- Much improvement from it's Q4 numbers.
- Receivables. Increased a lot yes?
And that's about I can say.
Could I dare suggest Xingquan is lousy? Nope.
Could I dare suggest Xingquan is great? Can I?
Previous postings:
- 10 Aug 2010: Regarding Xingquan
- 16 Aug 2010: Quick Review Of Xingquan's Earnings
- 19 Oct 2010: Xingquan's TDR
The Oct posting has an interesting issue.
CIMB's earnings forecast.
Ahem... 2010, Xingquan is projected to earn some 150.7 million. In 2012, Xingquan is EXPECTED to earn some 170.4 million!
And Xingquan only earned some 25.556 million for 11 Q1.
Not very encouraging yes?
And then there is the potential 12% dilution from the proposed TDR......
from yr above figures: Receivables are actually down. Up in 1Q 11 figures NOT 4Q 10 figures.
ReplyDeleteDear Moolah,
ReplyDeleteThank you for the brief and precise update. The bad thing is that they have yet to be able to deliver dividend which is a dampener.
Hi Moolah,
ReplyDeleteA bit of add on to your quick review. First, the receivables is up almost twice as much than the sales, which is worrying if it becomes a trend.
Second, their tax exemption on a major entity, addnice sports which produces 80% of its revenue will ends on 1 Jan 2011, so, on the 2HFY2011, Xinquan need to make 10% (80%*12.5%) just to make up the lose ground.
Third, they have some advances from directors, which I am not sure whether it is needed since they have so much cash which prompt me to look at their cash and interest income. They earn an annualize interest rate of just 0.33% [(498*4)/((587000+631000)/2)], which is suspiciously lower than that of the current interest rate of China banks-0.36%. Here's the interest rate from ICBC :http://bit.ly/9hF5xN . I have check my computation a few times as it is really too low. It means that they are keeping a lot of money in their office to earn such a low rate. But, if so much of their money is in their office, do they need any advances from director? So, I can't resolve this inconsistencies. But, the advance from director is very low- RMB172k only. However, the interest they earn is surprisingly low, which is a bit worrying. If the money is kept as strategic cash hoard, I think, as a successful businessman like Xinquan owners are, they should be logical enough to put into higher yielding account. But, the current rate is even lower than that of the lowest savings account rate.
Mind to link exchange? ur's already there... thankss..
ReplyDeletefuadws: And what's the link you would like me to put up?
ReplyDeleteJust wanna say, Great Read, as always... Maybe you'd wanna have a "like" or "don't like" button? LOL! =D
ReplyDeleteCIMB mentioned: "We are scaling back our FY11-13 EPS forecasts by 8-13% to reflect a margin squeeze from the sharp rise in raw material prices."
ReplyDeleteFy 2011 forecast is lowered to 137.7 million.
FY 2012 forecast is lowered to 149.4 million.