China Lumena New Materials 0067

China Lumena New Materials 0067

Postby winston » Tue May 03, 2011 7:59 am

Not vested. From Dr. Check, The Standard HK:-

Take a look at China Lumena New Materials (0067).

It is engaged principally in processing and selling powder, specialty and medical forms of thenardite. They are used widely for medical and environmental protection products.

The company sold convertible bonds worth US$120 million (HK$936 million) to China Investment Corp and CITIC Capital China Access Fund.

The stock has since revisited an all-time high yet still trades at a reasonable nine times earnings.

The stock is now at HK$4.03. It would look quite attractive at around HK$3.70.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: China Lumena New Materials 0067

Postby winston » Wed Jul 13, 2011 6:08 am

Not vested

China Lumena New Materials (0067), which plunged 9.9 percent, had 10 flags from Moodys.

Source: The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: China Lumena New Materials 0067

Postby winston » Wed Apr 04, 2012 6:11 am

not vested

Lumena rebounds as investors assured by Natallie Cai
Tuesday, April 03, 2012

Privately held China Lumena New Materials Corp (0067), whose shares rebounded yesterday after Friday's tumble, assured investors that major shareholder Suolang Duoji will continue to hold more than 30 percent of the company.

Shares advanced by 24.5 percent to HK$1.73 yesterday after falling 28 percent on Friday as more troubling accounting issues related to non- state-owned mainland firms emerged.

On Friday, the firm said earnings jumped 74.4 percent to 1.27 billion yuan (HK$1.56 billion) last year, but account receivables also surged 77.6 percent to 1.4 billion yuan. Inventory rose 7.3 times to 67 million yuan in 2011.

Executive director Rudolf Yu Man-chiu yesterday said there are no accounting and management issues. "The share slump on Friday was probably due to sale by minority shareholders, and had nothing to do with our operations."

According to market rumors, a hedge fund had sold the stock on Friday in afternoon trading.

Gross profit margin of the Chengdu-based thenardite - an edible mineral powder used in powdered detergent, glass and pharmaceutical products - and resin products maker fell about 9 percentage points to 63.5 percent in 2011.

"Margin was dragged down by lower margin of PPS [polyphenyline sulfide resin] products we acquired from Sino Polymer New Materials last year, and also the selling price of thenardite fell in the fourth quarter," chief executive Zhang Daming said. Gross profit margin will remain above 60 percent this year, he said.


http://www.thestandard.com.hk/news_deta ... 20403&fc=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: China Lumena New Materials 0067

Postby winston » Mon Sep 24, 2012 3:29 pm

not vested

Summary

The business structure of company has experienced slight adjustment in the 1H2012, the revenue proportion of thenardite has been decreasing and the PPS business has become the core business.

The entrance barrier of normal and special thenardite is so low that the competitors may keep increasing in the future, and the improvement of products are limited, so the revenue may decrease in the future.

The medical thenardite shows good operation results, with the monopoly industry status, the medical thenardite business has stable growth rate, but considering the defensive nature of medical, the business may show warm growth in the future.

The PPS business has showed stable growth in the report period and already instead of thenardite to be the core business of China Lumena. The negative effect from the economy recession is also limited.

The operation results has changed little to 2011, but considering the deteriorating economy, the operation results is acceptable.

The EPS in 2011 is CNY 0.23, the increase of share resulted into the declining of nominal EPS. We estimate that the operation results of the 2H will be improved. With the adjustment of business structure, the growth in medium and long term will be stable. We estimate that the EPS in 2012 will be CNY 0.24.

Considering the situation of the whole market, the target price in next 6 months is HKD 1.75 under 6x PE we estimated, the rating is BUY.


Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: China Lumena New Materials 0067

Postby winston » Tue Jan 15, 2013 11:48 am

China Lumena New Material

Recommendation: BUY
Previous close: HKD1.86
Fair value: HKD2.45

• Since the unit price of thenardite is stable, CLNM’s thenardite business will be in steady level, with the support of its advantage business, the effect from external competition pressure will be lower.

• The unit price of thenardite in the 2HY of 2012 is in low position, the possibility of going up is bigger than 2011, it will benefits the growth of thenardite business.

• The market demand of PPS products has been increasing, the unit price of PPS has also been increasing in the 2nd half of 2012, it will stimulate the growth of operation results.

• CLMN had finished the repurchase of 250M senior notes that means the financial position of CLMN is in good condition, the ability to expand capacity is strong.

• The EPS in 2011 is CNY 0.23, the increase of share resulted into the declining of nominal EPS. We estimate that the operation results of the 2H will be improved. With the adjustment of business structure, the growth in medium and long term will be stable.

We estimate that the EPS in 2012 and 2013 will be CNY 0.24 and 0.39. Considering the situation of the whole market, the target price in next 5 months is HKD 2.45 under 5x PE we estimated, the rating is BUY.

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


Return to C

Who is online

Users browsing this forum: No registered users and 13 guests