Dukang Distillers

Does anyone have any thought on Dukang? Price seems quite stable now

Yes, it's stable at around 22-24 cents. I believe the market is waiting with bated breath for the fullyear results. Just see if they will give a dividend and start share buyback.

In its announcement to SGX, Dukang had conveniently omitted its 4Q results so as to make its performance looked sparkling. This glittering set of results was also reported in the Straits Times of 30 August 2012 and could well misled unsuspecting investors to the stock without being aware that all may not be well with the company. A closer look at the quarterly performance of the company shows that Dukang nett quarterly profit has been on a downtrend after 2Q. Below are the data –
2012 – Revenue/Nett Profits
1Q – RMB 242M/RMB 36.5M
2Q – RMB 540M/RMB 94.4M
3Q – RMB 590M/RMB 62.4M
4Q – RMB 454M/RMB 24.7M
FY 12 – RMB 1,826M/RMB 218M [+29.4%]
Potential investors should do their own due diligence before jumping into such a stock as the risk of a deterioration in its results cannot be ruled out, if economic and business condition in China do not improve and its management failed to arrest the decline in profitability.

Observer2, you got it wrong. Info on the quarterly revenue and profit are made available by Dukang.

See page 15 and 22 , respectively, of the Powerpoint material uploaded to SGX website.

The URL is info.sgx.com/webcoranncatth.nsf/VwAttach...tion.pdf?openelement

 

As for the downtrend since 2Q, yes, you are correct but... there is a reason for it -- SEASONALITY.

In a year, the sale of baijiu peaks prior to Chinese  New Year --and then goes down -- and rises again 

Port – I based my facts on the “Full Year Results Financial Statement And Related Announcement” which would normally show the latest quarterly results together with the cumulative quarterly results. Companies that failed to incorporate the latest quarterly results for comparison purpose, especially if it is not good, may well have a motive for doing so.