Foreland, still looking pretty

[hr]
[gangho 10-08-2012]:

These 3 s-chips seem to be much better bet in short and long term, as their sales/profit continue to grow strongly despite china slowing down. The price for both China Minzhong and Dukang are at their historical low too....
Dukang will be a good bet with price so low now. Expect strong 4q rev n profit as it has secured good opening orders from many major new customer during various trade fairs. Unlikely to have corporate governance as local Henan government is closely monitoring it and providing strong support to make it a national brand, competing against Mou Tai and bringing fame to Henan

The two most promising s-chips to accmulate for superb strong 4q result:
China Minzhong: peak season delayed to Apr/May 12 and based on 3q result, shd achieve EPS 6-8cts for 4q
Dukang: secured strong order from 2 trade fairs during Mar/Apr for fulfilment in 4q from its series of new premium products [w much higher margin than siwu brand] jiuzu dukang. can see quiet accumulation at 23 now.....
Good luck!
 
 

Gangho, One problem with Dukang is that it has 500M of cash and short term equ, yet it takes a loan of 100M from banks. Have you spoken to IR the reason for taking this huge amt of loan?

Dukang has completed the first phase of growth to become the largest baijiu maker in Henan. It has just announced the next phase of growth from 2012 to 2016, to grow revenue from RMB10 billion to RMB 100 bn within 5 years to become a truly National Brand. It is tapping bank loan for capital due to current poor equity mkt condition now, I believe. Will ask CEO during the next AGM.

Dukang's 9M FY2012 revenue has been only 1.3B RmB.

That implies Dukang might have achieved RMB 700 million which is possible as it has aggressively organized a few large trade fairs first part of the year, and in just one of them, it has already secured orders of at least RMB200 million: 1)【本网讯:30 Mar 2012】在刚刚结束的成都全国春季糖酒会上，阳杜康控股有限公司传来捷报：与杜康2012年合作签约的经销商中，首批进货打款至少2000万元的就有9家，涉及总金额超2亿元。据《华夏酒报》记者了解，这9家经销商分别来自广东、新疆、天津、河南、湖北等省市的7大城市，运作的是酒祖杜康、国花杜康等核心系列产品，其中个别经销商去年就开始与杜康合作,经从杜康酒相对较高的利润空间中尝到了不少甜头，而大部分则是首次与杜康合作，主要看重的是杜康强大的品牌优势以及强劲的发展势头。 2.【本网讯:26 Apr 2012】继山东之后，洛阳杜康控股在江苏的区域招商也亮出了不俗的成绩单：酒祖杜康、国花杜康、绵柔杜康三个系列产品现场签约额收获颇丰，另有100多位经销商表示已有合作意向。 据记者了解，上述招商成绩是洛阳杜康控股是于4月21日、22日，在中国糖酒食品经销商发展论坛江苏分论坛上取得的，该论坛按照区域分为多个系列，由糖烟酒周刊杂志社和中国糖酒食品优秀经销商俱乐部联合主办，洛阳杜康控股是其白酒行业仅有的两家重要战略合作伙伴之一。 3. Singapore & Taiwan, 11 June 2012 –SGX Mainboard-listed Dukang Distillers Holdings Limited (“Dukang Distillers” or “杜康控股有限公司”, and together with its subsidiaries, the “Group”), a leading producer of white liquor (“baijiu”) in Henan Province, China, has recently signed 20 new distributors following the successful hosting of its third “Annual National Trade Fair” in Luoyang City, Henan Province. As such, the total number of distributors for the Group’s Dukang brand has grown to 222 from 202 as of March 2012. This one-day event, hosted on 18 May 2012, received an overwhelming response with participation of over 2,000 attendees which consist of distributors and downstream retailers from Henan Province and the rest of China, as well as local government ministers and alcohol associations. “无可比拟的品牌先天优势，不逊色于国内任何名酒的产品品质，强大的资本实力，清晰的产品线结构，优秀的营销团队，强大的广告宣传支持以及丰厚的利润空间是众多经销商青睐杜康的主要原因。”对于为何在地产酒强势的江苏市场，杜康能够取得较好的招商成就，洛阳杜康控股销售公司常务副总经理马金全解释说。 凭借这些较为明显的综合优势，杜康在4月初在潍坊市举行的中国糖酒视频经销商发展论坛山东分论坛上，就曾在现场斩获成绩不俗的订货单，还吸引了一大批有合作意向的经销商，打响洛阳杜康控股按区域重点招商的第一炮。