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Any opinion about Novo Group
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tora10
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18-Mar-2010 08:43
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nice. looks like this is a positive then. thanks!
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grandmaster89
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18-Mar-2010 00:24
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Novo source their iron ore from Brazil. If there are problems, then the Chinese steel mills will turn to Brazilian ore... :)
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grandmaster89
Veteran |
18-Mar-2010 00:22
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CIMB and Novo has close ties. Btw you should read the CIMB research report on Novo's site. Their analysis is quite good and spot on. They already predicted that 2H 10 will account for 70% of the FY 10 earnings. Juding by Novo's 3Q 10 result, it looks to be spot on haha !
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tora10
Member |
17-Mar-2010 23:16
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china and aussieland are having a bit of a squabble over iron prices. the mining companies want to up the price by 90%. chinese companies say siao! see: http://www.terradaily.com/reports/Australia_urges_China_to_keep_out_of_iron_ore_talks_999.html any chance this will negatively impact this counter? |
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risktaker
Supreme |
17-Mar-2010 22:40
Yells: "Sometimes you think you know, but in fact you dont" |
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can or not CIMB give genting 1.5......... Now 0.41 for this baby..... I will observe a while before i buy :P But looks good in all angle
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grandmaster89
Veteran |
17-Mar-2010 21:15
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Things I noticed - 1) Novo's posted its highest quarterly net profit in its operating history of US$4.7 million. This is due to increased steel prices, higher margins trading contracts and new revenue streams. 2) Novo's revenue has been increasing for the past 5 consecutive quarters. This is due to its continued expansion and diversification into different revenue stream over the past 12 months - its JV with POSCO, shipping company, distribution centre in HK and PRC and coal trading. 3) Novo's Q3 net margin hit 3.68% which far exceeds its 2.52% net margin in 1H 10. This can be attributable to its acquisition of a shipping company which allows it to control its transport and logistic expenses. Its margin exceeds established players like Noble Group. 4) Novo's equity increased to US$54 million due to the recent share placement and retained earnings. The company needs to grow its size in tandem with its earnings to receive further institutional awareness. 5) Novo's YTD ROE already exceeds 18%. This is commendable considering that the company net gearing is zero. 6) The increase in inventories is due to its expansion into steel semi-finished and finished product distribution within the PRC. This means that it has to keep inventories. In 2009, it was primarily a trader and hence held zero inventory. The inventory levels will rise further once its 2 steel plants are ready in 2010 and 2011 respectively. 7) The company 9M 10 EPS stands at US$0.0155 while its NAV stands at US$0.083. The stock is clearly under-valued PE wise. 8) Novo has a net cash position of US$13 million. This figure will slowly decrease due to its expansion plans. There are no near-term liquidity risk. 9) Their steel processing plant will be ready in 2H 2010 and a scrap processing plant (US$24 million investment) will be ready in 2011. There are no news on further acquisition like mines and vessels. 10) Cash-flow was negative. This is due to Novo's seasonal earning patterns. While many companies tend to adopt the large number of small contracts, Novo (due to its size) adopts a small number of very large contracts to focus on. As a result, its earnings do fluctuate quarterly. The bulk of its revenue were booked towards the end of the quarter hence its receivables grew substantially. I expect the cash to flow in Q4. Novo recorded positive operating and free cash-flow in 2Q. 11) Novo looks set to beat its record FY 08 earnings of US$11.5 million. I expect the company's earnings to continue growing provided raw material prices remain stable. I think Q4 results will be even better due to greater contribution of the coal trading division. Coal trading only contributed US$19.5 million to the Q3 revenue. It will take time for Novo to become a regional coal player. It currently ships coal from Indonesia to India and China power plants. Coal trading only started in Dec 2009 (half way through the quarter) so we can expect a doubling of its contribution in Q4 assuming they can secure similar size contracts. If companies like Keppel and Semby continue to win rigs contracts, Novo's JV with POSCO steel will reap dividends. POSCO Steel, Korea largest steel mill, is one of the 5 steel mills in the world that supplies high quality offshore steel to rig industries. POSCO did a JV with HG Metal and Novo Group to distribute this steel product within SEA in June 2009. In the next 3 quarters (2H 2010), Novo's steel processing plant will be operational in Tianjin. It is capable of producing 100,000 MT hot-rolled coil and 100,000 MT cold-rolled coil to be cut, slitted and packed for distribution for local market. This will be a positive for Novo's revenue and earnings In 2011, Novo's scrap processing plant will be operational. It is also building a port near the plant which is capable of handling 100,000 tonnes of products at one time. The plant will have an initial processing capacity of 1 million tonnes. The future looks very bright for Novo supporters. |
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grandmaster89
Veteran |
17-Mar-2010 21:11
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CIMB has given a TP of 41 cents in late Jan 2010. Its 9M 10 EPS is 1.55 US cents. It is currently trading at single digit PE...
