China Corn Oil 1006

[winston]

Vested. From Dr. Check, The Standard HK:-

Recently, I recommended China Corn Oil (1006) at around HK$5. The stock surged more than 20 percent two weeks later.

Unfortunately, it has tumbled in the last two sessions, closing at HK$4.82 on Friday. This is disappointing. But don't panic. Let's check the underlying reasons for the fall.

The company recently reported a poor interim profit of 44.4 million yuan (HK$50.8 million), down 17 percent from 2009, despite sales surging 22 percent. Advertising and distribution expenses rose from 4.7 million yuan to 22.6 million yuan while administrative costs jumped from 3.5 million yuan to 12.1 million yuan.

The company is spending more on promoting its products, and the outcome of this campaign could materialize in coming months.

So I would say the figures are not that bad. As the share is trading at an attractive expected price-earnings ratio of around 13 times, I recommend holding on to them.

http://www.thestandard.com.hk/news_deta ... 00830&fc=1

[eauyong]

Wondering what is the consumer preference? Does the majority like corn, soy, palm or .......and the trend is ......