China Agri 0606

China Agri 0606

Postby winston » Tue Jun 24, 2008 2:44 pm

BROKER CALL- China Agri target upped to 7.4 hkd on gas price hike -Goldman Sachs

BEIJING (XFN-ASIA) - Goldman Sachs said it is raising its target price on ethanol producer China Agri-Industries Holdings Ltd to 7.4 hkd from 7.0 due to higher gasoline prices boosting biofuel prices.

"Higher gasoline prices will boost biofuel earnings for China Agri. We reiterate 'buy'," Goldman Sachs said in a note.

The state planner announced a 1,000 yuan/ton increase in the price of gasoline from June 20. This implies an increase of 911 yuan/ton, or 18 pct, for the price of fuel ethanol, as the fuel ethanol price in China is pegged at 91.11 pct of the gasoline price.

At the mid-day break, Hong Kong-listed Agri was up 1.8 pct at 5.65 hkd.
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Re: China Agri 0606

Postby winston » Mon Dec 22, 2008 8:47 am

China Agri turns bullish
Benjamin Scent

Oilseed processor China Agri- Industries Holdings (0606) said yesterday net profit for the first nine months probably surged 180 percent over last year's full-year profits.

The company expects net profit for the nine months ended September 30 to reach HK$3.1 billion, compared to HK$1.1 billion for the full year ended December 31, 2007, according to The Standard's calculations.

The estimate of a 180 percent rise is a preliminary figure based on the company's unaudited management accounts, China Agri said.

China Agri managing director Yu Xubo said the increase in profit is mainly due to the company's conservative hedging policy for its oilseed business. The relevant commodity prices fell sharply during the third quarter, Yu said.

The company said it gives no assurance that the level of profitability in the first nine months will be repeated for the full year ended December 31.

China Agri is a unit of COFCO Group, the mainland's largest importer and exporter of food.

First-half net profit surged 174 percent to HK$1.686 billion while revenue soared 75 percent to HK$20.273 billion.
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Re: China Agri 0606

Postby winston » Thu Feb 19, 2009 9:33 am

Amid all this turbulence, I still think the food sector remains relatively safe. One stock Dr Check has looked at is China Agri- Industries Holdings (0606), which deals, among other things, with wheat and rice processing. It is also a commodities trader.

RBS has confidence in mainland consumer staples, as valuations of Chinese food and beverage picks "seem attractive," averaging 11.6 times the price earnings ratio for 2009.

The possible announcement of stimulus measures for the agricultural sector at next month's National People's Congress may be a short-term catalyst. RBS rates China Agri as one of its top picks, on "better earnings visibility and inexpensive valuations." It has a HK$7.36 target on the stock.

Also, asset injections from its parent bodes well for the stock.

COFCO Hong Kong has just announced asset injections worth HK$972.8 million into China Agri, including COFCO's soybean and peanut oil production along with its corn processing businesses in the mainland.

China Agri closed at HK$3.74 yesterday. Near HK$3.50, it looks very attractive.
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Re: China Agri 0606

Postby winston » Thu Feb 19, 2009 2:50 pm

DJ MARKET TALK: China Agri +3.5%; Assets Buy Taken As Positive

1202 [Dow Jones] China Agri-Industries (0606.HK) +3.5% at HK$3.84, adding to 4.8% gain yesterday on news it plans to buy 4 agricultural processing companies from parent for HK$972.8 million, which will be funded via issuing 263.6 million new shares at HK$3.69 each.

Deal taken as positive as based on target firms' combined net profit of HK$197 million in 2008, deal priced at 4.9X historic P/E. Quam Research forecasts China Agri's FY08-09 recurring net profits at HK$2.38 billion, HK$2.41 billion respectively, putting stock on 5.8X forward earnings; still, only rates stock at Hold due to "high volatility in earnings." Volume modest at HK$23.4 million; stock hasn't traded above HK$4.00 since early January, likely short-term cap.
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Re: China Agri 0606

Postby greenhoney » Fri Feb 20, 2009 9:28 am

they are one of the big trading houses in agri products but just like others, these guys go by large volumes with razor thin margins. and i am not sure if the chinese government have price controls for basic products like sugar, flour or wheat? if so, the price controls will certainly limit their profits even if the price of commodities goes up.

