Viz Branz

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(07-05-2012, 08:22 PM)freedom Wrote: Super Group has low tax expense, otherwise, the net profit margin of both companies would be similar. last time I checked.

Me suspect that Viz Branz valuation is way too low. It could easily climb to 60+ cts but because its illiquid, it climb is so slow.

Me think, somebody is every day slowly pick up the stock for reason that that Shanghai Bridge shine model is working and making money already!

Need to check it out yourself.
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I agree with dydx that 3QFY2012 result is lacklustre. The company must have raised price of its products during the quarter, impacting sales in the important PRC market by -3.9% during the quarter.

The lower sales volume will naturally result in lower cost of sales, so not all the reduction in COGS was due to the recent fall in prices of key raw materials. Cost reduction activities, especially in marketing & distribution and admin, had helped to contribute significantly to the improvement in bottomline too. But how much cost can a company continue to cut?

Based on my reading of the 3QFY2012 result, I think that sale of instant beverages is a tough business and the business environment is difficult to create an economic moat.
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I guess, sooner or later, Viz Branz will be bought up by a trade buyer, or even a PE fund. It has most of good qualities a serious investor is looking for - a sustainable business with good profitability and solid FCF, further growth potential, a proven management team, and a nice size (i.e. not too big, and not too small).
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Tongue 
(08-05-2012, 03:49 PM)wsreader Wrote: I agree with dydx that 3QFY2012 result is lacklustre. The company must have raised price of its products during the quarter, impacting sales in the important PRC market by -3.9% during the quarter.

The lower sales volume will naturally result in lower cost of sales, so not all the reduction in COGS was due to the recent fall in prices of key raw materials. Cost reduction activities, especially in marketing & distribution and admin, had helped to contribute significantly to the improvement in bottomline too. But how much cost can a company continue to cut?

Based on my reading of the 3QFY2012 result, I think that sale of instant beverages is a tough business and the business environment is difficult to create an economic moat.

1.5M more Profit (35% up) with about the same Rev YoY and is considered lacklustre ? Big Grin


Cory

Just my Diary
corylogics.blogspot.com/


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Maybe people were expecting a profit increment matching the meteoric rise in share price!
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cory, u said it yourself ".....with about the same Rev YoY..... "
so was that no growth or high growth, u can come to your own conclusion.

credit must be given to the proven management team for the improved profit. My point was, there is a limit to earnings growth by cost cutting, without topline growth.

ymmv, feel free to disagree, we are here to discuss and share ideas.
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No problem at all. Yes we are here to share and learn.
Actually i do take all your comments and re-look their EPS against their current price after.

thanks !

Just my Diary
corylogics.blogspot.com/


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Viz Branz just halted trading pending an announcement...
http://info.sgx.com/webcorannc.nsf/Annou...endocument

Hor Say Liao?
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PROPOSED BONUS ISSUE

http://info.sgx.com/webcoranncatth.nsf/V...900127197/$file/Proposed_Bonus_Issue.pdf?openelement

1 for 1.

As usual, template answers for this bonus issue.

The Bonus Issue is undertaken to:
(a) reward Shareholders for their loyalty to, and continuing support for, the Company;
(b) increase the liquidity of Shares available for trading in the market;
© increase the accessibility of investments in the Company to more investors and encourage participation by investors;
(d) broaden the Shareholder base of the Company; and
(e) increase the issued share capital base of the Company to reflect the growth and expansion of the business of the Company and its subsidiaries.

But, I think it will have a positive impact on the share price though Big Grin
and zero impact on the earning. Tongue
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I am monitoring the CBB vs CKP case, for the sake of educating myself.

If CKP does not ask for the transfer of the 15% share before book closing date and assuming CBB continue to enjoy the incentive awarded before the transfer, CBB holding will become larger than CKP after transfer the 15% (pre-bonus) as in the settlement.

Pre-bonus share
CKP : 23.25%
CBB : 50.32%

After bonus before transfer of 15%, the holding % remain the same.
CKP : 23.25%
CBB : 50.32%

After bonus and transfer of the 15% (diluted to 7.5% as number of share remain the same)
CKP : 30.75%
CBB : 42.82%

Interesting.... CKP will make a strong objection i assume...
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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