Qingmei

There is a listed company in China A share market, named Taiya Gufen(泰亚股份）.
Anyone pay any attention on this company? I think it's the biggest competitor of Qingmei.
I noticed that, the average selling prices of Taiya are RMB11.6 for MD I soles and RMB16 for MD II soles in June 2010.
But the ASP of Qingmei is much higher than Taiya at that time: about RMB28 for MD I and RMB30 for MD II.
I checked some prices of MD shoe soles on internet, didn't see any shoe soles sold at around RMB30.
I am worring about the authenticity of Qingmei's ASP.
 

Anyone went to AGM yesterday? What vibes did you pick up there? Anything interesting to share? The stock is stuck at 18.2 cents still even when a big dividend is coming.

sgmystique posted this at valuebuddies.com:


Had been to the AGM held today at the Raffles City Convention Centre. It seems that CEO Mr. Su Qingyuan is not very comfortable speaking in English and so the floor was held by Mr. Tan Siok Sing (Lead Independent Director).

Had three queries for management. Am providing the same along with management responses:

1. Expected dividend payment for year ended 30 June 2011.
Reply: There is no fixed policy regarding dividends and management would not like to make any advance pronouncements on the same.

2. Why did the major shareholder sell a 3.6% stake at just S$0.1685 (PE of less than 2 times).
Reply: This is a personal decision of the major stakeholder and the board does not have any say in the same.

3. Financial outlook for FY ending Jun 2012 considering the present economic climate in China.
Reply: The business environment in China right now is quiet on the defensive. Qingmei has put on hold its plans to increase capacity to 84 million soles. They will continue with current capacity of 65 million soles and will purchase equipment for an increase to 84 million soles once capacity utilization is more than 90%. Currently capacity utilization is around 80%. However the good point is that is that it takes a very short lead time (a couple of months) to get the equipment up and running once management feels that the need has crystallized.

Question from one of the attendees at the AGM:

1. Why are gross margins for Qingmei much higher than their competitors.

Qingmei is an ODM (Original Design Manufacturer) as compared to an OEM (Original Equipment Manufacturer). This gives them a much stronger and a more value added relationship with their customers along with a better gross margin.

Most importantly from my one-to-one with Mr. Tan Siok Sing was the assurance that the Audit Committee (AC) has taken all pains to make sure that Qingmei does not turn out to be a fraud case like numerous other S-Chips. I had a similar assurance from Mr. Pek Yew Chai (Independent Director & Audit Committee member), who is a former CEO of Singapore Computer Systems (SCS). These clarifications offer a certain degree of assurance to minority shareholders like myself that we are not being taken for a ride.

I would really appreciate if any other members who had been to the AGM can pen down their thoughts as well.

Qingmei, once a darling of investors, a resilent wall in tumoil has been given the cold shoulder even since chairman sold a 3.6% stake. If fell from the pre sale price of 18 cents to 12.5 cents today, a hefty 30% fall.
Granted, QIngmei faces a number of issues, like all s-chips, escalating costs, tighthening credit, etc, by QIngmei is one of the most heavily punished s-chip. even Hu an who has fumble on its 2nd TDR suffer only an 22% fall.
I believes it not justifiable and it might be one of the S-chips to rebounded strongly.
Assume Qingmei margin become 28% (The worst in 2 years), utlisation fall to 65%, Tax rebate expire next quarter, profits fall around 30% to around 57 million for the next 3 quarters, and there is a dilution of 10% as everyone opt for scrip dividends instead of cash. What kind of valuation will qingmei have??
QIngmei will still have an EPS of 6.3 SGD cents, going forward, which mean a PE of about 1.9.
Too early to call, with just Q1 results, but I believe QIngmei will  not be as badly affected by Euro crsis as compared to Fuxing as it caters mostly to domestic customers. The consumer industry will not be as badly affected by the credit tightening as compare to some industry, so i believe my projection is very conservative.
I will continue to queue for qingmei at 12.5 cents

i agree. time to accumulate as much as possible.

jameskuwe & greenrookie: Looks like you were spot on! This cursed stock has jumped 33 % from 11.1 to 14.7 (today)