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Value Stock In A World Hungry for Cheaper Food
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akchua
Senior |
22-Feb-2013 14:41
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I know a lot of people still holding 30cents China Farm. |
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Octavia
Elite |
22-Feb-2013 14:35
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China Farm Equipment Limited will be delisted from the Official List of the SGX-ST with effect from 9.00 a.m. on 25 February 2013... http://www.btinvest.com.sg/markets/news/58088.html?source=si_news |
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enghou
Senior |
09-Feb-2011 16:40
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DMG recommends BUY with Target price at 43 cents Established in 2006, China Farm Equipment (CFE) is one of the largest farm equipment makers in Hunan and has increased its market share progressively to est.10% in China‟ s new combine harvester sales in 2010. CFE distributes its products under “Dragon Boat” and “Binhu”, two previous state-owned brands with > 30 years of history each. Share price was flattish since late- 09 due to disappointing results from 1) discontinuation of its truck business in 2008 and 2) lower orders affected by floods in southern China in 1H10, which overshadowed its core business potential. We believe CFE will continue to benefit from PRC‟ s favourable equipment subsidy policy, and recent industry consolidation that saw a doubling of its market share. Share price could soon re-rate on 40%-38% FY11F-FY12F earnings growth to RMB48m-RMB66m (FY10F: RMB34m) respectively, driven by expected increase in harvester demand. We initiate coverage on CFE with a BUY at TP of S$0.43, with ~70% upside potential. More state subsidy to increase agricultural output. To support a projected 1.4b population and 52% urbanisation rate by 2015, the China government has targeted higher overall mechanised rates, in particular 70% (2010: 58%) for rice farming. Agriculture subsidy grew at 44% CAGR to reach RMB135b in 2010 (2006: RMB31b), of which equipment subsidy had surged from RMB1b to RMB16b in order to encourage wider adoption of machines by farmers. Expect strong 40%-38% FY11-FY12 earnings growth. Annual sales of CFE‟ s farm equipment increased from 4,600 to 6,000+ units during the period. To meet its goals, we assume China will need ~140,000 new harvesters a year (FY10: 68,000), and CFE will deliver 8,000-11,250 units of equipment in FY11-FY12, providing support for our projected 40%-38% net profit growth respectively. Key risks. Key risks to our recommendation include lower-than-anticipated demand due to natural disasters and delays in state subsidy disbursement, and greater-than-expected margin pressure and working capital requirements from surging raw material prices e.g. steel. Life Is Great |
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yunglee
Member |
05-Jun-2008 21:09
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ya... the next support is at 0.42.. | ||
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hotstock
Veteran |
05-Jun-2008 17:11
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I think it is better to stay away. Chart does not look good. | ||
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178investors
Veteran |
05-Jun-2008 15:33
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 ... view market prices as the settled transactions of buyers and sellers. That's all they are. They represent opinions of value at one point in time. They are simply prices to be taken advantage of or ignored...
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yunglee
Member |
05-Jun-2008 15:03
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anyone looking at this?it keep dropping | ||
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178investors
Veteran |
22-May-2008 23:58
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DMG has a price target of $0.94 for China Farm Equipment. Based on today's closing price of $0.56, another likely 60% upside according to DMG. Since my first recommendation to buy China Farm, at that time the price was about $0.35. Those bought and hold would have made 60% return by now, not including the divvy to be paid yet. China Farm Equipment is a good bet in a world running low on food grains.It is sitting in a sweet spot right now , impervious to inflation. In basketball parlance, it's a slam-dunk! More kopi money for all vested. |
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178investors
Veteran |
08-Apr-2008 13:16
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... china farm appreciated about 20% since my last posting... at current price $0.45 still cheap relative to its forecasted earnings this year and evern CHEAPER relative to next year earnings. Great bargains for value investors... buy now... don't miss the boat. | ||
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178investors
Veteran |
31-Mar-2008 16:33
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To feed more people in times like this, the farmers need to improve productivities per hectare of land. Farmers in China and those in Thailand, India, Vietnam, Cambodia and Laos use manual labours which are of low productivity. That's why not enough crops outputs mean some countries try to stop crops exports to provide for their own food security. This is what's happening to the sudden rise in rice crops this year. China Farm Equipment (CFE) manufactures a range of trucks, prowlers, harvestors and diesel engines at low cost to help asian farmers improve their productivities. They are penetrating new markets like those mentioned above besides going into new provinces across China. CFE operating profit margin is holding up well last year and should hold up in 2008. With China Govt encouraging and subsidizing farmers to procure new capital equipments, CFE should do well in the many years to come. Value stock tend to be forgotten when people are chasing the next growth story. At current price level, can consider accumulating and collecting future dividends. Value stock need patience to grow. So you decide if it's suitable based on your invt. objectives. Cheeers... |
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tanglinboy
Elite |
29-Mar-2008 13:53
Yells: "hello!" |
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Yah... food based counters should do well. Price of food is increasing. Poor people in Singapore will suffer....
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178investors
Veteran |
28-Mar-2008 15:10
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For long term value investors, China Farm Equipment is par for your portfolios... it is recommended a good "Buy" by analysts. It is relatively quiet these few weeks though but may suddenly change mood with its small outstanding free float. |
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