Post Reply
121-140 of 140
agreed, seem like normal sane rule don't apply anymore.
it showed that mkt sentiment overwrites everything, be it TA or FA.
http://www.remisiers.org/research//ti_20071205.pdf
What happen to this counter yesterday ?
Was at 1.2 range in the morning
But drop to 1.14 in the afternoon
This is a strong counter leh
last placement was @ 1.2
Immediate target 1.23 - 1.28 ?
China Energy also recovery liao
Big cheong time ?
Time to cheong baby
well, I am monitoring the 3-somes --> SinoFibre, Fibre & ChinaSky.
I buy in whenever either of them fall back on weakness. All are showing good growth.
yes, it spiked a few times
if u look at the growth plan, fibrechem more outstanding.
Sinotechfibre is a fundamentally solid company. At current price, it's a good opportunity to pick up some of its shares. I've noticed that it wasn't uncommon for the share price to spike up >10 cts in 1 trading session when buying interest was there.
recent quite some china stock down in "bull" market
well at lease it is still holding up well, unlike china energy....falling in a bullish mkt?
still bearish .....................
This counter is bearish for a while .. it looks will keep dropping for 1-3 days .. but good pick up arround 1.34 if there is bull signal.
price drop below 50days MA but on the pther hand, some critic on newspaper mentioned abt demand up for fibre as China approaching 2008 Olympic, so good or bad sign? 
not a good sign if cannot recover above $1.10
With the market in deep red sea now, think is a good buying opp.
CIMB - Sino Techfibre (S$1.27) - 3QFY07 results - Focusing on low-volume, high-margin
Within expectations 3Q07 net profit of Rmb121.6m was within our expectations and consensus. 3Q07 profit made up a decent 26% of our FY07 forecasts but 9M07 profits only made up 73% of our full-year forecasts, as 3Q compensated for a relatively weak 1H07. We believe our full-year numbers are realistic as we have already factored in PMP delays. The same cannot be said about the Street though. 9M07 earnings made up 70% Street estimates as consensus has yet to back out expected PMP contributions in 4Q07.
9M07 revenue rose 38% yoy, below expectations. Revenue growth was below expectations as sales volume did not seem to grow sequentially. By our estimates, Sino Techfibre shipped out 4.1m sqm of PU leather and 1.1m sqm of microfibre leather in each of the three quarters of 2007. There was no noticeable growth in volume sequentially. Revenue growth qoq came almost solely on average selling price (ASP) hikes. In 3Q07, ASPs for PU rose 4% qoq while ASPs for microfibre rose 10% qoq, maintaining an upward trend in ASPs. Management attributes the lack of volume growth to its strategy of being selective on low-volume, high-margin products, not competition. ASP gains were also not solely attributable to government-related sales, other channels also helped. Government-related sales continue to grow in importance, accounting for 14% of overall sales in 3Q07.
Margins made up for slower-than-expected sales. Group gross margins rose by 90bps qoq (2Q: 46.3%; 3Q: 47.2%). This was commendable and achieved despite rising raw material prices.
Pattern moulding paper (PMP) ready for rollout, TPU should gain sales traction in 2H08. Renovation for its PMP plant has been completed and PMP machinery is on track to arrive this month. Commercial production should start in 1Q08. Because of a long lead time for PMP equipment setup, management has also paid up a deposit to secure equipment to double current planned 40k meters capacity by end 2008. Aside from PMPM, another new product, TPU, is ready to launch in 2008 but is likely to gain sales traction only in 2H08, after a half-year gestation period. TPU is typically used to produce waterproof raincoats, tents and jackets and the new product expansion is partly to serve military customers.
Maintain Outperform and target price of S$2.02. We maintain our DCF-based target price (12% WACC, 2% LTG) at S$2.02. Stock trades at 8.0x P/E and 5.8x CY09 P/E valuations, similar to Fibrechem but at a 30%-discount to China Sky. We believe that such discounts reflect market?s doubts about Sino Techfibre?s PMP execution. We believe that such discounts should dissipate as the company proves they can deliver on PMP. Our target price implies only 9.3x CY09 P/E.
UOB KH - 3Q07: ASPs continue to rise
Sino Techfibre, a China-based synthetic leather manufacturer, reported net profit rose 21.6%yoy to Rmb122m, with revenue growing 28.6% yoy to Rmb331m. Results were flat qoq as no additional capacity commenced in 3Q07, higher revenue and net profit were on the back of rising ASPs.
ASPs continued to rise. Higher qoq results were due to higher ASPs. Price of its microfibre synthetic leather rose about 10%qoq to Rmb121/m while its price of PU synthetic leather rose about 4%qoq to Rmb49/m. As such, gross margin improved 1% qoq and 1.7% yoy to 47.2%. Rising ASPs were on the back of its strong R&D capability as Sino Techfibre increasingly introduces new products to its clients.
Outlook. For its original PU leather business which will faces more keen competition, Sino Techifbre will cease ramp up capacity. However, it will continue to develop further process technology on its existing PU line to upgrade to produce TPU which will give Sino Techfibre higher profitability and less competition (gross margin 50% vs 44%). Sino Techfibre will emphasize on expanding its new business, say, PMP and microfibre leather lines. Commercial production time table for PMP and 2 additional microfibre lines are set for 1Q08 and 4Q07 respectively.
Attractive valuation. As valuation gap between Sino Techfibre and Fibrechem has been widened after Sino Techfibre?s correction, we suggest switching to Sino Techfibre as a pure synthetic leather play. Due to the delay of its PMP till 2008, we will slightly cut our 2007 forecast by 2% to Rmb 489m (from Rmb498m) and lower our target price to S$2.10 (from S$2.12). However, as the execution risk of its PMP business has been reduced gradually, we suggest to accumulate before it is commercially in operation in 2008. Maintain BUY.