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

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

2 things that stop me from buying.
1) no div
2) young listed company. only IPO 2010.
 
 
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[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

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.