C&G Industrial

[kennynah]

No no the Saudis are the eventual winners. Hahaha

[la papillion]

Hello folks, is C&G a competitor of sinotech fibre?

Not sure leh, I'm no fibre kind of investor, haha

Here's what I get from wallstraits:

For C&G
---------------
The Group manufactures and distributes PET chips and yarn products for the textile industry in China. The PET chips are fibre-grade PET chips and comprises bright PET chips, semi-dull PET chips and alkali-soluble PET chips. The various types of yarn products are pure polyester spun yarn, cotton and polyester blended yarn, viscose yarn and flame-retardant yarn. CG Tech places strong emphasis on research and development (”R&D”) and is constantly looking into augmenting its product range and improving its production process and techniques to keep at the forefront of its industry.

The Group’s major customers are mainly chemical fibre and textile manufacturers based in the Fujian, Guangdong and Shandong Provinces of China. CG Tech’s operations are located in Longyan City, Fujian Province, which is situated at the intersection of Fujian, Guangdong and Jiangxi Provinces. Fujian and Guangdong are two of the principal hubs for the textile industry in China and many of its customers and suppliers are based there. Its close proximity to its customers and suppliers helps the Group to reduce logistics costs.

For Sino techfibre
-----------------------
Sino Techfibre produces polyurethane and microfibre synthetic leather for customers in China. It mainly sells to manufacturers and trading companies operating in the fashion apparel, sports apparel and equipment, luggage and travel accessories, and upholstery industries, as well as government departments in China for their apparel requirements. Its manufacturing facilities are currently located in Longkou Economic Development Zone, Shandong Province, PRC.

Sino Techfibre's principal products are polyurethane synthetic leather and microfibre synthetic leather. Its polyurethane synthetic leather is manufactured and processed mainly through two different methods-- wetcoating process and dry-coating process. The manufacture of microfibre synthetic leather includes the manufacture of base fabric using advanced technology to achieve a dermis feel that has a closer resemblance to genuine leather than polyurethane synthetic leather. Each of these products can be customized for texture, thickness, color, premeability and elasticity.


Not competitors in the sense of same products, but possibly competitors in terms of substitute products.

[Musicwhiz]

And La Pap, I just checked on SI the PE ratio for this company.. it is now 2.5

Here is one score for the Investment Myths Busted - Cheap Stocks do get cheaper

Just kidding hor..

I guess one will have to measure up the company against its competitors and also cast a glance at the industry itself. PER is not a very accurate guage especially when the industry may be experiencing contraction or weakened demand (for whatever reasons).

As I do not understand the fibre industry very well, I have chosen not to invest in any such related companies.

P.S. - La Pap's analysis is very good, and serves as a guide as to the right questions an investor should ask about a business.

[Dubby]

C&G Industrial (CNGI SP, $0.175)

• C&G took a hard knock this morning with its share price plunging 27% to close at S$0.175 after the release of a disappointing set of 2H08 results. Revenue fell 7.3% yoy to RMB393m.

The bottom line took a greater hit with net profit plunging by over RMB20m, or 26.6%.

Not vested. Above was from CIMB.

[millionairemind]

The stock is now trading at 5-6cts.

With over 3X more cash than the stock price and still continued selling in this stock, something is NOT RIGHT....and the management's silence since August when it released is poor result is a MAJOR concern.

[millionairemind]

Results out. Incurred a loss for 3Q. No surprise there due to high raw material cost.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[Mr_Boring]

The stock is now trading at 5-6cts.

With over 3X more cash than the stock price and still continued selling in this stock, something is NOT RIGHT....and the management's silence since August when it released is poor result is a MAJOR concern.

I am not surprised. That is how the Chinese work.

[winston]

C&G Industrial issues profit warning By UMA SHANKARI

C&G Industrial Holdings, a China-based maker of functional yarns and polyester fibre, on Tuesday said that it is likely to report a significantly lower consolidated net profit for the financial year ended December 31, 2008 (FY2008), as compared to the previous financial year.

'Details of the Company's consolidated financial performance for FY2008 will be disclosed when the Company finalises and announces its financial results for FY2008,' C&G said in a filing to the Singapore Exchange.

For FY2007, C&G reported a 21.8 per cent increase in net profit to $164.2 million yuan. Revenue for the 12 months ended December 31, 2007 rose 23.9 per cent to $875.9 million yuan.

C&G shares lost 0.5 cents to close at 8 cents on Tuesday.

[winston]

Diworsesification..

• Proposed acquisition to broaden income streams as existing core textile business suffers from adverse economic conditions

• Tapping on proven and profitable business model from waste\ incineration power plant located in Jinjiang, Fujian Province, PRC

SINGAPORE, 16 April 2009 – C&G Industrial Holdings Limited (“C&G”, or the “Group”), is pleased to announce that the Group has entered into a non-binding memorandum of understanding ( “MOU”) with CUGU Group (Hong Kong) Limited (or the “Vendor”) Lam Chik Tsan, and Cai Junyi for the proposed acquisition of the entire issued and paid-up share capital of CUGU Environmental Protection International Limited (“CUGU EPIL”, or the “Target Company”), a company specializing in waste incineration power plant projects.

[la papillion]

When i knew of the annoucement to enter a new field, I thought of Peter lynch's diworsesification too. It seems like management thinks that increasing activity would somehow increase profitability.

Not vested.