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 (“1Q2008â€), 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