Shares & Derivatives
China Sports International 2008 Q2 result
By Alen  •  August 21, 2008
By: Alen china-sports.bmpIt is interesting to evaluate other sports player result also. Following is the China Sports International result for Q2. Revenue +50% Cost of sales +49.9% (in sync with revenue) Selling and distribution expense +281.5% Administrative expense +387.3% Profit before tax increased only 25.7% as a result of high expenses incurred. The group is probably trying to put resource to grow faster. Group has no debt Look at cashflow statement, profit before tax +25.7% Net cash generated from operation 123,932k RMB. Minimum cash used in investing and financing activities Cash at end of period 535,293k RMB. Strong cash position would allow them to grow aggressively. Q2 EPS number fall from 9.92cts to 8.7cts. But this should not be a cause of concern, since company is newly listed and this is calculated using pre-invitation shares. Revenue increase is evident. The cash raised during IPO was put into work and allow faster growth. The widen distribution network also contribute to the significant increase of operating expenses. This is normal. The rise of average selling price is a good sign the brand is gaining traction. OEM business seems to be getting the margin squeeze. Building own brand is the way to go. Read more...
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By Alen
Alen started investing in Singapore market since 2003. He adopt a fundamental driven, small cap bias investment style and believe using stock as a tool to build long term wealth. Constantly searching for multi-bagger.
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