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soonchew, i second your decision. Always wise to buy "No news" stock and once it catch on the $$ train, its too fast for most investors to buy-in. Now i seldom buy those "bad news" stock, like OSIM, very suay ... the bad news keep coming in.. dunno when's the real bottomline.
Now got chance to vest in more lots.....
hmm.. quite a lot of sell down now at 0.54.. what happen? hmm..
market overall today is quite bad though.. correction coming ???
agreed, this one always U-turn when it hit around 0.52-0.55... When will be the results released ? This week?
Their cost of sales, distribution cost & administrative expenses are way too high during 3Q results. Hope they can improve this time in 4Q.
I think from a analytical point of view, why would Dyno with a prospectus forecast of 1186 million revenue this year, invest 29.9% in Fabchem, China company and yet willing to pay up to $0.70+ per share (once conditions are met) ? They probably had did their maths and calculated the estimated company projected worth of this investment.
Main Reason is to have a reliable partner to penetrate into international business, especially in china, Coal mining is the world top few industries and explosives equipment are essential for industrial expansion. Thus, if you were to ask me will this counter be another CAO or Hengxin, i guess not.
If it's not going to move down, its just a matter of time this counter get the limelight and moves steadily upwards. Still dependent on BB's effort to push up this counter
you seen very confident. i'll buy 100lots to support you.
Quarter results should be out pretty soon. If nothing goes wrong, i would guess it's positive news based on similar growth as per last quarter. I anticipate it to reach target price of 0.63-0.64 within these 1-2 months. The strategic alliance with Dyno will symbolise the future plans to increase sales to Aussie markets and international markets. Nonetheless, the current production level are not satisfying the hungry PRC market and the new production plant might make a huge improvement in sales revenues.
This stock is gonna rebound very soon till around 0.65. Here's 3 major reasons :
- New production facility being built which produce up to 60 million units of detonator
- Applying for licence to export - reducing cost of sales therfore increasing profits.
- Investments from Dyno. Just check out Dyno market cap right now and the international market that they penetrated right now.
All the talks about this china stock becoming the next burst bubble is simply nonsense. No foreign companies will invest 29.9% of company share when there is no substantial market value and business. We're talking about millions of dollars on acquiring shares from Fabchem.
This stock is just at IPO level, you gonna be patient with the shareholder returns.
no TA but a comment. Is the mgt generating value for shareholders? Is trying to selll the company set higher agenda than generating values?
I am not vested. Look at what happen to ZhongGuo JiLong, China Food now! Fabchem can be next!
GOT IT! AT 0.56.
Hopefully can reach 0.7 level soon as predicted by Simon Loh
Its time for this to go up ! Buy Buy ! The time is today !
Cheong huh!
No sand buy explosive.
Following are some informations on Fabchem website.
The Group?s principal business activity is in the production and sale of commercial explosives products, comprising explosive devices, initiators and detonators, both under its own brand name (?Yinguang?) and those of third parties. It also provides after-sales services to its customers such as technical assistance related to the detonating activities.
The Group?s products are mainly used by the mining, hydroelectric and infrastructure construction industries, for activities such as coal mining, oil exploration, construction of hydroelectric dams, roads and railways, and large construction projects. Its range of products can be broadly categorised as follows
- Explosive devices, such as boosters and tube charges. These devices are used to enhance the power of the explosions.
- Industrial fuse and initiating explosive devices, such as detonating cords and nonel tubes. These devices are used to initiate the detonation process.
- Industrial detonators, such as nonel detontators and piston nonel detontators. These devices are mainly used to initiate explosions, either through boosters or applied directly on the explosives.
Product Distribution and Market Segment
The Group sells its products to both domestic and overseas customers.
In the domestic market, its products are distributed mainly through local distributors in major provinces such as Henan, Shanxi and Zhejiang, and in major cities such as Beijing and Shanghai. It also sells directly to end-users such as mining and construction companies.
The US and Australia are the Group?s two largest overseas markets in terms of revenue contribution. For the overseas market, the Group exports its products through export distributors to customers in more than 10 countries, including the US, Australia and South Africa. Its two largest overseas customers are Orica and Beston Chemical. Orica is the world?s largest supplier of explosive products while Beston Chemical is a worldwide supplier of blasting accessories. The Group also sells its products to export distributors in China, who in turn export the products to their overseas customers.
Fabchem largest overeas customer are Orica and Beston Chemical. The following are Orica performance
Orica Delivers Strong Results and Growth in Year of Transition
Orica today announced a Net Profit After Tax and Significant Items for the year ended 30 September 2006 of $539 million, up 159% over the previous year. Excluding individually Significant Items, Net Profit after Tax was $380 million, up 12% on 2005. Sales revenue increased 5% to $5.4 billion.
The board of directors has declared a 48 cents per share final dividend, bringing the total dividend for 2006 to 74 cents per share, an increase of 4% over the 2005 total dividend. The 2006 total dividend is franked at 41%.
Orica?s Managing Director and Chief Executive Officer, Graeme Liebelt, said the results showed the continued strength of Orica?s underlying earnings in a year when Orica?s business portfolio had been significantly re-shaped for the future.
?The record results from Mining Services and Chemical Services, underscore strong trading conditions in their respective markets. We believe these trends will continue as customers in the resources sector strive to increase their volume of output, both from existing and new mines?, Mr Liebelt said.
?This year has seen Orica become the true global leader in Mining Services. We now have operations in 50 countries and sell into twice that many, exposing the company to both geographic and market growth opportunities?, he said.
Earnings from the Consumer Products division were down marginally on the prior year, a pleasing performance in light of softer market conditions.
?Consumer Products has improved its competitive position in 2006 and is well positioned for any recovery in overall market conditions?, Mr Liebelt said.
Chemnet?s earnings were down 26% reflecting a range of factors including difficult trading conditions in the Australian and New Zealand manufacturing sectors and loss of market share. The previously announced restructuring program resulted in cost savings in the second half of $9 million and more are expected in the coming year.
?In addition to the strength of our core earnings, during 2006 we have laid the foundations for a period of sustained profit improvement through a significant re-shaping of Orica. The divestment of Qenos and Incitec Pivot, the acquisition of the Dyno Nobel businesses and recently the Minova acquisition, position Orica as one of the few businesses based in Australia that can claim to be a true global leader,? Mr Liebelt said.
?The business platforms that now make up the group offer growth potential as well as a less volatile earnings stream,? Mr Liebelt said.
Subject to global economic conditions, group net profit before significant items in 2007, is expected to be higher than that reported in 2006, as we look forward to a full year contribution from the acquired Dyno businesses and recently commissioned ammonium nitrate expansion at Yarwun, in addition to improved earnings across our existing businesses. We also expect a nine month earnings contribution from the recently announced Minova acquisition.
November 13, 2006
· Contacts:
- Greg Slade, Investor Relations Manager: (03) 9665 7844 Mob: 0434 603 445
- John Fetter, Group Manager, Corporate Affairs: (03) 9665 7870 Mob: 0412 311 371
Fabchem website
http://www.fabchemchina.com/
The share price is at its lowest 0.570. Please visit the website and look at it account and the sector they are in and you would be convince ......... of the potential of this hidden gem.