Some say a picture speaks a thousand words. With reference to Chart 1, it seems like China Animal (“CAL”) has almost tumbled 50% from the high seen in Dec 2010. What has happened? Is CAL[1]’s results worse than FY10? Are prospects dimmer than before?
Chart 1: CAL’s 2 year stock chart
Source: Shareinvestor (2 May 12)
Firstly, let’s compare FY11 vs FY10* results
With reference to Table 1, FY11 revenue and net profit rose 30% and 86% year on year (“y/y”) to RMB768m and RMB223m respectively. Excluding the gain in fair value of derivative financial instruments and amortised interest expense relating to the convertible bonds, adjusted net profit would have risen 78% y/y to RMB207m. EPS rose 84% y/y to RMB14.0 cents in FY11. *(I compared against FY10 results because the historical high share price seen inCAL was observed on 10 and 13 ...
...