China Flexpack   

1Q FY06 Results are out!!!

Nobody cares nowadays whether you are listed or not at the most prestigeous stock exchanges or not.  Even good counters on the NYSE or NASDAQ or what have you, are being slaughtered like pigs in the abaitoirs.

ChinaFlex is no exception. It is going for half its value.  Honestlly if the company can liquidate all assets, or have sufficient cash to buy back all the shares, or go to the extent to give cash back to shareholders, you will probably be richer by 2 times your present holdings.

 

China FlexP has been selected as one of the component stocks in the FTSE Straits Times China Index ("STCI"). The STCI will comprises 50 China companies having a total market capitalisation of approximately $21 billion (data as at 31 Aug '07). Stocks selected for entry into the STCI are based mainly on (i) individual market capitalization; and (ii) its free float- which must be more than 15%. In addition, as a liquidity consideration, the selected stock for STCI must trade with median daily turnover value of at least 0.05% of the value of its free float- adjusted shares in issue for at least 10 out of the past 12 months.

 

Flying today!!!

cheong ah!!!!!

 

Can some kind soul do a TA to enlighten everyone on this stock please?

Would really appreciate to verify my gungho expectation for this stock. Thank you.

 

It was listed at 75c in Feb 04, and is currently at a discount of 35% to its' IPO price. There is much upside to this stock, and I'll not be surprised it can hit its' high again this year, given its' healthy earning and strong reserve.

 

hope that tmrw will be a better day

 

Looking at its financial ratios, it really looks like a undervalued co. With the sliding of oil price, looks like this counter will have more upside. My humble fair value for this counter is around 0.62 cts. 

 

the market seems to be selling on strength. not good news for this baby for now.

 

Compared to other PRC stocks, this is a truely undervalued, laggard stock which should be re-valued by analyst shortly. Mark my words!

Don't you agree that the almost RMB 989.3 million turnover with a profit of RMB 316.7 million impressive?

Very bullish on this stock, and am confident it will be star of the year 2007!

Many happy returns to all investors of this counter.

 

yeah. and i am not proud of that.

hahaha

 

hey, giantlow u are here as well... you are vested in this counter too? My gf bought it at 0.70 2.5 years ago, luckily only 2 lots.

 

weak??? todays market is terrible. i am down 16K on paper leow.

 

Hi giantlow, its sell on results, furthermore todays market is weak.

 

Its dropping & dropping leh.

 

Don't miss the boat my friends!

It broke the resistance at 48.5c, and then 50.5c. My prognosis is that it should hit 57c today.  Looking at the very sudden buying will fret you out.

Still waiting for the ST to report on the sterling result.

Target price:  65c

 

Penny stock with generally low volumes... but it is on uptrend with large volumes. Very bullish.

 

Though the overall market sentiment is down, this stock managed to gain a few percentage points.

It has been inching upwards since last week, before the announcement of the FY06 results. Their turnover and profit were respectable. This stock is comparable to Longcheer, which ran upwards last year, and will continue to do so.

If the FY06 results were to be published in the Straits Times tomorrow, then hitting 59c would not be a problem.

Those who read my post would have reap handsomely for to celebrate the coming Lunar New Year 2007.

 

Since my last post, the price has gone up by almost 8%. Think it should close at about 48.5 cent today, and will hit 50 cents tomorrow.

Based on management guidance,  FY07 should be much better due to :
1. Full year contribution from higher margin BOPP in FY07. In FY06, BOPP only impact 2 quarters.

2. Higher margin metallised BOPP to contribute only in FY07.

3. Expansion of distribution channels in Q4 FY06 would have fuller impact in FY07.

4. Time-lagged effect from peaking oil prices would be fully felt in Q1FY07 & Q2FY07. Oil prices avg out around USD68 in 2006 (USD54 to USD78 in 2006). Oil prices should be capped around USD62 to USD64 in 2007 with a downside support at USD51 to USD53.

 

China Flexible earnings for FY06 jump 34%
Company cites rise in sales of higher margin products

Business Times - 30 Dec 2006

By JEAN CHUA

CHINA Flexible Packaging Holdings said net profit for its 2006 financial year rose 34.1 per cent as it sold more higher-margin products.

The maker of packaging material said net profit for the year ended Oct 31 came in at 173.7 million yuan compared with 129.5 million yuan a year ago. The increase was due to a jump in overall gross profit but part of it was offset by higher selling and distribution costs.

Revenue for the year increased 19.1 per cent to 989.3 million yuan from 830.8 million yuan.

'During the year under review, we increased the sales of our higher-margin products such as synthetic paper and the newly-launched five-layer high barrier film (5-layer BOPP film),' said chairman and executive director Chong Yuen.

'This has enabled us to partially mitigate the high raw material costs during the year.'

China Flexible had adopted the new International Financial Reporting Standards during the year, and had to restate last year's income statement.

Its FY05 profit was reduced by an inclusion of a once-off employee share-based payment amounting to 36.6 million yuan, it said.

If this item was excluded, the net profit for the quarter ended Oct 31 would have increased by 45.5 per cent from 27 million yuan to 39.3 million yuan. Group revenue for 4QFY06 rose 38.5 per cent to 264.5 million yuan.

'With the full-year contribution of our five-layer BOPP film and launch of our new metallised BOPP film in the new financial year, we are optimistic that the increased contribution of these higher value products will have a positive impact on our financial performance,' Mr Chong said.

For FY06, China Flexible has declared a final dividend of 10 renminbi cents per share, which translated to a net dividend rate of 8.5 per cent per ordinary share.

 

Extracted from my blog http://kelongstocks.blogspot.com Please visit my blog for full details. Technical Analysis Support: $0.435/$0.445 (previous support turned resistance turned support, $0.435 also coincides with upward sloping support line), $0.390/$0.400 (recent low in late Oct 2005, and support zone during mid Nov 2005 to Dec 2005). Resistances: $0.475 (recent support on 23 Jan 2006 and 20/21 Feb 2006), $0.495/0.50 (EMA 50 and EMA 100), $0.52 (recent resistance in mid Jan 2006 and early Mar 2006). Indicators: Bearish, RSI heading downwards towards oversold zone, MACD in negative territory and heading downwards, Stochastics in oversold zone, looking to cut up. Stock likely to rebound towards 47.5 cents resistance on positive guidance given by company. Clearing resistance of 47.5 cents should see stock heading towards 50 cents. However, current weak sentiment on China stocks likely to cap any gains. Prefer to accumulate near supports. Stop loss should be pegged at 43.0 cents.