China Renji (648 HK, HK$0.051) - First take FY12/08A results

Updated on Tuesday, April 14, 2009 at 5:38PM by VAYUE.com Team

China Renji (648 HK) announced FY12/08A results. Turnover was up 255.2% YoY to HK$207.6m, gross profit increased 562.6% YoY to HK$163.0m. In terms of continuing operations, Renji swung to a profit of HK$52.1m from a loss HK$76.9m a year ago. The company also booked a impairment charge of HK$40.4m for the year, the result of the annual impairment test of its intangible assets, from the original acquisition of Anping Renji in Jul 2007.

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United Laboratories (3933 HK): Finished products strength emerging - BUY (unchanged)

SBI E2-Capital has issued an updated research report to detail ULI's FY12/08A results. Key investment themes are that FY12/08A net profit of HK$430.2m was in line with our expectations but down on market consensus which was dragged up by several over aggressive street estimates. Weakness over the next couple of trading sessions may potentially present good entry points for investors. We maintain our BUY call on the counter, lifting our SOTP target price to HK$3.40, representing 8.1x blended FY12/09F P/E

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United Laboratories (3933 HK, HK$2.70) – First take 08 results, stock price weakness brings accumulation opportunities

As expected (see “Time to take profits”), United Laboratories (ULI)'s FY12/08A net profit of HK$430.2m (down 15.7% YoY) was is in line with our expectation but lower than the market consensus. Turnover rose 44.7% YoY to HK$3,755.9m though gross margin fell 8.4pcp to 38.1% as 6-APA and amoxicillin bulk medicine prices normalized in FY12/08A. Turnover increase was broad based. On a segmental basis, finished products up 34.6% YoY, intermediate products was up 23.6% YoY and bulk medicine up 25.6% YoY. We like the fact that EBIT margins improved for both finished products (up 2.5pcp YoY to 26.8%) and bulk medicines (up 0.8pcp to 11.4%). As we have mentioned previously, the market had too high of an expectation for ULI’s FY12/08A net profit. We think that the pressure on the stock over the next couple of trading days may present good accumulation opportunities for investors.

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United Labs (3933 HK, HK$2.90) - Time to take profits

Updated on Monday, April 6, 2009 at 3:51PM by VAYUE.com Team

ULI (3933 HK) will announce results on 7 Apr (Tue). We are looking for a net profit of HK$454.2m. We think that market consensus of HK$544.2m is on the high side. The is fairly valued in our view from a trading perspective in light of current market conditions. We suggest investors to lock in profits now.

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Sino Biopharma (1177 HK, HK$1.23, HOLD) - Fundamental is still solid but lack near-term catalysts

Updated on Thursday, April 2, 2009 at 8:37AM by VAYUE.com Team

For 4Q FY12/08A, the revenue of Sino Biopharmaceutical (SB)'s revenue beat our expecations with revenue growth of 98.5% YoY to HK$645.2m and net profit up 27.5% YoY to HK$96.8m. We think the company's fundamental and drug pipeline is more solid than other cash-rich peers such as Shineway (2877 HK) and Wuyi (1889 HK). However, it seems that the stock has limited liquidity and lack near-term catalysts. We are currently reviewing our earnings model.

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