Tianjin TEDA (8189 HK) A fertilizer play diversifying into healthcare products

to summarize…

-  Tianjin TEDA engages in the development and sales of biological compound fertilizer products, medical and health products.

-  Last reported earnings was for nine month ended FY09/11A. Revenue increased 29.9% YoY to RMB425.0m. Gross profit increased 39.9% YoY to RMB78.6m. Profit for the period increased 3.8x YoY to RMB11.7m. Gross profit margin increased 1.3pcp YoY to 18.5%. Net profit margin increased 0.8pcp

YoY to 1.8%. 

-  The sales of fertilizer products amounted to RMB347.8m accounted for 81.8% of total sales, a decrease from 82.2%. The health products business amounted to RMB77.2m accounted for 18.2 % of the sales, an increased from 17.8%. -  On June 17th 2011, the group announced that they have entered into an acquisition agreement to acquire the 25% equity interest in Tianjin Alpha Healthcare Product for a cash consideration of RMB4.6m (~HK$5.54m).

-  The counter is currently trading at 71.1x current year fwd P/E on consensus. The Hong Kong listed fertilizer producers are currently trading at average 19.5x FY12/11F P/E and 13.7x FY12/12F P/E based on market consensus.

Tianjin TEDA (8189 HK) A fertilizer play diversifying into healthcare products