The following comment (a response to abb's question above) was emailed to us by a "shy" NextInsight reader for re-posting in this thread:
"Sino Grandness has developed the skills of dealing equitably with farmer co-operatives, through years of canning vegetables for export.
"In its initial years, Garden Fresh relied on contract manufacturers to produce fruit juice. Starting 4Q 12, its own factory in Sichuan produce its own puree and juice, and even though this factory supplied 20% of the sales, GPM rose to 46% in that quarter when the normal was 41%."
Pardon me for being the devil advocate.
Tingyi (kangshifu) and Wahaha are certainly the leading brands (No 1 or No 2) in their respective segments.
But Garden Fresh is relatively unheard off.
And Loquat, while known for its medicinal effect is not a common drink in China.
Till now, I am still skeptical of the craze over loquat juice and the corresponding high GPM of the business.
The following comment (a response to Azzaramich's post above) was emailed to us by the same "shy" NextInsight reader for re-posting in this thread:
"Azzaramich:
Sino Grandness CEO has said before that Garden Fresh would have floundered had it produced common beverages. Supermarket chains are unlikely to add a new brand of common beverage.
"Loquat juice came into being fortuitously, when a researcher posted to Sichuan, where loquat is grown in abundance, decided to make juice from the fruit.
Sales by Garden Fresh has been surging:
2010 RMB 180m
2011 RMB 402m
2012, RMB 873m.
"With the RMB 290m indicative orders received during the Chengdu trade fair in Mar 13, sales in 2013 should be strong.
"The management shared during the recent AGM that copycats, riding on loquat juice popularity, have yet to pose a serious threat.
"Investing in Sino Grandness is not risk-free. The risks include a decline in the Garden Fresh brand. If the management keeps up brand building, other risks should diminish when Garden Fresh discloses more of its operations in preparation of IPO in Hong Kong. The company will be much stronger when the RMB 370m bonds are converted into equity rendering Garden Fresh debt-free, and when IPO money flows in."
After seeing the eye-popping run in Sino Grandness today, I found this second posting of this thread. Sino G was only 21 cents in July 2010!!! Wonder if streamyx88 is still holding the shares. It would be a 6-bagger. Streamyx88, are u out there?
streamyx88 wrote: since my first post on 15june, sino grandness has been rising steadily from 21c to 31.5c today on the back of buy calls from DMG and Phillip securities (i suppose if it is cheap enough, sooner or later someone will take notice) based on chart, near term resistance is at 32c which is why i think it failed to move higher for the time being despite phillip buy call report company will presenting at the following brokers\' offices between 12-22july: AmFraser Securities Pte. Ltd. CIMB Securities (Singapore) Pte. Ltd. DMG & Partners Securities Pte. Ltd. Lim & Tan Securities Pte. Ltd. Phillip Securities Pte. Ltd. UOB Kay Hian Private Limited let\'s see if the 32c resistance can be taken out by then cheers streamyx88
The stock price has been very strongly upward. From a psychological point of view, it is reflecting a very high target price by the market as knowledgeable investors accumulate in a hurry. Just my 2 cents' worth.
I get a feeling that $2 is within reach before long
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