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My MFT friend said this one very soon will move up liao... I laugh at SHIM that SHIM is not a GOD !!!!!!!!
This one Singaporean or China Owner ??
It said its wholly-owned subsidiary Suntar Investment Pte Ltd will invest US$1.47m for a 70% stake in a joint venture firm that will produce rosin-based chemicals using Sinomem's proprietary processing technologies.
Rosin is considered an ideal raw material to substitute for crude oil to make benzene-derivatives such as fragrance, camphor and others.
The joint venture company, Rosin Chemical (Wuping) Co Ltd, will have a registered and paid-up capital of US$2.1m. Fujian Wuping Luzhou Forecast Chemical Co Ltd will take the remaining 30% stake.
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http://www.listedcompany.com/ir/sinomem/newsroom/Sinomem_1H2006.pdf
Extracted from my blog http://kelongstocks.blogspot.com
Technical Analysis
Sinomem in a bullish flag formation. Today's candlestick is another spinning top like formation after yesterday's harami candlestick which signalled a possible reversal. Today's candlestick does not appear to be a bullish reversal confirmation but worst appears to be over. A breakout from flag above 96 cents on high volume will send prices heading upwards to a technical target of $1.11. Negated if prices fall below 91.5 cents support.
Resistances: $1.00 (psychological support), $1.05 (resistance zone formed during recent high), $1.06 (all time high)
Supports: $0.915 (EMA 50), $0.90 (support during consolidation in late Mar to early Apr), $0.845 to $0.865 (gap support - 17 to 20 Mar 06)
..........continued at my blog
Extracted from my blog http://kelongstocks.blogspot.com
[B]Fundamental Analysis[/B]
1Q FY06 revenues and net profits grew 47% and 33% respectively compared to 1Q FY05 due to broadened membrane product range and strong contribution from downstream product manufacturing business. However, gross margins suffered as cost of sales rose faster than revenue growth due to high oil prices and high labour cost. Continued high oil prices will depress margins.
However, profitability of membrane manufacturing business should improve due to the lower cost of production of our new JV named Microdyn-Nadir Technology (Xiamen) Co., Ltd, which is expected to commence operation in the 2nd half of 2006. Also plans have been made to expand production of gibberellins in 4Q 2006.
At current prices, prices appear to be fairly valued and immediate fair value fo FY06 is pegged at 15x forward P/E or $0.97. Earnings are expected to accelerate in FY07 with full impact of membrane manufacturing arm and gibberellins and xanthan gum production. 12-month target based on 12x forward P/E for 2007 is $1.12.
hi gekkoworld, thanks for summarising the figures.
do drop by my blog for regular updates, if there is any counter you like to be analysed, please drop me a email (address at my blog)
Sales - 81.41 mln sgd vs 52.21 mln
Pretax profit - 27.35 mln sgd vs 21.75 mln
Net profit - 23.85 mln sgd vs 21.45 mln
EPS - 5.74 cents vs 5.36
Final div - 1 cent vs 1
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CIMB-GK Research said that the company's full-year profit came in 5 pct below its estimates "due to a contraction in its gross profit margin in the fourth quarter and an unexpected surge in tax rate on the expiry of tax holidays for a subsidiary."
The brokerage still has an "outperform" call on Sinomem with a target price of 0.92 sgd.
"We expect Sinomem to attract increasing investor interest from [the second quaretr of 2006] when its strategy starts to bear fruit," it said in a note.
Results commentary and TA available at http://kelongstocks.blogspot.com
STX Pan Ocean comments in yellow shoutbox