ZIWO

register.itradecimb.com.sg/EventInfo.aspx?ZiwoHldgs040110

Ziwo will do roadshow at CIMB on Tuesday, Jan 4.

In a matter of days or weeks, the stock price - now 40 cents - will look v different cos of TDR & full yr results - both should be highly positive catalysts. Return shod be worth a punt, in my humble opinion.

Hi Erelation – The key risks to ZIWO include rising raw material costs & competition. The share price went above 40 cts and fell sharply back to 34 cts probably due to concern over the current high rubber and oil prices which could adversely affect Ziwo’s profit margin. Furthermore, there are other stocks with more attractive valuation for investors to choose – at 34 cts, I would rather buy Qingmei at under 34 cts with lower PER and a certainty of a dividend of over 2 cts expected to be announced in Aug 2011.

Hi observer2,
You hit right on the nail. I am holding ziwo and the recent sell-off at Qingmei prompt me to seriously consider shifting out of Ziwo into Qingmei. The result released by Qingmei is very much positive with new capacity already in production and in the mist of ramping up. Current PE without taking into consideration of the new sales is only 4x with dividend yield of 7%.
On the other hand, i am also concern about the new issues to be issue by Ziwo to dilute the EPS. You have double confirm that my brain is thinking properly.... When something look too cheap or too good to be true (Qingmei) it is always good to have a second opinion by the expert.

Pretty solid results:

For the three months ended 31 December 2010 (“4Q10”), the Group reported revenue and
earnings of RMB146.1 million and RMB31.1 million, representing year-on-year (“YoY”)
increases of 48.5% and 58.7% respectively


Earnings grew 22.5% to RMB116.7 million in FY2010

Stock rebounded on Friday! Solid results.

Phillip Securities = target pr4ice 47 cents.

We have adjusted our FY2011E earnings estimates. We raised our revenue forecast
by 3.7%, however we have lowered our net profit forecast by 1.3% as we assume higher raw
material cost. We are also lowering our valuation peg to 5x earnings to better reflect the change
in current market sentiment. Our target price remains at $0.47 and we maintain our buy
recommendation.