14-02-2011, 09:48 AM
(This post was last modified: 23-10-2013, 03:23 PM by CityFarmer.)
Qingmei has dropped by 20% from 0.36 to 0.3 last Friday, after the announcement of Q2FY10 results. Net profit dropped by 1.3% compared to Q2FY09. The results are within expectation as it is operating near its full capacity.
The first stage of the installation of equipment and machineries for capacity expansion was completed in December 2010 and production is expected to be ramped up gradually in the next few months. The first stage expansion will increase its production capacity from 45.6m to 65m pairs of sports shoe soles, an increase of about 42.5%. Barring any other unforeseen delays or circumstances, the second stage installation will commence by July 2011. Upon completion of the second stage installation, its production capacity will increase to approximately 84.0 million pairs of sports shoes soles per annum, the total additional capacity form first and second stages of expansions represents about 84.2% increase from the existing capacity of 45.6m pairs. At the price of S$0.3, dividend yield is 8% and rolling PE is 3.7. Cash and cash equivalent is about S$12.66 cents per share. No long-term debt. Total current asset is RMB740.5m versus current liabilities of RMB260.3m. The cash and cash equivalent adjusted PE is 2.15. The valuation looks extremely attractive. The major problem with this company is its short listing history but at the current price of 0.305, I feel there is little downsize potential.
Vested.
The first stage of the installation of equipment and machineries for capacity expansion was completed in December 2010 and production is expected to be ramped up gradually in the next few months. The first stage expansion will increase its production capacity from 45.6m to 65m pairs of sports shoe soles, an increase of about 42.5%. Barring any other unforeseen delays or circumstances, the second stage installation will commence by July 2011. Upon completion of the second stage installation, its production capacity will increase to approximately 84.0 million pairs of sports shoes soles per annum, the total additional capacity form first and second stages of expansions represents about 84.2% increase from the existing capacity of 45.6m pairs. At the price of S$0.3, dividend yield is 8% and rolling PE is 3.7. Cash and cash equivalent is about S$12.66 cents per share. No long-term debt. Total current asset is RMB740.5m versus current liabilities of RMB260.3m. The cash and cash equivalent adjusted PE is 2.15. The valuation looks extremely attractive. The major problem with this company is its short listing history but at the current price of 0.305, I feel there is little downsize potential.
Vested.