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Sinomem

Stock Watch: Sinomem

will try to Q at 0.505....

susan66 ( Date: 16-Jun-2010 00:48) Posted:

Yes, you are right, a lot of stocks turn bullish today. Now it really looks good, today's long bar tells us bull is serious this time. Can start buying liao!

kiasiDBT ( Date: 16-Jun-2010 00:42) Posted:

Broke upward from a contracting triangle on higher vol... bullish...CHEONG ARH....

This one is China or Singapore company ?

Resistance at $0.525, break that and next resistance is $0.545

Yes, you are right, a lot of stocks turn bullish today. Now it really looks good, today's long bar tells us bull is serious this time. Can start buying liao!

kiasiDBT ( Date: 16-Jun-2010 00:42) Posted:

Broke upward from a contracting triangle on higher vol... bullish...CHEONG ARH....

susan66 ( Date: 14-Jun-2010 22:52) Posted:

At the moment, it has found the support at around 0.47 but there is no direction yet. It stays within the tight range of 0.47 to 0.50. Although today close a bit higher, the volume are too thin, not much buying interest yet. Still need to see further for confirmation. If the support around 0.46-0.47 can't hold, it may go down fast. So have to wait & monitor if it is able to breakup with volume before making decision to buy.

Broke upward from a contracting triangle on higher vol... bullish...CHEONG ARH....

susan66 ( Date: 14-Jun-2010 22:52) Posted:

At the moment, it has found the support at around 0.47 but there is no direction yet. It stays within the tight range of 0.47 to 0.50. Although today close a bit higher, the volume are too thin, not much buying interest yet. Still need to see further for confirmation. If the support around 0.46-0.47 can't hold, it may go down fast. So have to wait & monitor if it is able to breakup with volume before making decision to buy.

kiasiDBT ( Date: 14-Jun-2010 17:18) Posted:

How bearish does the chart looks like, care to share your chart analysis.

Thks a lot

Broke above 50 liow on high vol

kiasiDBT ( Date: 15-Jun-2010 09:50) Posted:

Sinomem had intraday broke above the contracting triangle with more buying up.

susan66 ( Date: 14-Jun-2010 22:52) Posted:

At the moment, it has found the support at around 0.47 but there is no direction yet. It stays within the tight range of 0.47 to 0.50. Although today close a bit higher, the volume are too thin, not much buying interest yet. Still need to see further for confirmation. If the support around 0.46-0.47 can't hold, it may go down fast. So have to wait & monitor if it is able to breakup with volume before making decision to buy.

Sinomem had intraday broke above the contracting triangle with more buying up.

susan66 ( Date: 14-Jun-2010 22:52) Posted:

At the moment, it has found the support at around 0.47 but there is no direction yet. It stays within the tight range of 0.47 to 0.50. Although today close a bit higher, the volume are too thin, not much buying interest yet. Still need to see further for confirmation. If the support around 0.46-0.47 can't hold, it may go down fast. So have to wait & monitor if it is able to breakup with volume before making decision to buy.

kiasiDBT ( Date: 14-Jun-2010 17:18) Posted:

How bearish does the chart looks like, care to share your chart analysis.

Thks a lot

At the moment, it has found the support at around 0.47 but there is no direction yet. It stays within the tight range of 0.47 to 0.50. Although today close a bit higher, the volume are too thin, not much buying interest yet. Still need to see further for confirmation. If the support around 0.46-0.47 can't hold, it may go down fast. So have to wait & monitor if it is able to breakup with volume before making decision to buy.

kiasiDBT ( Date: 14-Jun-2010 17:18) Posted:

How bearish does the chart looks like, care to share your chart analysis.

Thks a lot

susan66 ( Date: 14-Jun-2010 01:21) Posted:

Whatever the reason, I don't think it's time to buy now, chart looks bearish. If break 0.475, better stay out first, might drop further, don't see any bottom yet!

