Bought : China Paper @ 0.325
Finally I can’t resist to bet again….. was so lucky that a few days ago I’m not able to get China Paper the price of 0.375, after a big drop and rebound, I decided to give it a bet again yesterday. Queued at 0.325 and got it.
Today the price didn’t change, but it is 1 bit lower, which means if i queue today, i can even get it at 0.320.
Result is out, should be not bad. According to CNA forumer, the dividend is $22.40 per 1000 shares, pretty good, i think the yield is around 7%. So much better than my Creative. Short term target : 0.370, 0.400, 0.450. How these figure derived? Any how guess one, I don’t really bother to look at the chart or digest the result, since it is just a betting game for this counter.
Anyway, will post the info that i got from CNA forum :
CHINA PAPER POST STRONG FY2005 EARNINGS GROWTH OF 25.2% TO RMB 147.7 MILLION
• China Paper’s turnover rose 8.4% to RMB 686.4 million in FY2005 compared to RMB 633.4 million achieved in FY2004
• The Group achieved an impressive gross profit of RMB 195.1 million, a jump of 23.3% compared to gross profits in FY2004
• Stronger margins are in tandem with positive product mix arising from increase sales of higher margin paper products such as newsprint and printing paper
SINGAPORE, 28 February 2006 – Mainboard listed PRC-based paper
manufacturer China Paper Holdings Limited (“China Paper†or the “Groupâ€) posted strong results for the full year ended 31 December 2005. The Group’s net profit after tax grew 25.2% to RMB 147.7 million on the back of an increase in revenue of 8.4% to RMB 686.4 million for the full year FY2005. The Group’s gross profit for full year FY 2005 also jumped 23.3% compared to the full year performance in FY2004.
The good revenue performance for full year FY 2005 can be attributed to a number of key factors – amongst which are stronger sales in printing paper which stood at RMB 602.3 million or 87.7% of turnover as well as the contributions of newsprint paper which stood at RMB 19.6 million or 2.8% of turnover.
Gross profit rose 23.3% for full year FY2005 compared to the gross profit figure for full year FY2004 . This is predicated on the back of focus on increasing output of printing paper and newsprint paper products which commanded gross margins of 23% and 26% respectively. In FY2005, the Group had phased out the production of writing paper which achieved gross margins of 19% in FY2004. The improved gross profits can also be attributed to economies of scale arising from the increased internal utilisation of wheat pulp thereby reducing the need to acquire external sources of wheat pulp. Wheat pulp made up 40% to 45% of the cost of sales for paper products in FY2005.
