Cacola Furniture

[millionairemind]

SINGAPORE, 13 May 2008 – Cacola Furniture International Limited, an integrated lifestyle furniture designer and manufacturer in the PRC, has posted net profit of RMB44.9 million for the first quarter ended 31 March 2008 (“1Q2008”), a 72% increase from RMB26.1 million achieved in the corresponding period last year. This was on the back of a 38% rise in revenue to RMB188.5 million, from RMB 136.8 million in 1Q2007. Earnings per share rose 27% to 13 RMB cents, from 10.2 RMB cents in 1Q2007.

Couple of additional personal comments:
1. They derive most of their rev. from China... making them immune to any slowdown in the US
2. Cash value per share is around 20cts/share (total trade rec+cash/total share outstanding)
3. No long term liability
4. Current liability easily taken care of by net cash generated from operations
5. Given the terrible snow storm in 1Q and the long Chinese holidays.. their earnings growth is pretty impressive
6. Product gross margin better than last year.

Basically strong cash position (not going to flip over anytime soon) with good growth.

I am vested thro' right after follow thro' day at around 29cts and collected around 1.3cts of dividend just this week.

Not a recommendation to buy or sell this stock. If you do intend to take this investment if you see this post and made some money, kindly consider donating a little of the profit to charity.

Cheers,
MM

[helios]

can MM elaborate on your point 3?

[millionairemind]

San,

Here is the link to the Q1 report. They just came on board via IPO late last year so they have no long term liability (unless I missed something in the report ). They got sold down hard in January after hitting a high of 57.5cts.

http://info.sgx.com/webcorannc.nsf/37e9 ... enDocument

Hope this helps.

Cheers,
mm

[winston]

Hi MM,

The following are some Target Price that I've on the counter:-
1) OCBC 0.75 Apr 17 Mar 9 Jan 10 Dec 6
2) Phillips 0.63 Feb 27 from 0.81 Dec 13

Take care,
Winston

[yeokiwi]

Cacola is selling at a ridiculous PE of 3.2 with a possibility of rapid growth in the next 1-2 years.

Cacola is basically riding the wave of lifestyle upgrading in PRC. However, due to the rapid expansion, Cacola is also facing service quality issues. There are cases of consumers complaining about the quality of their furnitures and also the ambiguous discount during their sales.

For those who are able to read chinese

http://www.yxad.com/Article/HTML/1692.shtml
http://www.carpetchina.cn/Credit/detail ... -11273.htm
http://www.jschina.com.cn/gb/jschina/no ... 16659.html

However, since the share is ridiculously cheap, the above issues are less of a concern

[kennynah]

yeowkiwi :

also good to see u here

i noticed that your avatars contain "self-destruction" theme...the last one was self-torching one...very unique

[millionairemind]

Thanks YeoKiwi for the leads... Appreciate it.

[yeokiwi]

Hi MM,

Investing can be self-destructing if we are not prudent enough
So, I put the self-destructing avatar to remind myself to be careful.
Besides, it is also a source of mini entertainment for the rest.

rgds

[LenaHuat]

Hi yeokiwi
Welcome!
Like your avatar too. It's a very refreshing idea.

Hi K
U've a very keen eye! (I mean to take note of Y's avatar).

Hi MM and Winston
This counter looks like a good consumer play.
OK, will put this on my radar screen.

[yeokiwi]

I realised I addressed the wrong person.



I should be replying to k. hehe..