Key takeaways from my 1-1 mgmt meeting with Fuxing CFO and IR Manager
- Acquisitions of three companies in electro plating services, colour dyeing, and dyed yarn supply business, if materialise, are expected to contribute significantly to Fuxing profits;
- Tax rebate likely to be in 4QFY10 or 1QFY11. i.e. net profit after tax should be higher;
- Super durable zipper to contribute progressively in 2011 and more in 2012;
- Shanghai & Qingdao plants are expected to reverse their operating losses in 2010 to make a positive contribution in 2011.
This writeup, along with other writeups on companies and other important financial information on STI component stocks and SIN listed reits can be found on my remisier blog ernestlim15.blogspot.com. I can be contacted at
crclk@yahoo.com.sg
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Hi happin, Thx for your comment. Typically I share my personal target price with my clients (with disclaimer definitely). Suffice it to say tt if mgmt can use their cash to make earnings accretive acquisitions, then it is likely to be re-rated. According to Bloomberg, consensus analyst tp is around $0.27. Do drop me an email if u want to discuss more. Have a gd wk ahead. Cheers el15
If the CFO is going around meeting anyone who is interested in Fuxing, then he deserves a pat on the back. That however makes me wonder why the stock cannot chiong.
The business of zipper manufacturing may not have high barriers to entry. How many companies do this business in China?
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