Vinda International 3331

Vinda International 3331

Postby winston » Mon Jul 14, 2008 8:32 am

Sanitary giant to raise capacity
AlfredLiuin Jiangmen
Monday, July 14, 2008

One of China's biggest manufacturers of sanitary paper products plans to boost its annual production capacity by 80,000 tonnes by the end of this year.

The move by Vinda International Holdings (3331) will take the sanitary giant's capacity to 320,000 tonnes, which Vinda says is required because of a fast- growing market.

"There was a total four million tonnes of production capacity last year in the mainland. We also expect the growth of the tissue paper market to reach 8 percent to 10 percent in the country each year," said chairman and chief executive officer Li Chaowang.

The company expects to further boost its annual production capacity by 50,000 tonnes in 2009 and 2010, bringing capacity to 420,000 tonnes in 2010. "We spend about 50 million yuan boosting [production] by 10,000 tonnes," he said.

According to Li, the company can expand its production capacity by using internal resources from the proceeds of last year's listing.

Vinda is also facing the challenge of increased production costs, but feels able to pass on the increased costs to customers.

The main burden is the price of wood pulp for making paper, which accounts for about 50 percent to 60 percent of total costs, according to chief marketing officer Li Peilan. She said the price of wood pulp rose 6percent in US dollar terms in the first half this year. She expects the price to increase about 1 percent in the second half. Vinda raised prices by between 5 percent and 8 percent in the first half, due to the rising cost of raw materials.
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Re: Vinda International 3331

Postby winston » Wed Mar 11, 2009 9:30 am

Not vested. From Dr. Check:-

Today, let's talk about one of the the mainland's leading toilet paper makers. Vinda International (3331) also makes facial tissues paper and paper napkins.

Its share price is strong and near its 52-week high. The company listed in July 2007 at an IPO price of HK$3.68, raising HK$813 million.

The stock was once above HK$7 but drifted downward gradually, reaching HK$1.40 last September.

It has since gained more than 100 percent from its low and climbed to around the HK$3 level in the last six months. Vinda was one of only a handful of companies to announce positive earnings guidance in early February. Its 2008 net profit will have a "comparatively large growth" due to production capacity, an average-selling-price increase, and lower wood pulp prices. The consumer staples sector should be a steadier performer in a volatile market.

Brokers' target prices for Vinda range from HK$3.60 to HK$4.13.

It closed yesterday at HK$3. The stock seems reasonable around HK$2.80.
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Re: Vinda International 3331

Postby winston » Wed Apr 08, 2009 10:32 am

DJ MARKET TALK: Merrill Raises Vinda Target To HK$4.95 Vs HK$4.13

0920 [Dow Jones] STOCK CALL: Merrill Lynch raises Vinda (3331.HK) target to HK$4.95 from HK$4.13 on better-than-expected 2008 results. Raises 2009-10 earnings estimates by 12%, 13%. Keeps at Buy. Tips Vinda as remaining a top pick among smaller-cap China consumer companies.

Notes, gross margin in 2H08 was higher-than-expected at 23.5%, up from 18.7% in 1H08 on average-selling-price increases and lower production costs in 4Q08. "With pulp price now down by one-third on-year, we expect to see further gross margin improvement from the full-year benefit of lower pulp costs." Stock closed up 5.9% at HK$3.60 Tuesday.
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Re: Vinda International 3331

Postby winston » Thu Apr 09, 2009 10:45 am

DJ MARKET TALK: BOCI Raises Vinda Target 9.6%; Keeps Buy Call

0931 [Dow Jones] STOCK CALL: BOCI raises Vinda International (3331.HK) target price to HK$4.00 from HK$3.65, after increasing FY09-10 earnings forecasts by 10.7%, 13.4% respectively on decreasing raw material prices, strong demand for personal hygiene products; keeps Buy call on estimated 30.2% FY08-10 earnings CAGR.

Adds, tissue paper products are consumer staples; "we believe demand for Vinda's products will not be affected by the economic slowdown in China." Stock ended +5.6% at HK$3.80 post-results
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Re: Vinda International 3331

Postby winston » Thu Apr 09, 2009 2:42 pm

DJ MARKET TALK:CS Ups Vinda International Target 21.1% To HK$4.60

1206 [Dow Jones] STOCK CALL: Credit Suisse raises Vinda International (3331.HK) target price to HK$4.60 from HK$3.80 after increasing FY09-10 earnings estimates by 3%-6% to reflect stronger-than-expected FY08 results.

