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It jumped after a brokerage raised hopes that the firm will report strong full-year earnings for 2006 and 2007.
FerroChina
"FerroChina looks interesting with a hefty upside potential along with several share price catalysts emerging, as it achieves its expansion milestones," Tan said.
He added that the firm's earnings are likely to be buoyed by both its capacity expansion and acquisitions. The stock could potentially trade up to $2, Tan said.
Singaporegal,
I wasn't looking at the TA then. Have not attended the TA course yet. I was checking and it seems the PE was low, hence attempted to buy at $0.815 (was "eyeing since $0.67, but missed a few times).
Congrats!
Its on a strong uptrend now.
Hi chew8888, I don't use support or resistance levels so I can't comment on that.
Singaporegal, from the TA, what do you think support and resistent level??
IRON & STEEL
FerroChina to increase galv exports despite shortages at home
Singapore 15 November 2006 06:33
Privately-owned galvanized steelmaker FerroChina is planning to boost exports
next year despite a continuing shortage of galvanized steel in China.
FerroChina, a 900,000 tpy producer based in Changshu city in eastern Jiangsu
province, wants to increase exports so they account for 40-60 percent of total
revenue in 2007, company cfo Nelson Fong said at a press conference in
Singapore, where FerroChina is listed..
Exports provided 39.1 percent of the company?s revenue in the first nine months of
2006, up from just 1.5 percent in the same period last year.
There is more profit to be made in the export market, which has encouraged
FerroChina to increase overseas sales despite China?s status as a net importer of
galvanized products, the company said.
Chinese demand is likely to be 15.6 million tonnes this year, compared with supply
of just 12.7 million tonnes. The deficit will gradually narrow for the rest of the
decade with demand set to reach 21.3 million tonnes and supply 20.8 million
tonnes in 2010, FerroChina predicted.
The continuing deficit, combined with good overseas demand, means FerroChina is
confident about its future development, Fong said.
The company plans to increase capacity to 1.5-1.6 million tpy in 2007 and 2.4
million tpy in 2008 through expanding operations at two cold rolling mills and
boosting capacity at Changshu Everbright Material, a thin gauge galvanized
steelmaker in which it holds a 35.5 percent stake.
It also plans to complete an upgrade of its 300,000 tpy No.1 galvanizing line in
December and run the line at full capacity from March (MB Jul 27). The company
has been operating the line at 50 percent capacity since June.
The company posted a strong rise in profit in the third quarter due to the growth in
exports and good international prices, it said.
Net profit rose 33.8 percent year-on-year to 54.3 million yuan ($6.9 million), while
revenue hit 906.7 million yuan, up from 596.5 million yuan a year earlier.
Net profit more than doubled in the first nine months of the year to 213.8 million
yuan from 99.1 million yuan, while revenue rose 79.3 percent to 2.6 billion yuan.
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