14-02-2011, 07:49 PM
CHINA MINZHONG’S 1H FY2011 NET PROFIT ROSE 43.3% TO RMB208.7 MILLION
http://info.sgx.com/webcoranncatth.nsf/V...70010B518/$file/Minzhong_1HFY2011_PressRelease_14Feb11.pdf?openelement [Press Release]
http://info.sgx.com/webcoranncatth.nsf/V...7000FE0F4/$file/Minzhong_2Q2011_Results_14Feb11.pdf?openelement [SGX Announcement]
http://info.sgx.com/webcoranncatth.nsf/V...7001203CB/$file/ChinaMinzhong_1HFY2011_ResultsPresentation_14Feb11.pdf?openelement [PPT Slides]
http://info.sgx.com/webcoranncatth.nsf/V...7000F7B14/$file/Annt-UseofIPOProceeds-14Feb2011.pdf?openelement [Acquisitions]
China Minzhong continues to grow at amazing speed backed by increasingly high demand for vegetables and growing cultivation space and processing plants. It experienced growth in revenue, profitability and margins. Operating cash-flow dipped slightly but I expect it to be boosted in 2H 11 when cash proceeds from 2Q and 3Q sales are recognized. Being an agriculture company, its profits and cash-flow are seasonally so do not extrapolate forward. Minzhong continues to generate good cash-flow and sits on close to RMB 1 billion net cash. GIC has a 17% stake in the company.
Major risk will be natural disaster which may impact its ability to cultivate vegetables. Not too sure whether the food price controls will lead to a margin squeeze. Management remains bullish and states that the price control consist primarily of subsidies to lower cost of production and distribution. Let's see whether it continues to sustain its amazing growth rates.
(Vested)
http://info.sgx.com/webcoranncatth.nsf/V...70010B518/$file/Minzhong_1HFY2011_PressRelease_14Feb11.pdf?openelement [Press Release]
http://info.sgx.com/webcoranncatth.nsf/V...7000FE0F4/$file/Minzhong_2Q2011_Results_14Feb11.pdf?openelement [SGX Announcement]
http://info.sgx.com/webcoranncatth.nsf/V...7001203CB/$file/ChinaMinzhong_1HFY2011_ResultsPresentation_14Feb11.pdf?openelement [PPT Slides]
http://info.sgx.com/webcoranncatth.nsf/V...7000F7B14/$file/Annt-UseofIPOProceeds-14Feb2011.pdf?openelement [Acquisitions]
China Minzhong continues to grow at amazing speed backed by increasingly high demand for vegetables and growing cultivation space and processing plants. It experienced growth in revenue, profitability and margins. Operating cash-flow dipped slightly but I expect it to be boosted in 2H 11 when cash proceeds from 2Q and 3Q sales are recognized. Being an agriculture company, its profits and cash-flow are seasonally so do not extrapolate forward. Minzhong continues to generate good cash-flow and sits on close to RMB 1 billion net cash. GIC has a 17% stake in the company.
Major risk will be natural disaster which may impact its ability to cultivate vegetables. Not too sure whether the food price controls will lead to a margin squeeze. Management remains bullish and states that the price control consist primarily of subsidies to lower cost of production and distribution. Let's see whether it continues to sustain its amazing growth rates.
(Vested)