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Synthetic leather specialist
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AT01167
Senior |
07-Nov-2007 23:27
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They are going to announcing 3Q2007 FINANCIAL RESULTS Hope it is a very good news :) |
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ROI25per
Master |
18-Oct-2007 19:21
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for me, i prefer the other 3 http://www.remisiers.org/research//mb%2018%20Oct.pdf In a Sweet Spot for re-rating Analysts: Rohan Suppiah rohan@kimeng.com (65) 6432 1455 Pauline LEE paulinelee@kimeng.com (65) 6432 1453 ♦ Ratings yet to reflect outstanding growth prospects Our recent review of our universe of Chinese synthetic fibre manufacturers indicates that these Singapore-listed counters still provide significant upside from their current trading prices. Besides executing effectively on their respective business plans and realizing their growth potential from a burgeoning Chinese textile market, we believe that these companies have room for their stock prices to rise further, as Singapore listed China companies undergo a re-rating to trade more in-line with their Chinese and Hong Kong traded counterparts. Liquidity driven appreciation from qualified domestic individual investor (QDII) funds aside, these companies? current valuations still do not reflect their outstanding growth prospects, in our opinion. ♦ China Sky ? In the midst of M&As (Buy, TP S$3.60) CSCF?s share price has a good run in FY07, up 99% YTD and 47% in the third quarter and has surpassed our target price of S$2.40. Being one of the biggest chemical fiber companies listed on the Singapore bourse, and largest manufacturer of high-end quality nylon yarns in PRC (annual capacity of 88,000 tonnes) with energizing growth drivers, we believe CSCF will continue to enjoy strong interests and justifies a higher PER multiple, closer to the overseas comparables. Our target price is raised to S$3.60, pegged to a higher PER multiple of 18x FY08 PER. ♦ Fibrechem ? maintaining its growth trajectory (Buy, TP S$2.40). Despite growing by 81% per annum over the past two years, Fibrechem looks to continue its growth momentum with a further 68% earnings growth this year, driven by its production of microfibre leather. This product base will continue to drive earnings over the next few years, as Fibrechem looks to expand its customer base into other segments such as fashion and automotive applications. Meanwhile, its traditional long fibre business still provides a steady earnings baseload. We peg fair value of Fibrechem at a reasonable multiple of 18x FY08 earnings, or a fair value of S$2.40 per share. ♦ Attractive valuation ? C&G Industrial (Buy, TP S$1.00) C&G is currently trading at 8x FY07 PER, an attractive 31% discount its comparables. We believe the valuation gap to narrow considering C&G?s new product launches, capacity expansion and gross margin enhancement over the next two years. The additions of new products will boost C&G?s annual production capacity to 75,155 tonnes by FY09, close to that of large PRC manufacturers such as China Sky and Fibre Chem. Besides, with the PSF coming on stream by 4Q07, C&G will the only firm in PRC with a full vertically integrated supply chain to produce customised PET chips, PSF and yarns at one stop. Our target price (TP) is revised upwards from S$0.95 to 1.00, pegged to 12x FY08 PER, cross-referenced with our 5-year DCF model. |
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Gallen
Senior |
18-Oct-2007 18:36
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Hi all, after ASL Marine, I am back with another undervalued gem - Sinotechfibre Rationale: 1. Valuations are at a significant discount to China Sky and Fibrechem (forward 2008 p/e). At current price of $1.24, Sinotechfibre trades at a very undemanding FY08 P/E of around 8.5x compared to around 12x FY08 P/E for China Sky and Fibrechem (based on closing prices of $2.45 and $1.77 respectively). 2. Market cap for Sinotechfibre is close to that of Fibrechem, its closest comparable in the synthetic leather industry, so there is no basis for such a wide valuation gap. 3. Stable customer demand - from People's Liberation Army and strong substitution demand for synthetic leather and microfibre given steep leather prices. 4. New product PMP delayed for only 1 month, this news has already been out for some time and factored into current prices. Management appears confident of demand for PMP which will help to boost margins in FY08. Pegging Sinotechfibre to 12x FY08 P/E (which is also its historical P/E trading range) implies a fair value of $1.75. Main Risk: Record oil prices may erode margins if Sinotechfibre is unable to pass on increases in raw materials' cost. Technicals: Sinotechfibre appears oversold with short-term supports between $1.19 to $1.23. A break of this support zone will see prices likely heading towards the next key support at $1.10. |
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ksatyam_2000
Member |
18-Oct-2007 10:38
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is it a good idea to sell sino techfibre now at 1.3 to cut loss? |
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lucky168
Veteran |
07-Oct-2007 23:18
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sinotechfib, fibrechem, chinasky, c&g...just a few good stocks in the common industry |
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boonhow65
Member |
01-Oct-2007 12:07
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Testing 1.6 now. Ivorycoast, alvinwong1012.. we are all happy men.. haha |
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alvinwong1012
Member |
28-Sep-2007 13:41
