Wednesday, December 16, 2009 at 9:00AM Key points:
-MSG price surged from RMB7,719/tonne in Sep to RMB10,200 in Nov.
-Industry-wide gross margin reached 35.0%+.
-No major capacity expansion at this stage.
-Earnings revised up to reflect high MSG price.
-Target price changed from HK$4.86 to HK$5.98.
Wednesday, November 4, 2009 at 9:47AM
Key points:
- 250,000 tonne corn procurement from government approved
with potential gain of RMB57.5m in 4Q.
- Surphuric acid, ammonia and coal cost dropped in 3Q.
- MSG price driven by corn price.
- Earnings estimates penciled up 22.1% for FY12/09F.
- New target at HK$4.86.
- Fair value at HK$5.74 under new market-equilibrium scenario.
Wednesday, August 19, 2009 at 9:37AM Key points:
Ø 1H results broadly in line.
Ø Margin widened on lower raw materials costs.
Ø Cut price to expand xanthan gum market share in 2H.
Ø More capacity expansion in plan.
Ø Potential procure of corn from government to bring down cost.
Ø Forecasts penciled up.
Ø Target unchanged at HK$4.51.
Wednesday, July 22, 2009 at 9:25AM
Key points:
- Technical upgrade to reduce coal procurement cost by 30-50%.
- Gross margin anticipated to widen 7pcp to 25.0% in FY12/09F.
- Higher long-term market share based on strengthening cost advantage.
- New round of capacity expansion industry-wide is likely.More aggressive xanthan gum pricing in 2H to obtain market share.
- New target at HK$4.51.