Zhejiang Jingxing Paper (002067): Sharply Rising Costs and Revenue

  • Contributor:TX Investment Consulting
  • Date:Sep 2, 2008
  • Pages:3pages
  • Price:$40.00
  • File Type: Adobe Acrobat Reader®
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Excerpts:

For the period of January-June 2008, the company achieved operating income of Rmb1.107bn, an increase of 124.06% yoy; profit: Rmb54.2009mn, rising 15.10%; net profit to the parent company: Rmb39.8587mn, a decrease of 4.71% yoy; basic EPS: Rmb0.10. In addition, it also released its foreseen notice of Q3 earnings: it was estimated that net profit contributed to the parent for the period of January to September would fall 30% to 50 % on the year-on-year basis. Substantial revenue growth mainly came from capacity expansion. The company’s capacity doubled over the same period last year, thus promoting the increase of revenue. Potential risks: 1) soaring costs; 2) market development of newly added projects; 3) slowdown of GDP growth rate and shrink of downstream demand; 4) financial risks due to expansion of operation scale.


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