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.