| Latest Forum Topics / China Sun |
 Post Reply
|
|
China Sun Bio-Chem
|
|
|
Pinnacle
Master |
15-Nov-2007 13:59
|
|
x 0
x 0 Alert Admin |
DBS Vickers - Keeping its chin up above rising corn prices Buy S$3.48; Price Target : S$ 3.78 Topline was up 16% due to an increase in sales volumes for corn starch (+37%) and by-products (+35%) coupled with increases in average selling prices for its products in reaction to increasing corn prices. Corn which constitutes 60% of its cost of goods has seen prices surge by 20% y-o-y. Gross margins therefore dipped by 3.2ppt to 28.2%. Consequently gross profit increased slightly by 4% to RMB124m for 3Q07. SGA expenses remained relatively stable and in line with increases in additional capacity. In 3Q07, SGA continue to constitute a mere 5% of sales. Net profit was up 11.5% in spite of non-cash amortization costs of RMB7.8m for its USD100m convertible bonds. Excluding this accounting loss, adjusted net profit would have increased 7% to RMB83.9m |
| Useful To Me Not Useful To Me | |