greenrookie, u know the cfo CK Koh? he been energetic in promoting fuxing for a long time ...his hair turning white ....but the stock price is stubbornly stuck. my friends bought at 15 cents a yr ago --- still can't see a cvent of profit. w the acquisitions make a great diff to profits & stk price? wat do u say
i actually bought fuxing last year before but sold everything at a slight profit at 17 cents. I attended its Q2 and Q3 2010 briefing last yr, saw Mr Koh and chairman hong. Fuxing shld be a safe s-chip to buy. the main reason i sold was i am not quite sure how the acquisition may turn out to be. so, at 17 cents, i think valuation is abt 10+, which i think is quite good for a s-chip. how is it going for their super durable zipper? hv lost checking updates abt fuxing for a while. i think the price now is quite attractive but i guess i'll wait for its q2 result out first before deciding whether to enter again or not.
Hi joes, I expect the 2 companies to contribute 4-5 million to the bottom line this quarter. I am also expecting 50% increase in profits from a year ago. If Fuxing couldn't achieve 50 % improvement, I might cut my stake. How to I get 50%? actually, 50% is conservative. I expect fuxing to do better than q1 since q1 is traditionally the weakest quarter. So let's assume fuxing manage 18 million by itself, and add 5 million due to the 2 wholly owned subsidiary. That will be already an 50% improvement from last year 15 million profits. I expect the newly acquired companies to at least maintain their profits because 1h 2011 is actually a stronger year when you look at the production and export numbers for the sector. As for price, given the poor sentiments surrounding the market now, and the most recent downgrade of us credit rating not digested by the market. I think this stock will fall further first. I try accumulating more at 10.5 cents on Friday but didn't get it. I will most prob try 10 cents over the next few days, but it will be a small quantity. Going forward, it will have the third subsidiary acting to it's bottomline, and I expect Fuxing to value- add these newly acquired companies by passing on cost savings. ( Fuxing purchase it's raw materials in bunk and enjoy economic of scale). Then there will be the pending dual listing, I speculate some of the money will be spent on further acquisitions. Qingdao plant could turnaround too. I however have 1 concern about this company, they wants to develop a new HQ I. Xiamen at a cos of 250 million rmb. I will ask the management if I get the chance on thurs why they think the economic benefits is more than 250 million. I suspect this is reasons why the stock price perform worse than other s- chips in the same sector. Newbiestock, SDz is already in commercial production, but I think it will still be immaterial to bottomline, as it takes time to convince customers used to nylon zippers which is cheaper to make the switch. Come thurs, I will know if my homework pays off or I am horribly wrong about it's profits.
Hey greenrookie, u hit bull's eye with 50% growth forecast. Happy or no?
Fuxing China 2Q2011 net profit rose 52% to RMB22.6 million
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1H2011 net profit boosted to RMB 40.3 million on revenue of RMB 345.9 million
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2Q2011 gross margin improved 10.8 pts to 28.7%
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Maiden contribution from newly acquired dyeing operations with 36.4% gross margin
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Strong cash position of RMB 279.1 million
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Proposed 1H interim dividend of SGD 0. 2 cent per share
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