Qingmei: FYJun10 results. Revenue +42% yoy to RMB 1.2bn, buoyed by economic recovery and strong domestic consumption in the PRC, which boosted sales volume. Although gross margins improved 2.2% pts to 30.5% due to better product mix and scale effects, higher operating costs related to increased wages, and one-off expenses related to IPO, were a drag on net profit, +37% yoy to RMB 250m. Dividend of RMB 11.72cts, which translates to yield of 9%, one of the highest amongst SGX counters...
Mgt positive on outlook, but notes slight delay in construction of new pdtn facility which would take up to 1.5 yrs to complete. Targets to increase max annual pdtn capacity from 45.6m pairs of sports shoes currently, to 65m pairs in 9mths, and to 84m pairs another 6mths later. Stock trades at 3.3x PE.
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