Ethanol sales perk up cassava planter by Sophie He, The Standard HK:-
Strong mainland demand has helped Asia Cassava Resources (0841) record a tenfold jump in net profit to HK$34 million for the six months ended September 30 compared with a year ago.
The basic earning per share was 11.3 HK cents. An interim dividend of 2 HK cents a share was declared.
The company, which listed in March, is Thailand's largest exporter of dried cassava chips. It is also the largest importer of the product in the mainland. Its market share in both countries is more than 30 percent.
Chief financial officer Shum Shing- kei said net profit from its core business registered 120 percent year-on- year growth in the first half.
The company is trying to buy more cassava from Southeast Asia to cope with growing demand from the mainland, particularly from ethanol fuel companies.
Dried cassava is one of the main ingredients in the manufacture of ethanol fuel, which can reduce carbon dioxide emissions.
"The Chinese government encourages the business, so we are very confident about the future of our company," said executive director Jimmy Chan.
Currently, only 20 percent of the dried cassava imported by mainland from the company goes to ethanol fuel making.
"The percentage may reach 50 percent in a few years since the government of China is determined to reduce the emission of carbon dioxide," Chan said.
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