Tips company's bottom line growth momentum in 2009 should be even stronger, as 1H08 was in fact most difficult time for tissue industry, with wood pulp prices peaking and average selling price increase announced only in May. Adds, stock is now trading at 11.8X 2009E P/E, hence appears attractive. Maintains stock at Outperform. Shares down 1% at HK$3.76.
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Re: Vinda International 3331

Postby winston » Fri Jun 19, 2009 6:50 am

Not vested. From Dr. Check, The Standard HK

On March 11, I recommended leading toilet paper maker Vinda International (3331).

The firm also produces napkins and facial tissues. Its share price has been quite strong this year.

The company listed in July 2007 at HK$3.68.
The stock rose above HK$7 before falling gradually to HK$1.40 in September.

Vinda closed at HK$4 yesterday, a gain of about 200 percent from its lowest level. It is one of the few firms that outlined positive earnings guidance in February.

Vinda's net profit for the 2008 financial year surged 111 percent due to rising output, a price hike and cheaper pulp.

Vinda is trading at 11 times its price-earnings ratio for 2010 - reasonable for a fast- growing company.

Citigroup is bullish on the stock and targets HK$4.60.

Assuming paper pulp costs US$570 (HK$4,446) per tonne, Vinda's 2009 net profit may grow 59 percent.
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Re: Vinda International 3331

Postby winston » Thu Aug 20, 2009 7:37 am

Not vested. From Dr. Check:-

Vinda International (3331) may be another star. It is one of the mainland's leading toilet paper makers and also manufactures facial tissues and napkins.

From a low of HK$1.40 in October, Vinda's share price soared 307 percent to a one-year high of HK$5.70 in nine months.

Vinda's 2008 net profit surged 111 percent to HK$165 million, thanks to increased production, higher selling price and cheaper wood pulp. The mainland's consumer staples sector should be a steady performer in a volatile market.

Vinda closed at HK$5.12 yesterday, up 4.49 percent. Credit Suisse has set a target price of HK$6.

I recommended this stock in March when it was around HK$3. You may want to consider buying if Vinda drops to HK$4.80.
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Re: Vinda International 3331

Postby winston » Fri Sep 04, 2009 12:07 pm

Not vested.

DJ MARKET TALK: Vinda's 1H Pft Tipped Robust But Likely In Price

1150 [Dow Jones] Vinda International's (3331.HK) more than 20% share price gain vs August trough likely to have factor in plenty of expectations of robust 1H results after company issued positive earnings guidance last month; unless results come out much stronger than already lofty expectations, near-term upside may be capped.

Kim Eng forecasts full-year net profit +73.0% at HK$282 million, slightly below HK$295 million tipped by Thomson Reuters, driven by increased demand for quality tissue paper products in China, capacity ramp up, significant margin expansion due to drop in wood pulp price (like Hengan (1044.HK)).
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Re: Vinda International 3331

Postby winston » Mon Sep 07, 2009 3:29 pm

Drop 8% now ..

DJ MARKET TALK: Vinda Succumbs To Profit-Taking Despite Robust 1H

1116 [Dow Jones] Vinda International (3331.HK) down 2.6% at HK$5.71 after earlier climbing to HK$6.00, which set to act as short-term cap, as 1H earnings more than tripling flagged, profit-taking pressure emerges given pre-results rally.

Company warns of increase in raw material costs in 2H as wood pulp prices rebounded since April, also likely to dampen interest as robust 1H results mainly driven by margin expansion.

Kim Eng says 1H bottom-line of HK$180 million represents 63% of house's FY09 forecast, with gross margin 7.3 percentage points higher than forecast; despite potential lower gross margin in 2H as hinted by company, house likely to raise earnings forecast, pending analyst meeting today
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Re: Vinda International 3331

Postby winston » Mon Sep 07, 2009 3:49 pm

DJ MARKET TALK: Vinda Off 7.4%; Higher Raw Material Costs Eyed

1537 [Dow Jones] Vinda's (3331.HK) profit-taking intensifies, now tumbles 7.4% to HK$5.43, as more than tripling in 1H net profit flagged, some investors slightly spooked after company warns increase in raw material costs in 2H would dampen margin, which main driver of robust 1H results.

Technically, fall breaches 10-day moving average, next support of 20-day moving average at HK$5.38 key. BOCI says wood pulp prices bottomed out in April, may continue to rise in 2H09; expects margins to begin contracting in 2H, but not as much as broker had previously anticipated.

House raises FY09-11 earnings forecasts by 22%-28%; based on FY10 P/E of 14.8X, which historical average P/E, lifts target price to HK$6.60 from HK$4.64, keeps Buy call. Volume hefty at HK$113.4 million.
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