Sapphire Corp Target price 60 cents, last traded 12.9 cents

Has anyone researched Sapphire Corp, other than SIAS (target price 60 cents but last traded at 12.9 cents) Info from their website:
Sapphire Corporation Limited ("Sapphire") is principally engaged in the production of steel and vanadium products, trading of minerals and investments in mining and resource-related businesses.

Our manufacturing operations are undertaken by our Sichuan-based core subsidiary, Neijiang Chuanwei Special Steel Co. Ltd ("Special Steel"), which produces hot rolled coils ("HRC"), rebars and vanadium pentoxide ("V2O5") flakes for the China market.

Our wholly owned mineral trading arm, Sapphire Mineral Resources Pte Ltd, procures strategic minerals for our Group's steel-making business in China as well as other customers.

Our Group's investments include directly-held China Vanadium Titano-Magnetite Mining Company Limited (9.2%), an iron ore producer listed on the Hong Kong Stock Exchange, and indirectly-held WeiYuan Steel Co. Ltd (11.73%), a steel manufacturer and Neijang BoWei Xinyu Chemical Co. Ltd (9.47%), a coke producer. The three entities are part of an integrated steel group that also includes Special Steel. All businesses are located in Sichuan Province, China.

Sapphire has been listed on the Singapore Exchange since 1999 (stock code: SI:589). Based in Singapore, our Group has subsidiaries and associate companies in China, Malaysia and Hong

No analyst worth his salt will set a target price of more than 100% from the existing market price.
And the report does not highlight the KEY problem in Sapphire shareholding structure.
Sapphire is the minority shareholder in the China venture, meaning it has no say whether there is dividends and no say when it can sell the shares in the China venture.
Only when the major shareholder decides to give dividends, can Sapphire benefit.
Look carefully.
 

Hi, I think you are mistaken. Sapphire holds a 9.2% stake in China Vanadium. It has used its entire stake to get a $40 million loan. This is to avoid diluting shareholders' shares. China Vanadium doesn't feature too much in sapphire's future expansion plans. On the other hand, Special Steel is the main money making subsidiary and it has recently bought out the entire stake in Special Steel (meaning sapphire owns 100% of Special Steel). Sapphire has also started producing the more profitable steel products.... So it expects to increase its revenue and profit margin in the coming quarters. Do check out the structure of this company before institutions come in and push up the price.

This is the analyst report, with target price of 60cents www.sapphirecorp.com.sg/misc/SAPP_221111.pdf

Awards received by Sapphire: Singapore, 16 August 2011 – SGX Mainboard-listed Sapphire Corporation Limited(“Sapphire” or “the Group”), which is primarily involved in the production of vanadium and steel-related products as well as mineral trading, is pleased to announce today that Sapphire has been conferred two coveted awards for outstanding business growth by the DP Information Group. Mr Teo Cheng Kwee, Sapphire’s Chief Executive Officer, will be receiving the two awards at an award presentation ceremony tomorrow. The Fastest Growing 50 Award identifies the most dynamic and exciting companies from the Singapore 1000 and SME 1000 annual ranking that have consistently achieved outstanding corporate growth, with the top 50 companies honoured with this certification. The award ceremony will also recognise the Top 10 Fastest Growing Internationalising Companies of 2011. Sapphire is proud to have achieved recognition in two Award categories: One of the Top 10 for the “Fastest Growing 50 Awards, 2011” and First for “Top 10 Fastest Growing Internationalising Companies, 2011” The “Fastest Growing 50” (FG50) Awards rank Singapore’s top 50 companies that have attained the highest 3-year compounded annual growth rate (CAGR) and includes all currently ranked Singapore 1000 and SME 1000 companies. It also recognizes the Top 10 Fastest Growing Internationalising Companies,which have attained the highest two-year CAGR from revenue outside of the Singapore market. For the first award, Sapphire successfully fulfilled the criteria of having 4 years of operations, achieving minimum 10% turnover growth or better for the last three years, and being profitable for the past three years (2007-2010) For the “Top 10 Fastest Growing Internationalising Companies 2011” Award, Sapphire fulfilled the criterion of the positive CAGR on overseas revenue over the past three years. The financial period under consideration was from 1 June 2007 to 31 May 2010. The Awards are co-organised by DP Information Group and Ernst & Young Solutions LLP, and supported by Accounting and Corporate Regulatory Authority(ACRA), Infocomm Development Authority of Singapore (IDA), International Enterprise Singapore (IE Singapore), SPRING Singapore, (Singapore Business Federation (SBF) and The Business Times. Mr Teo commented on the awards: “We are delighted that Sapphire Corp has been well recognized for our strong business growth over the last few years. We owe our success to the combined efforts and contribution of both the management and staff in dealing with the challenges of doing business in an overseas market. While it is gratifying to receive these awards, we will not rest on our laurels, but will strive our best to continue to deliver a good performance to maximise shareholder value.”

But there was an announcement that i don't fully understand. can anyone care to explain? Does it mean that SMRPL has paid $15 to $19M to Sapphire? The Board of Directors of Sapphire Corporation Limited (the “Company”) wishes to announce that Sapphire Mineral Resources Pte Ltd (“SMRPL”), a wholly-owned subsidiary of the Company, has increased its issued and paid up capital from S$15,818,670 to S$19,368,456 by an allotment of 3,549,786 ordinary shares at S$1 per share to the Company in consideration of the capitalization of the amount owing by SMRPL to the Company. The transaction is not expected to have any material impact on the net earnings per share or net tangible assets per share of the Company for the financial year ended 31 December 2011. None of the directors or substantial shareholders of the Company has any interest, direct or indirect, in the aforesaid transactions save their shareholdings in the Company. BY ORDER OF THE BOARD Teo Cheng Kwee Chief Executive Officer Date: 13 January 2012