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risktaker
Supreme |
17-Mar-2010 21:03
Yells: "Sometimes you think you know, but in fact you dont" |
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wah lao i queue @ 0.225 today...... cant even get it. I wonder whats NOVO TP when their Dual listing approved in HK. Any idea ?
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EVO_IX
Member |
17-Mar-2010 15:18
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Any reason why the slowdown at 0.235 mark? 422% in net profit is amazing... |
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susan66
Master |
16-Mar-2010 19:32
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So engine get started already, no more standby mode, going to cheong?? 
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risktaker
Supreme |
16-Mar-2010 19:18
Yells: "Sometimes you think you know, but in fact you dont" |
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Wah Beng ... My friend call me in the morning telling me Novo Novo then I hear Noble lol DAMN DID I MISS anything ? |
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grandmaster89
Veteran |
16-Mar-2010 11:40
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Novo Group Net Profit surges 422% to US$ 4.7 million in 3Q FY2010 Revenue grew by 67.7% to $ 127.7 million Gross profit up by 129% to US$ 18.7 million from US$ 8.1 million in 3Q FY2009 Strong performance by international steel trading and domestic trade and distribution divisions Group expands to scrap processing and plans primary dual listing in SEHK SINGAPORE – 15 March 2009 - Mainboard listed Novo Group Ltd. (“Novo” or the “Group”) （新源集团有限公司, a global steel and coal supply-chain management company, is pleased to announce its 3Q FY2010 results for the financial period ended 31 January 2010. Group revenue for 3Q FY2010 improved to US$ 127.7 million, an increase of 67.7% from US$ 76.2 million in 3Q FY2009. This significant improvement was attributed to the performance of the Group’s international steel trading division, contributing 85.7% of the Group’s total revenue or US$ 109.5 million, representing an increase of 43.7% over that of the corresponding financial period. This increase was due to the growth in demand of semi-finished products in South East Asia market and the increase in steel price. With this strong growth in revenue, the Group also saw its gross profit improved to US$ 18.7 million in 3Q FY2010 from US$ 8.2 million in 3Q FY2009. Consequently gross profit margin improved to 14.6% in 3Q FY2010 from 10.7% in 3Q FY2009. These improvements were attributed to the increase in steel prices coupled with the change of trading terms for certain major contracts during the period under review. The Group managed to derive other operating income of US$ 0.4 million in 3Q FY2010 from transportation income arising from domestic trade and distribution in Hong Kong and a cancellation fee from a trading contract recorded in 3Q FY2010. On the expense side, distribution and selling expense increased to US$ 11.9 million in 3Q FY2010 from US$ 5.9 million in 3Q FY2009. This is in tandem with the revenue growth of the international steel trading and change of trading terms for certain major contracts in 3Q FY2010. Administrative expense also increased to US$ 1.7 million in 3Q FY2010 from US$ 1.1 million in the same corresponding period due to the professional fee incurred. Finance costs increased by 25% to US 0.2 million in 3Q FY2010 due to more bills discounted to financial institutions. Overall the Group net profit grew significantly to US$ 4.7 million in 3Q FY2010 up by 422% from US$ 0.9 million in 3Q FY2009. Earnings per share in 3Q FY2010 rose to 0.78 US cents from 0.14 US cents in For the year-to-date comparison, Group revenue in 9 months FY2010 (9M FY2010) was lower at US$ 345.7 million compared to US$ 423.6 million in 9 months FY2009 (9M FY2009) but gross profit and net income in 9M FY2010 went up to US$ 51.7 million and US$ 10.1 million respectively compared to gross profit and net income of US$ 40.6 million and US$ 1.1 million in 9M FY2009. Earnings per share in 9M FY2010 grew to 1.68 US cents from 0.18 US cents in 9M FY2009. Commenting on the Group and the Group’s business division’s performance, Mr. Dicky Yu, Novo’s Executive Chairman said the Group’s international steel trade division has benefited from the high demand in the PRC market for raw materials specifically iron ore and coal. “The PRC will continue to be the world’s leading consumer of these raw materials and also it will continue to be our main market” he added. In order to further tap this opportunity, the Group has secured fix allocations of certain quantity of iron ore to be supplied by major iron ore mines which will form stable income for the Group. Mr. Yu also shared that Novo is further