Foreland Fabrictech

[dydx]

In the positive profit alert announcement, Foreland has said that for 3Q 2011, the Group is expected to report a significantly higher revenue and PBT than 3Q 2010 (Revenue: RMB96.2m; PBT: RMB18.5m).

I will be totally impressed if the Group in 3Q 2011 posts a revenue and PBT even higher than the record achieved in 2Q 2011 (Revenue: RMB203.3m; PBT: RMB53.1m). We shall know by 14Nov11.

[weijian]

might be better to analyse the company from the pt of view of a sceptic, rather than getting swept head over heels with all the advertised positive stuff...

[dydx]

I will be totally impressed if the Group in 3Q 2011 posts a revenue and PBT even higher than the record achieved in 2Q 2011 (Revenue: RMB203.3m; PBT: RMB53.1m). We shall know by 14Nov11.

3Q results just out.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [result announcement + press release]

With 3Q's Rev. at RMB207.5m and PBT at RMB54.5m, and a rock-solid B/S as at 30Sep11, what else can I say?

3Q is the 3rd consecutive quarter of solid revenue and profit performance. With such solid profit numbers, when shouldn't Mr Market be prepared to price Foreland at least at its NAV/share of RMB1.22 - equivalent to approx. $0.244?

[dzwm87]

wow, they doubled cash as well.. in an even stronger net cash cash position.

too good to be true?

[dzwm87]

The market today totally doesn't care a bit about foreland's outstanding 3Q result.

[dydx]

The market today totally doesn't care a bit about foreland's outstanding 3Q result.

Not entirely true, I think. A total of 801 lots were transacted today (15Nov11), which is the highest since 31Oct11. Based on the transaction record, there was quite a bit of 'buying up' - i.e. buyers taking from the sellers on the queue - starting from 1201hr all the way till 1434hr, at which point Foreland was traded up to the day's high at $0.106. Then at between 1508/9hr, there was a 'force-sell' trade of a total 212 lots given to buyers on the queue, which brought the price back down - in one quick stroke - to $0.096. Following this sudden downward price movement, new buyers soon came in to queue at slightly higher prices, and apparently moved by the price movement, some loose-footed holders later sold a total of another 102 lots to buyers on queue, but at increasing prices from $0.10 to the closing price of $0.102 done at 1643hr.

[dydx]

I am pleased to note that Foreland has exhibited a steady price rise from $0.098 since 18Jan12. Today (7Feb12), the ascent actually accelerated with even stronger buying, and Foreland has so far risen by $0.007 or 6.1%, and last done at $0.121. It certainly looks like quite many investors are betting on a set of good FY11 full-year results and higher dividends coming by 29Feb12.

[dydx]

Following yesterday's (14Feb12) "Positive Profit Alert" announcement.....
http://info.sgx.com/webcoranncatth.nsf/V...400360E07/$file/Foreland_Positiveprofitalert.pdf?openelement
Foreland's share price climbed another $0.006 today to close at $0.13, with a total volume done of close to 14.3m shares.

From the announcement, it appears that Foreland as an expert producer of its own brand of high-quality, high-end functional fabrics is doing exceptionally well. The same, however, cannot be said for China Fibretech, another listed PRC-based provider of fabric processing services, which has just issued a negative "Profit Guidance" announcement today....
http://info.sgx.com/webcoranncatth.nsf/V...50032CB5F/$file/ChinaFibretech_Profit_Guidance_4QFY2011_150212.pdf?openelement

[sgmystique]

Foreland Fabrictech FY11 Net Profit Soars 210% To RMB140.6m From RMB45.4m

- Revenue surged 117% year-on-year to RMB756.5 million in FY11, primarily due to improvement in average selling price and increase in sales of higher grade products with better profit margin
- Average selling price of fabrics rose to RMB13.61 per yard in FY11 from RMB10.57 per yard in FY10 due to improvement in product grades
- EPS in FY11 surged to 28.65 RMB cents from 10.00 RMB cents in FY10
- Proposing final dividend payout of 1.5 RMB cents per share

Well except for the dividend payout for the year (RMB 0.027+RMB 0.015) the results look as good as possible. Is it a case of the books being cooked once again for a Chinese firm or has the market really got it wrong this time round (The stock closed at S$0.109 today)...

I guess only time will tell...

[yeokiwi]

The 45 miilion share placement raised RMB $29 million.
RMB6.5 million was paid as dividend.
Now, with the newly declared dividend of 1.5 RMB cents, Foreland has to forked out another RMB $7.93 million.

So, technically, the dividend came totally from the share placement.