Readers' Top Picks (Part 3)

S-chip doing good recovery: Now at 51 cents compared to 46 previously.

I don't think Sino Grandness will benefit from a shift in demand away from Jap food. The analyst probably is guessing too wildly.






In the foreseeable future, Japan is likely to rely even more on imports. In 2009, it imported around $54bworth of food while exports amounted to only $3b. Neighbouring countries may also switch to non-Japanese sources. In our view, local companies that may benefit from substitution demand include Fraser and Neave (eg, dairy products), Super Group (eg, non-dairy ingredients) and Sino-Grandness Food Industry (eg, canned fruits and vegetables).

F& N, in particular, could benefit as attention shifts to milk producers in Southeast Asia. It has a fully-utilised canned milk plant in Malaysia while its new factory in Thailand is the biggest canned milk plant in the region with a total capacity of 3.5m cans per day. Its dairy plant in Pulau Indah will also give earnings a boost when it comes on-stream late this year. These new dairy plants together boast an annual capacity of 25m cases, compared to its existing capacity of 7m cases pa, and would give it the scale and flexibility to meet the expected increase in demand.

Sino Grandness AGM today at 10 am at Suntec. Anyone going?

Foreland Fabrictech to seek dual primary listing on the Korea Exchange -- announcement this morning. Stock could firm up but yet to be seen if Korean investors have any more appetite for S-chips after Gaoxian got suspended.

Sino Grandness is doing 58.5 cents, an excellent response to the road show in HK yesterday perhaps. If it weren't a S-chip, it would be 78 cents now..... LOL

After its 1Q result, Sino Grandness is proving to be a winner - maybe even a multi bagger.
1Q2011 Group revenue rose 130.9% to RMB177.6m on higher orders across the board
- 1Q2011 beverage sales surged 452.3% to RMB80.4m due to successful sales of 7 types
(including 2 newly launched types)
- 1Q2011 Group gross margin rose 9.8ppt to 34.8% from 24.9% on higher average
selling prices as well as significant contribution from higher margin beverage segment
 

Sino Grandness stock is down 16% in the last 2 months. Value buy now at 49 cents only.
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[Reck 21-04-2011]:

Sino Grandness is doing 58.5 cents, an excellent response to the road show in HK yesterday perhaps. If it weren't a S-chip, it would be 78 cents now..... LOL