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Re: China Agri 0606

Postby winston » Wed Apr 08, 2009 11:20 am

DJ MARKET TALK:MS Downgrades China Agri-Industries To Equalweight

0954 [Dow Jones] STOCK CALL: Morgan Stanley downgrades China Agri-Industries (0606.HK) to Equalweight from Overweight on view current stock price has factored in base case and lack of near-term earnings growth catalysts. Cuts target to HK$3.80 from HK$5.90 after lowering 2009-10 earnings forecasts by 8%-16% on continued weak demand, soft commodity prices.

"We suggest investors wait for a clearer indication of a more prolonged recovery in demand or margins to trigger a rerating." Says still positive on company's long-term prospects as leader in industry consolidation; adds, could gain market share despite economic downturn.

Forecasts FY08 EPS at HK$0.75 vs FY07 at HK$0.31; FY08 results due April 14. Shares down 3.2% at HK$4.00 at pre-open.
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Re: China Agri 0606

Postby winston » Thu Apr 16, 2009 9:47 am

DJ MARKET TALK: China Agri Trading At Deep Discount To Peers-HSBC

1507 [Dow Jones] STOCK CALL: HSBC keeps China Agri-Industries (0606.HK) at Overweight, target at HK$5.50; says will revisit forecasts once management provides detailed guidance. Notes FY08 sales +45% on-year at HK$42.3 billion, in line with house's forecast, but operating profit +292% on-year at HK$4.5 billion, topping house's forecast by 5%, mainly due to record high margins in oilseed processing business, which accounts for 72% of company's operating profits.

Notes however, net profit after minorities and tax came in 20% below house's forecast due to effective tax rate rising to 20% vs 2007's 2%, minority interests rising 463.8% on higher profitability in oilseed processing business, including some JVs.

Notes stock currently trading at 7.4X 2009E P/E and 0.9X 2009E P/B, at deep discount to food processing peers 2009 averages at 14X P/E, 3.0X P/B. Shares up 3.3% at HK$4.37.
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Re: China Agri 0606

Postby winston » Mon Aug 10, 2009 10:37 am

COFCO sees lower H1 earnings as margins fall

HONG KONG, Aug 10 (Reuters) - China Agri-Industries Holdings (0606.HK) said its first-half net profit would fall by about 40 percent from a year earlier on shrinking gross profit margins as the operating environment was affected by the global financial turmoil.

The Chinese agriculatural products distributor said on Sunday that its gross profit margins for oilseed processing and brewing materials decreased significantly during the period. It said profitability was in line with management expectations.

The company's shares have risen more than 44 percent so far this year to end at HK$5.55 on Friday.
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Re: China Agri 0606

Postby winston » Tue Nov 24, 2009 11:02 am

Not vested.

DJ MARKET TALK: GS Upgrades China Agri To Buy;Raises Target 45.1%

1042 [Dow Jones] STOCK CALL: Goldman Sachs upgrades China Agri-Industries (0606.HK) to Buy from Neutral, raises target to HK$10.30 from HK$7.10 after increasing 2009-11 earnings estimates by 12%-22%.

"We believe China Agri's 2H09 earnings will be better than our expectations, given an improving oilseeds crushing margin and a quick ramp-up in small packed rice sales."

Says, better margin, strong expansion, investors' increasing interest in China basic food market to drive re-rating of stock.

Source: Dow Jones Newswire
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Re: China Agri 0606

Postby winston » Mon Feb 04, 2013 2:24 pm

not vested

<Research Report>CHINA AGRI (00606.HK) kept Overweight, TP reduced to $5.4 by JPM

CHINA AGRI (00606.HK) expects 2H2012 net profit to hold flat from a year ago at $765 million, representing an in-line semi-yearly growth of 50% probably due to a strong recovery in oilseed margins, JPM said in a report.

CHINA AGRI recorded a net profit of $1.27 billion last fiscal year, meeting JPM's estimates.

The broker believes CHINA AGRI's margin recovery will sustain throughout this fiscal year.

CHINA AGRI is kept Overweight with target price reduced from $5.6 to $5.4.

Source: AAStocks Financial News
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