Below info from my dealer regarding the Independent Auditor Report on Sinomem's subsidiary "Reyphon Agriceutical":

When this report was prepared, they are still unable to determine whether any adjustments made to it subsidiary (Reyphon Agriceutical) would affect the group's result. Apparently, the subsidiary has certain issues with its internal controls and outstanding matters. Their losses for the year was 641,000. As compared to Sinomem's Q1 profit, this is quite insignificant. You can do a comparison with Sinomem's Q1 profit results.

kiasiDBT ( Date: 14-Jun-2010 17:02) Posted:

There is nothing mentioned from the sgx announcement (see below) tat reython group which is a subsidary of sinomen is "not very well managed, and the auditor has misgivings on its audit records".

Extracted from the sgx announcement on 14th Apr:

Unaudited consolidated management accounts of subsidiary used in consolidation

As further disclosed in Note 2 to the financial statements, the audit of the financial statements of a

52% owned subsidiary, Reyphon Agriceutical Limited, including its subsidiaries, Jiangxi New Reyphon

Biochemical Co., Ltd (“JNR”) and Xi’an Reyphon Chemicals Co., Ltd (collectively known as the

“Reyphon Group”) for the financial year ended December 31, 2009 has not been completed as at the

date of the issuance of this report due to certain accounting and audit issues, including certain internal

control matters, and outstanding matters which have not yet been satisfactorily resolved. Accordingly,

management has used the unaudited consolidated management accounts of the Reyphon Group for

the purpose of preparing the consolidated financial statements of the group for the financial year

ended December 31, 2009. Based on the unaudited consolidated management accounts, the

Reyphon Group accounted for $38,440,000, $14,696,000, $24,630,000 and loss for the year of

$335,000 and comprehensive loss of $690,000 representing 11%, 5.8%, 19.4%, 1.5% and 4.1% of the

group’s total assets, attributable net assets, revenue, attributable profit and attributable total

comprehensive income respectively for the financial year ended December 31, 2009.

The auditors are unable to determine whether the unaudited consolidated management accounts of

the Reyphon Group are suitable for inclusion in the preparation of the consolidated financial

statements of the group and whether any adjustments and/or additional disclosures are necessary in

respect of the Reyphon Group to be included in the consolidated financial statements of the group.

The audit report dated April 13, 2009 on the financial statements of the company and the group for the

previous financial year ended December 31, 2008 (“FY 2008”) was qualified for the same reason as

set out in the preceding paragraph.

Qualified opinion on the Reyphon Group for FY 2008

The audit report dated April 27, 2009 on the financial statements of the Reyphon Group for FY 2008

was qualified in relation to revenue and trade receivables and payable of JNR as more fully described

in Note 43 to the financial statements. These matters relating to JNR have not been resolved as of the

date of this report.

Accordingly, the auditors are unable to determine whether any adjustments to the financial statements

of the Reyphon Group for December 31, 2008 would affect the group’s results, financial position,

changes in equity and cash flows for the financial year ended December 31, 2009.

greenrookie ( Date: 14-Jun-2010 00:21) Posted:

Hi guys,

I am looking to buy into this stock, but the auditor comments(from Deloitte) on reython group worries me. It seems that reython group which is a subsidary of sinomen is not very well managed, and the auditor has misgivings on its audit records, refer to sgx announcements dated 14 april.

Its assets and liability make up roughly 10 % of the group assets and liabilities, I am worried that the liabilities might be increased since proper auditing of the group is now done...

Anyone any comments, please trend carefully....

SINOMEM: Achieved 50%, 90% market share in pharma, dyestuff industries

http://www.nextinsight.biz/content/view/2528/79/

Written by Andrew Vanburen (China Correspondent)
Friday, 11 June 2010

FOR MOST companies, individual orders and contract signings would not ordinarily be headline material.

But for Sinomem Technology Ltd (SGX: SINO), a Singapore-based membrane producer for a wide range of applications, each order is worthy of mention, not only for the size of each contract, but also for the rapidly growing number of signings.

