China Biodiesel Share Discussion Threads

[tim00] 11/6/2010 08:07

Well, that explains the lack of communication I've had with the FD. I did wonder if something was going on behind the scenes, Gloria He has been very engaged in the past. Still, at least the price is well above the current share price and the price most recent investors will have paid.

[jailbird] 11/6/2010 08:06

what did i ask they other day...abt director holding so much

[zangdook] 11/6/2010 08:03

oops! delisting.

[woracle] 11/6/2010 00:37

Oh dear Madmonk. You ever done any research here ? Surely you are aware CBI effectively stopped producing biodiesel few years ago precisely because of gov. controls on fuel price. They switched production from biodiesel to chemicals CME ( B1 ) and C16C18 ( B2 ), prices of which are not gov set! Double doh...

[madmonkflin] 11/6/2010 00:16

chinese govt sets the bio price so if crude, bio should as well. Doh!

[woracle] 11/6/2010 00:11

so qipincha, how does the price of crude affect Coconut oil methyl ester(CME)and C16C18 Fatty acid methyl ester ? Because thats 97% of what they actually produce and sell if u havent noticed !

[qipincha] 10/6/2010 11:07

crude oil price above 74 again. see whether it can break 75 this time.

[tim00] 09/6/2010 08:06

A minor piece of info. I emailed the FD sometime ago, but she hasn't replied yet. From experience, that means (a) she's on holiday (b) the company is so busy that she hasn't had time to reply, or (c) an RNS is imminent, which she can't pre-empt. I do think a trading update will be issued, I just don't know when. Maybe next month when the company will pretty much know the H1 figures.

[qipincha] 04/6/2010 09:57

tim,

I am not worrying the company at this stage. The crude oil price climb back to $75/b, as long as the price is steady/rise, we shall see a good result.

I guess the company is expanding their production line as they planned this awhile ago. Maybe to build a new factory around GuangZhou(the biggest city in south China with a population of over 10m). If they do so, the volume of feedstock can increase significantly.

[tim00] 04/6/2010 07:30

I get the impression that the official diesel price tends to follow the market price rather than vice versa, ie it has no impact on market prices but may be a sign of market trends. Crude palm oil (CPO) material prices have also been a little weaker recently, reducing CBI's feedstock costs. I'm afraid we just have no visibility on profit margins, but the key is the rate of sales volume growth, given that currently all our pofits stem from VAT rebates and government grants (which have continued this year), the former being dependent on sales volumes. With the Chinese economy growing strongly this year, one would expect sales volumes to have strengthened further.

[qipincha] 03/6/2010 12:45

If I were Mr Ye, I won't comment on current trading condition as there is so much uncerainty, especially the price drop over last two weeks， which might have negative impact on profit margin(of course not as bad as in 2008). The oil price is steady this week, if this trend can be maintained, we might be able to hear from the company regarding the trading soon.

[tim00] 02/6/2010 10:19

It's very generous of Mr Ye to decline his dividend, this is the second time he's done this. It does suggest he has the best interests of the company at heart.

I did notice on rereading the full results recently that they have a very large parcel of land at one of their factory sites, much larger than the plots they have factories on, and it appears they are currently seeking permission from the authorities to develop the land - for what use we don't know. See Note 13 to the accounts. Maybe we'll find out more in the coming months.

[qipincha] 02/6/2010 10:11

thanks, I read it.

[tim00] 02/6/2010 10:09

AGM result out. The exec chairman has declined his dividend of about RMB 850,000. No trading statement this year. I've already emailed the FD, but don't suppose she'll comment on current trading.

[tim00] 02/6/2010 08:37

it doesn't bother me. It is in fact just the single Director, the exec chairman. He's pretty much had the same holding since the company floated. I would guess he will release shares as institutional demand for them recovers, based on the company's operational performance. It's not a trading share, but a 5 year investment in my view. On that timescale there is plenty of opportunity to expand the business through organic growth, M&A etc. Upside is enormous if things go well. And the business is underpinned by net current assets of about 5p per share and net asset value of 40p per share.

[jailbird] 02/6/2010 08:29

r u guys comfortable that this the 74% of the major shareholders are the directors.?

INVOCAS are trying to delist from AIM after holding 64%,
this made me mthink of CBI

[tim00] 02/6/2010 08:26

yes, there was an RNS at about 10am last year

[qipincha] 02/6/2010 08:21

The directors propose a final dividend for 2009 of RMB0.0253 per share which, if approved by shareholders at the Company's annual general meeting on 2 June 2010, will be paid on 5 July 2010 to shareholders on the register at 18 June 2010 (2009: no dividend).

we should have AGM result today

[qipincha] 01/6/2010 16:37

the crude oil price is back to 70 region

[tim00] 01/6/2010 16:13

AGM and brief trading statement. Last time they reported sales volumes for Jan-April 2009, compared with 2008. It's reasonable to assume that profits are indeed largely determined by sales vols at the moment, unless we hear otherwise. I guess there was a sharp improvement in sales vols in Q4 last year (because the profit warning turned out to be unnecessary), which I hope has continued into 2010.

[qipincha] 01/6/2010 15:10

don't know
but if you have time, take a look at spi, it's doing well

[aim11] 01/6/2010 10:20

results tomorr?

[qipincha] 28/5/2010 10:00

jkershaw
"profit margin wont have increased any", is it true?
My understanding is the profit is related(proportioned) to the volume of sale, you can found that in their last report, the volume of sale has gone up already in H2 2009.

[aim11] 28/5/2010 09:30

because its going up and the stock is trading - unsually - 25k+ in recent days. they are buys ahead of the numbers next wk. actually q4 was quite a strong qtr on qtr performance, if that continues into q1 then stock will be up. if they weren't expecting a decent update why would they buy?!...i didn't say we'd get a decent update, can never be sure

[jkershaw] 28/5/2010 08:57

aim11 - "think there are a few buyers expecting a decent update shortly" why do you think that? Earlier debates suggest the profit margin wont have increased any and until it does this stock isnt going anywhere