - - - - - Income before Taxes 225.75 343.66 432.67 653.80 726.17 Tax (8.35) (55.56) (65.15) (87.06) (46.59) Net Income 217.40 288.10 367.52 566.74
679.58

 

Please Log in or Create an account to join the conversation.

  • Peng Hock
  • Visitor
  • Visitor
17 Nov 2012 02:54 #12054 by Peng Hock
Replied by Peng Hock on topic Re:Re:China Minzhong
2 things that stop me from buying.
1) no div
2) young listed company. only IPO 2010.
 
 


[Kiasu 16-11-2012]:

These are the hard facts. Which would you invest for growth?
Industry Peer Comparison Ã˜
  ROA(%) ROE(%)   P/E         P/BV     EPS          DPS       Div Yield China Minzhong Food Corp Ltd    10.07       13.10 3.20      0.59     0.2494    - - Wilmar International Limited 4.29 11.78      10.24 1.19 0.2419 0.059    1.56 Golden Agri-Resources Ltd   2.76 4.04 4.88 0.76 0.1096 0.018 4.10 Olam International Ltd 1.17 5.24 11.77 1.24 0.1451 0.040 2.27 Hsu Fu Chi International Limited 11.14 19.39 24.91 5.46 0.1831 - - ChinaMinZhong 5-year Income Statement ... in CNY ‘mln FY2008FY2009FY2010FY2011FY2012 Income Statement Total Revenue 633.79 1,057.84 1,422.56 1,929.21 2,568.84 Cost of Revenue (401.51) (634.22) (848.24) (1,128.64) (1,582.95) Gross Profit 232.28 423.61 574.32 800.57 985.89 Operating Expenses (6.53) (79.96) (141.65) (146.77) (259.72) Operating Income 225.75 343.66 432.67 653.80 726.17 Others, Net - - - - - Income before Taxes 225.75 343.66 432.67 653.80 726.17 Tax (8.35) (55.56) (65.15) (87.06) (46.59) Net Income 217.40 288.10 367.52 566.74
679.58

 

Please Log in or Create an account to join the conversation.

  • Guest
  • Visitor
  • Visitor
17 Nov 2012 04:26 #12057 by Guest
Replied by Guest on topic Re:China Minzhong
That's too "shallow" n defensive to look at stocks. You're definitely in de wrong place. Go for bonds or debt instruments or REITS. Apple, the world's best and most profitable company do not give out divd. These r growth stocks. CMZ has a long way to build its potential. Many big funds, incl GIC, are in it. If u'r looking for "old" companies, u shld buy FnN, which is >130 yrs old. Did u, @ 6.50? I'm looking for company that has sustainable business (as a basic) and good potential (can generate). It must hv good givernance and made money for shareholders. The rest wiill fall in place.   

Please Log in or Create an account to join the conversation.

Share Prices

Counter NameLastChange
AEM Holdings3.8700.030
Avi-Tech Electronics0.2800.005
Best World1.7900.030
Broadway Ind0.118-
China Sunsine0.405-
DISA0.003-
Food Empire0.635-0.015
Fortress Minerals0.330-
Geo Energy Res0.360-0.015
Golden Energy0.7850.005
GSS Energy0.0480.002
InnoTek0.455-0.015
ISDN Holdings0.4150.010
ISOTeam0.090-0.010
IX Biopharma0.1270.001
Jiutian Chemical0.0820.004
KSH Holdings0.350-
Leader Env0.056-
Medtecs Intl0.139-0.001
Meta Health0.025-
Nordic Group0.475-0.005
Oxley Holdings0.1500.001
REX International0.2400.005
Riverstone0.6400.005
Sinostar PEC0.1850.015
Southern Alliance Mining0.380-
Straco Corp.0.400-0.005
Sunpower Group0.2850.025
The Trendlines0.0930.005
Totm Technologies0.103-0.002
UG Healthcare0.194-0.001
Uni-Asia Group0.8350.005
Wilmar Intl4.120-
Yangzijiang Shipbldg1.410-0.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 394 guests and no members online