Posted on March 2, 2008 - by Derek Lim

Stock Analysis

Updated 2 March 2008

Drizzt did an analysis on another four company’s’ financial results – Sarin, Telechoice, Nutrifoods and Celestial Hong Wei.

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28 February 2008
A slew of financial results were released during the past month and my fellow authors have been busy analyzing on the stocks that they have owned. I believe many people would also like to hear what the average investor has to say about their stock on top of reading analysts’ reports. Hence I will compile them and put it in an accessible to read format when I upgrade my blog template.

Below is a short summary categorized by the author’s name.

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By: Alen
Synear – Expensive pork expensive lesson
After Synear announced the FY07 result, market has rewarded it with big sell down and many broker downgrade. Key reason is the result below expectation. We have to admit that buying stock is based on rule of expectation. When company outperform the expectation, share price increases. Otherwise, it is the other way. Imagine that I bought a few lot at well above 2+, you should know what expensive lesson means. Read more…

China lady shoe maker – Hongguo FY07 result
The dividend payment is increased from 0.73 cents to 0.97 cents. The most comforting fact of Hongguo is it has achieved another year of 20% increase of profit. As long as you didn’t buy expensive. This is a stock worth to keep. Assume they are able to increase the EPS to 0.336 next year. At the current price of 0.635, it is selling at next year PE of 9.4. BUY! Read more…

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By: Drizzt
Sarin Technologies: Glittering results but unglittering share price
Sarin’s share price performance have been pretty dire in this volatile market. Nothing seems to be able to bring it up. Part of the reason i feel before seeing this full year result is attributed to:

• Poor sales due to falling demand from United States, India and China.
• Supply concerns in India
• Falling USD which they are priced and paid at. Read more…

Telechoice 2007 Full Year Results: Does Dividend Yield Compensate Risks?
From the report, the group expects its investment in TeleFortune (China) to begin contributing to the Group from the second quarter of FY 2008.
I find no other portion of this section to be good information except this phrase: cautiously positive of the outlook. Read more…

Celestial Nutrifoods Full Year Results: Cost Concerns
Balance sheet strength indicates the sustainability of future operations, and Celestial have a very strong balance sheet.

• interest bearing debt is 37% of assets
• cash is 47% of assets
• cash is 76% of market cap at SGD 61.5 cents
• inventories are growing inline with sales growth
• so are receivables Read more…

Celestial Hong Wei Technologies Full Year results: Not bad
The results release shows a well run company on the surface. However, i do have one gripe: A cash flow of RMB 62mil should easily pay for a 39 mil capital spending and a 14 mil dividend. Are the company doing a right thing by placing out 57mil worth of new shares? Read more…

Courage Marine Full Year Results: Leverage on a commodity boom?
The year have been a good one for shipping companies as well as for ship builders. For Taiwan based Courage Marine group, it is no exception.

• Profits improved 117%, buoyed by record rates last year.
• Revenue improved 59% from 2006
• Operating Profit After Tax improved from USD 49 mil to USD 58 mil.
• In contrast, cost of sales only increase by 22%. The management has done well keeping control of the cost. Read more…

Inter-roller Engineering Full Year results:Was it that bad?
Inter-roller just released a set of rather disappointing earnings.

• Revenue was down 11.5% for the 4th quarter
• Revenue was down an overall of 13.7% for the full year
• Made a profit loss for the 4th quarter. The first after a long time
• Overall a 32.5% fall in net profits.Read more…

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By: La Papillion
Yongnam
Had this company for a while, but this is the first time I did a closer look at their financial statements. From the press release, it seems that Yongnam had a good result. A closer look should be able to see if this is really true. Read more…

Ossia International Ltd
They had just released their full year results for FY07, so there’s more things to look at in comparison with FY06.

Gross profit went from 50.9% in FY06 to 52.1% in FY07
Sales went up by 9.8%
COGS went up by 7.2%

As sales went up, COGS went up by a proportionately lower amount, bringing gross profit up a little. Read more…

Reply to Ossia’s post
Yong said,

I spotted a few errors in your analysis and inaccurate statements. Allow me to correct them one by one.

1)”From hence on, there will be higher expenses from the rental of the building in which they sold and leased back. ”

Ans: This is not true at all. Read more…

Old Chang Kee
Okay, let’s get down to Old chang kee. It’s just out of sheer curiosity that I’m interested in their full year financial results. I liked their curry puffs in the past and I always see long queues of people buying their stuff, so naturally I’m interested to see if popular products equates to good business. Old Chang Kee (OCK) recently IPO.

Revenue increased 20% from FY06 to FY07
COGS increased correspondingly by 21.6%
Gross profit rises 19% Read more…

FJ benjamin
Since I did Ossia, I might as well do a little analysis on FJbenjamin too. This have a similar business to that of Ossia of retail. FJben sells watches, apparels and have a 30% stake in St.James power house too. Flipping their annual report for FY07, this is what I see:

Turnover increases at a CAGR of 25.0% from 2003 to 2007
Net earnings increases at a CAGR of 94.8% for the same period. Read more…

Related posts:

1. China Fishery – 1H 2009 Financial Review and Analysis
2. Stock Valuation and Dividend Sensitivity Analysis:How does price and dividend affect each other?
3. MTQ – 1H FY 2010 Financial Analysis and Review