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China Fibretech Reports First Half Earnings of RMB43.7 Million (31 Jul 09)

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  • Revenue: -37.7% (2Q09), -13.9% (1H09)
  • Net Profit: -48.4% (2Q09), -19.6% (1H09)
  • Press Release: Revenue for 1HFY2009 declined 13.9% year-on-year to RMB184.3 million despite an increase in the average selling price, mainly due to the decrease in demand of our fabric processing services.
  • Gross profit decreased 14.6% from RMB67.5 million to RMB57.6 million year-on-year due to the decrease in demand of the Group's services, and was partially offset by the increase in average selling price.
  • Overall gross margin dipped marginally from 31.5% in 1HFY2008 to 31.3% in 1HFY2009.
  • Net profit declined 19.6% from RMB54.3 million in 1HFY2008 to RMB43.7 million in 1HFY2009.
  • Earnings per share declined to 9.8(1) RMB cents in 1HFY2009 compared to 15.2(2) RMB cents in 1HFY2008.
  • Net asset value per share rose to 101.0 RMB cents as at 30 June 2009 versus 91.2 RMB cents as at 31 December 2008.
  • Outlook: The outlook for the fabric processing industry will continue to be challenging and uncertain in FY2009, given the slowdown in the world economy.
  • Financially, the Group remains well capitalized in terms of its cash position and asset base.
  • The Group believes it is also in an advantageous position because all of the Group’s customers are based in the PRC and domestic demand in the PRC will continue growing albeit at a slower pace than before.
  • Only a small proportion of its customers’ fabrics are ultimately exported.
  • In addition, the Group maintains a diversified customer base of 200 with none of its customers constituting more than 5% of its sales, thereby controlling risk associated with customer concentration.
  • Finally, the Group believes the overall barriers to entry in the fabric processing industry remains high due to the capital intensive nature of the industry and its stringent environmental requirements imposed by local authorities.
  • In addition, the Board and Management will take a prudent and conservative approach by dealing with the challenges by decelerating its expansion plans and conserving cash to adequately deal with the challenging market conditions and to capitalize on any opportunities with the view to create long term shareholder value.
FINANCIAL RECORDS

Revenue (RMB '000)

FY 1Q 2Q 3Q 4Q Total
2009 107,615 76,665
2008 91,004 122,978 133,310 122,973 470,265
2007 83,117 98,115 98,997 98,622 378,851
2006 NA NA NA 86,322 329,900
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Earnings (RMB '000)

FY 1Q 2Q 3Q 4Q Total
2009 27,350 16,305
2008 22,697 31,602 36,612 28,416 119,328
2007 22,000 25,493 27,951 18,677 94,121
2006 NA NA NA 17,320 64,760
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Dividends

FY Interim Final Special (RMB)
2009 NA
2008 0.025 NA NA
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Bonus / Rights / Stock Split

Date Type Details
NA
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Share Data (RMB)

NAV = $1.01
EPS = $0.098 (6M FY09)
No of Shares = 446,509,625
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ANALYSTS' TARGET PRICES

Broker Recommendation Target Price Date
NA



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