Six Greater China fund managers attending a recent trip organized by Aries Consulting and Financial PR to six listed firms in Fujian province were given an eye-opening tour by Sinomem management.

A major impetus driving Sinomem’s growth has been the strong showing by its wholly-owned China-based unit, Suntar Xiamen, which Sinomem calls its “core subsidiary.”

The Fujian province-based firm in the southeast of the country was established in 1996 along with its parent to provide integrated processes and engineering solutions for separation, purification and cleaner production practices in diverse industries via advanced membrane technology.

Suntar is based in the port city of Xiamen, a city that on a clear day is within naked-eye sight of outlying Taiwan islands, and is also a short commute of literally hundreds of sprawling factories, many of them funded by Taiwanese investment and all of them worried about how to meet increasingly stringent environmental wastewater treatment standards.

Filtration Sensation: Xiamen was the site of a recent visit by six fund managers sponsored by Aries Consulting and Financial PR to Sinomem's membrane manufacturing facilities.
Suntar: PRC’s top industrial membrane brand

The accomplishments of Sinomem’s core subsidiary are exemplary.

“We are striving to be a global leader in the development of advanced membrane technology for water purification, wastewater treatment and cleaner production,” Mr. Lan Chunguang, Vice President of Sinomem Technology Ltd and General Manager of the membrane technology division of the group, told our group of visiting fund managers.

Suntar has locked up an over 50% market share for membrane applications in China’s pharmaceutical sector, and an unbeatable 90%+ share of the membrane market serving the country’s massive dyestuff industry.

    Sinomem 1Q 2010 1Q 2009 % change
Revenue (sgd) 32.4 mln 20.9 mln +55%
Net profit 6.9 mln 5.0 mln +39%


It is also the leading company in China supplying membrane separation technology for fermentation broth, and the top provider of membranes for Nanofiltration (NF).

Getting more technical, the company is the leading provider of membrane technology for China’s industries applying UF, NF, continuous IX and chromatography technologies into production of Vitamin C, penicillin and 7-ACA production.

Its dyestuff desalinating technology membranes were responsible for rewriting China’s national industry standards, and as the top designer and developer of UF and fermentation processing separation technologies, the company has collected numerous awards and has several national patents under its belt.

Finally, due to its market-leading R&D work into membrane cleaning technology, Suntar has contributed 20 different special cleaning agents into the market, all currently used in industrial applications.

Practical applications of its myriad technologies are expansive.

Sinomem's market cap is 248.2 mln sgd, and its 52-week share price has ranged between 0.19-0.73 sgd, with a current P/E of 9.3x
Nearly 500 sets of its patented Flow-Cel UF systems with a total membrane area of up to tens of thousands of square meters have been sold and installed so far, with over 100,000 tons daily handling capacity.

In 2007, Suntar upgraded the Flow-Cel system, increasing the effective membrane area by 43% under constant hydraulic conditions, which substantially reduces the client’s investment cost.

“Requirements for wastewater and drinking water are getting more and more strict in China. Therefore, water pollution control will remain our main emphasis going forward, and membranes for water treatment are the most promising business growth area for us right now, and we currently give it top priority,” Mr. Lan said.

Also, its Nanofiltration (NF) membrane systems, highly suitable for the dyestuff industries as well as desalination applications, have provided over 200 clients at home and abroad with more than 400 spiral wound NF membrane units with total membrane area of 200,000 square meters.

Its ceramic membrane technology, as opposed to its polymer membranes, are increasingly being used by China’s big brand milk, juice, spirits, beer and even soy sauce and vinegar distillers.

Suntar’s ceramic membranes consist of symmetric porous material made from alumina, zirconia or titania, and offer pore sizes far, far too small to discern with the naked eye (0.01-10 microns).

Most Mainland Chinese opening their refrigerators right now would be hard pressed to not find a product inside that at one point may have passed through a Suntar membrane – porcelain or otherwise.