expanding its business by venturing into scrap processing which he believes will be another growth engine for Novo. Scrap is used as a feedstock in steel production by electric furnace. During this period under review, Novo announced that it has obtained a letter of approval-in-principle from the local authority in PRC that the 500 metres long Yangtze River coastal line together with approximately 333,000 sqm of land be reserved for the development of the scrap processing plant. The plant will commence its production in 2011 and will perform scrap processing, cutting and slitting of steel products with targeted annual production capacity of 2 million tonnes. The Group will also build a port to accommodate shipment of raw materials up to 100,000 tonnes at a time. The plant will benefit the electric furnace steel manufacturers, ship breaking business and logistic of scrap processing in Jiangsu Province and nearby area. Estimated capital expenditure for this venture is approximately US$ 24 million to be funded through internal resources. The Company has on 7 January 2010 announced its plan to have a dual listing of its shares in the Mainboard of the Stock Exchange of Hong Kong. The Group believes that this move will be beneficial since the two markets attract different investor profiles and it would be advantageous to tap into the two markets when opportunity arises. Furthermore it would enable the Group to have exposure to a wider range of private and institutional investors and increase the liquidity of the shares. This is also inline with the Group’s focus on its business operation in the PRC which is a key factor in long term growth and development. |
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grandmaster89
Veteran |
15-Mar-2010 14:10
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Diversified ? I think they are still too under-diversified. They should expand into fleet management, mining, oil trading, grain, soybeans and financing. But this will take time. Currently, they are focused on steel supply chain and creating a coal supply chain. Should take 2-3 years before the coal supply chain is fully formed. A supply chain should consist of mines, vessels, financing, logistics, processing plants and warehouses.
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pharoah88
Supreme |
15-Mar-2010 13:00
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sEEms like there so many lObangs in this company. Management is creative, innovative, diversive, everything also on. What are their strengths in all these diversification? |
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grandmaster89
Veteran |
14-Mar-2010 01:17
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I am looking out for the following things -
a) Impact on its new coal trading division on its gross profit and tonnage volume. Elaboration on its plans to grow this segment ie securing long term trading contracts with power plants. b) Positive impact on the gross margins with the acquisition of a shipping company. Any third party revenue contribution ? Any new vessel acquisitions ? c) Quarterly profits should exceed US$2 million. Growth in tonnage volume. d) Outlook on company's acquisition on coal and iron ore mines. Update on the construction of a steel processing plant which should be ready in 2H 10 and another plant in 2011. e) Info on dual listing in HKSE and EGM dates |
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susan66
Master |
14-Mar-2010 00:52
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I think now is on standby mode already, if it's able to break 0.235 then uptrend may begin. 
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pharoah88
Supreme |
13-Mar-2010 15:59
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dec2000 i don't know this counter. If you can provide a summary of its background and why you think it will make money for you, i can then continue to learn about this counter. I am happy to find any new opportunity to join you in seek of profit. Have a Nice Weekend!
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mic1838
Member |
13-Mar-2010 13:52
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Why the person want to stop this counter to fly high?? What are his intentions?? What does he intend to achieve?? Can you explain...
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mic1838
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10-Mar-2010 21:08
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Who is the one???? Name him for all to know...
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highrisk1
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10-Mar-2010 15:01
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someone trying to stop this counter to fly high | ||||
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