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Agreed Mate. This counter has been lagging despite strong business fundamental. Just look at the deal they secured for China National serviceman......Should make some upward movement following the surge in China stock today...Still far away from the potential TP of 2.12 as listed by one of the broking house in July 07. Vested Interest from 1.33 - 1.35 range..Cheers! |
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boonhow65
Member |
28-Sep-2007 12:36
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I just bought some at 1.36 Chart looks promising. Can always cut loss at 1.34 Not an inducement to buy or sell. Just own opinion. |
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ivorycoast
Elite |
28-Sep-2007 12:25
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Only 1st day of break out of the $1.34 ? Should travel upwards another few sessions ? |
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ivorycoast
Elite |
28-Sep-2007 12:14
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YES !!! Break out of the $1.34 liao ..... Towards $1.40 now ..... Hope shortists not fooling around ...... |
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ivorycoast
Elite |
28-Sep-2007 12:09
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If it test the $1.40 later ..... all hell gonna break lose ..... Don't block the way of this SUPER BULL ..... Bull-dozing it's way already ..... |
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ivorycoast
Elite |
28-Sep-2007 12:03
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It's time for this to be the next Yangzijiang, technically ...... Hope the $2 will come soon in the next few sessions ..... |
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ivorycoast
Elite |
28-Sep-2007 11:57
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A potential $2 stock ..... Seems that BBs are back into this now ..... |
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ivorycoast
Elite |
28-Sep-2007 11:52
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If FibreChem can move 13 cts today ..... think SinTechfib is today's supper laggard ..... |
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ivorycoast
Elite |
28-Sep-2007 11:49
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Warren Buffet kind of business ? No frills ..... no tech jargons ..... just plain basic business model ..... |
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ivorycoast
Elite |
28-Sep-2007 11:46
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If another long white candle appears soon ...... this could be the most powerful rocket launch ..... |
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ivorycoast
Elite |
28-Sep-2007 11:40
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Powerful breakout ..... Now heading towards its previous high ? |
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ivorycoast
Elite |
28-Sep-2007 11:37
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Wow ! Target Price $2.12 ..... ? Still lots of meat ..... |
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alvinwong1012
Member |
24-Jul-2007 22:39
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Seem to slight laggard despite the surge in major Chinese companies. Should worth a look based on the contract that was secured for Chinese Army uniform..With Olpymic 08 near the corner...there will be a greater demand...Cheers! Sino Techfibre (BUY S$1.46/TP S$2.12) Direct Beneficiary from the Biggest New Uniform Change for Chinese Servicemen China?s armed forces will dress up all servicemen in new uniforms within three years and the PLA garrison troops in the Hong Kong Special Administrative Region put on new uniforms on July 1, the 10th anniversary of Hong Kong's return to China. Although there have been 12 times uniform change on the PLA?s history, this time is regarded as the biggest one according to the scale as it includes all sets of uniforms (4 sets with parts types in all). This is also a gift to the 80th anniversary of the foundation of the PLA. The total money spent will be over Rmb6b over the next three years. All the orders will be picked up by civilian companies. Sino Techfibre has been the solo producer for the (inner and outer) belt worth over Rmb100m for the new uniforms and it has already begun to supply to PLA at the beginning of 07. Gross margin for the belt is above 60%. Due to the large orders from PLA, its percentage sales to PLA are expected to rise to 15% in 2007, up 4% from 2006 level. Sino Techfibre is also the supplier for cap, glove, suede cloth and shoe to PLA, and it will make the criteria for servicemen?s cap which will help it to grasp most of the cap orders in the future. Total servicemen in China is around 3.5m at the end of 2006 (exclude the arm reserve force) and overall new uniform will be around 14m sets (4 sets per person). We think this will benefit those suppliers in the long run as even after three years the PLA still need pile up inventory of new uniforms for the new recruits. We are very positive on Sino Techfibre. Apart from the inspiring PLA orders, its soon-delivery Pattern Moulding Paper (PMP) this Nov will bring the stock to a new high. We maintain BUY with target price at S$2.12. Best regards |
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alvinwong1012
Member |
16-Jul-2007 12:50
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Thanks Max... Agreed with you..This company seem to have great prospect after securing the contract for entire chinese armed forces. Wth Olypmic drawing round the corner, there will be in greater demand for security purposes..Have vested interest..Poentially another 20% upside based on recommended TP of 2.12 , existing price is 1.71... CheerS! |
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