Suntar to the Rescue

Do Drink the Water: Sinomem Vice President Mr. Lan Chunguang (right) with Mr. Kent Lo, Senior Consultant with Aries Consulting, organizer of a recent site visit for fund managers to Fujian. Photo: Andrew Vanburen
Fujian is not only one of China’s most prosperous provinces, but also one of its fastest growing.

This growth covers both the GDP and the overall population.

So with a still vibrant economy and more people migrating into the province to hitch a ride on the growth, Suntar not only has more potential clients in factories looking to clean up their emissions, but also those entities looking to provide more clean drinking and household use water to the expanding urban populations.

But one of the most notable aspects to Suntar’s business, especially in China, is that it is not just ensuring clean water coming into our homes and cleaner wastewater reentering the water table that is driving growth for the business.

Its membrane process applications are seemingly endless, having already significantly expanded into the beverage, pharmaceutical, nutriceutical and rosin chemicals sectors.

A quick glance at Sinomem’s company profile -- and significant unit Suntar -- is rather difficult because operations so expansive can hardly be absorbed in a quick once-over.

But summarizing wherever possible, here is the company’s scope of operations:

Do Try This at Home: Suntar's products are not all hidden away in factories. They also make a portable system that ensures potable water straight from the tap. Photo: Bruce Zhang
The group, which also includes wholly-owned Singapore-listed subsidiaries Reyphon Agriceutical Ltd (SGX: CZ3) and Pharmesis International Ltd (SGX: PHM), is engaged in the manufacture of polymer membranes, membrane-based processes and development, engineering designs, equipment fabrication, system integration, on-site installation and commissioning, and after-sales technical support services.

In addition, it provides wastewater treatment services to municipal and industrial users usually under build-operate-transfer (BOT) arrangements, and engages in the trade of stainless steel and glucose products.

It also produces and sells gibberellin (a growth-regulating plant hormone), rosin based chemicals (gum rosin, polymerized rosin, synthetic camphor, etc), xanthan gum, sorbitol and other fermentation-based biochemical products, and also trades nutraceutical products including vitamins.

Furthermore, the company is involved in investment holding; purification and distribution of water, including desalination of water; development and manufacture of membrane materials and modules; production, research and development of tubular ceramic membranes; technology development, design, fabrication, and installation of equipment for environmental protection and integrated resource utilization; development and sale of property; construction; and estate management.

    Sinomem’s Major Water Treatment Deals Cubic meters
per day
Hubei Yinlu Foods 11,000
Shandong Yinlu Foods 7,200
Shijiazhuang Pharma 6,000
Shandong Fuxin Biotech 4,500
Crown Group (Jordan) 3,500
BH Industrial (Pakistan) 3,000
Xiamen Yinlu Foods 2,700
Klash Private (Pakistan) 2,000
Swire Coca-Cola (Xiamen) 600
Hefei Coca-Cola 600


Additionally, it engages in the manufacture of pharmaceutical ingredients and related products; trade of electronic equipment, software, and technology; development and manufacture of equipment and parts primarily for membrane filtration technology; sale of manufactured equipment and ancillary parts; and provision of installation and commissioning of relevant projects, and technical and consultation services.

Finally, it serves the pharmaceutical, nutriceutical, and food and beverage industries.

This is the abbreviated company description, actually, with the unabridged version more fitting for a much longer story and a much more patient readership.

The company’s extensive line of membrane products helps resolve problems of low yield, poor product quality, high energy consumption, heavy pollution and high operating costs.

Sinomem Vice President Mr. Lan Chunguang (second from right), along with Ms. Xiang Zhijing, Accountant (far right), Mr. Hans Jorg Heckmann, Vice President and Ms. He Meifang, Administrative Assistant. Photo: Andrew Vanburen

In short, it removes undesirable solutes and particles that have no business coming out the business end of a factory effluence pipe – or wastewater treatment plant.

But the company’s technology is also increasingly used to remove excess sugar from drinks so that they can truly be called “Diet Coke,” excess alcohol from spirits so they can remain at the common threshold of 80 proof (ie: 40% alcohol content) and superfluous active ingredients from pharmaceuticals to ensure that final package labeling is 100% accurate.

Suntar’s relationship with clients does not end when the fanfare of the contract signing is over and the last membrane had been installed, thus giving a very promising “recurring income” facet to its business.

“Around 20% of membrane efficiency is lost within 2-3 years. So users of these products need to either replace or install higher treatment capacity at the outset. In addition, membranes generally have a 5-7 year lifespan,” Mr. Lan said.

Thus, Sinomem has a hard time saying goodbye to existing clients, and hopes to have an even easier time saying hello to new ones.

Recent stories:

SINOMEM: Targeting 40 wastewater deals by 2012 from 12 now

KEVIN'S TAKE on ... SINOMEM TECHNOLOGY

SINOMEM 'remains under-valued and mispriced'

How bearish does the chart looks like, care to share your chart analysis.

Thks a lot

susan66 ( Date: 14-Jun-2010 01:21) Posted:

Whatever the reason, I don't think it's time to buy now, chart looks bearish. If break 0.475, better stay out first, might drop further, don't see any bottom yet!

greenrookie ( Date: 14-Jun-2010 00:21) Posted:

Hi guys,

I am looking to buy into this stock, but the auditor comments(from Deloitte) on reython group worries me. It seems that reython group which is a subsidary of sinomen is not very well managed, and the auditor has misgivings on its audit records, refer to sgx announcements dated 14 april.

Its assets and liability make up roughly 10 % of the group assets and liabilities, I am worried that the liabilities might be increased since proper auditing of the group is now done...

Anyone any comments, please trend carefully....

Revenue surge lifts Sinomem Q1 gain to $6.9m
- Rapid expansion into water treatment business to grow recurrent income base remains a focus
- Strong track record and integrated business model position the Group to tap on the immense
growth opportunities in China and abroad
14 May 2010 FOR IMMEDIATE RELEASE
Sinomem Technology Limited (Sinomem or the Group) has achieved a 39 per cent rise in
first-quarter net profit attributable to equity holders to $6.9 million, helped by a 55 per cent surge
in revenue to $32.4 million.
Our core business and key growth contributors, the membrane process & engineering and water
treatment segments, recorded a 41 per cent jump in revenue to $22.8 million.
Q1 earnings per share from continuing operations rose to 1.37 cents, from 1.07 cents a year earlier.
Sinomem’s managing director Dr Lan Weiguang remains optimistic about the Group’s future
expansion plans, said “The global demand for water and wastewater treatment services continues
to swell and we see immense opportunities for us to grow both in China and abroad. With our
strong track record and integrated business model, we are now well poised to capitalise on these
opportunities and develop into a global integrated water solution provider. We expect our recurrent
income base to increase when all our BOT projects come on stream, further boosting the
robustness of our business model.”
ABOUT THE COMPANY
www.sinomem.com
Sinomem Technology Limited (“Sinomem” or the “Group”) is a global leading “clean” solution
provider. It develops advanced membrane materials and processes employed for water and
wastewater treatment and environment-friendly production processes in various industries such as
pharmaceutical, nutriceutical, food and beverage. The Group is currently the largest membrane
solution provider for industrial applications in China. The Group also owns one of the most
comprehensive membrane material product portfolio in the world.
In the past few years, the Group successfully secured 15 BOT and 3 TOT municipal wastewater
treatment projects in China with more than 600,000 ton/day treatment capacity. Water business
has recently become the Group’s new core business, replacing traditional membrane process and
engineering and biochemical production business as the largest profit contributor. Backed by

strong capability in innovative membrane material and process development, the Group is aiming

to transform into a global leading membrane based water solution provider.