Eco Animal Health Share Discussion Threads

[cerrito] 28/10/2021 10:08

Anyone have any views as to why the price has been drifting down?
I note that live pig prices in China U$ per kilo were for Yunnan and Guangxi at US5 in March and were a few weeks backs $2 and perhaps they have fallen since.
source:
The website
hxxps://www.pig333.com/markets_and_prices/china_106/
does suggest a bit of a tick up in October but not on the scale envisaged in the AGM statement.
Trading volumes in the last 3 weeks have not been very strong...last time more than 40k shares traded in a day was October 7..though am the first to admit I find it difficult to put these trading volumes in context.
As far as I can see apart from the Philippines nothing very much happening worldwide on the ASF front.
I have no intention of selling but having difficulty pressing the buy button.
Thoughts anyone???

[boonkoh] 17/9/2021 12:32

With ASF being endemic and likely no chance of eradication. Also vaccine still some time away (2-3 years?) then the revenues here at EAH are going to be unpredictable in the short to medium term.

[rmillaree] 17/9/2021 12:20

I can only guess one or two of the large holders are making a statement here - these issues may have been resolved now but they should never have arisen in the firstplace - pure speculation on my part here.

o could it be something to do with them opaqueness of how the do business in china?

all a bit strange i would have expected anyone voting against the accounts would also vote against the re appointment of the auditors and perhaps the directors - there wasnt the same vote agaionst ref those items though.

perhaps P A Lawrence is getting on a bit and tickedd the wrong box

[cerrito] 17/9/2021 10:58

53m of the 67m shares voted at the AGM time a surprisingly high figure given the shareholder base and suggests that shareholders are engaged.
Not sure why the accounts had so many against as the historical issues have been put to bed.

[rmillaree] 17/9/2021 10:32

"I regret that I can’t make much sense of your latest post, millaree."
don't worry it was a bit of a silly mad rant really - probably best ignored if i am being honest. feel free to ask any specific questions though if something looks factually incorrect in what i said.

[cerrito] 16/9/2021 19:22

Did anyone attend the AGM??
I would have liked to have made it but did not organize myself to register in advance.

[aimingupward2] 16/9/2021 17:15

I regret that I can’t make much sense of your latest post, millaree. Suggest you edit/ rewrite it.

[rmillaree] 16/9/2021 15:42

Lets hope you don't become a bitter long term holder like some (looks in mirror)
I don't argue that the future does generally look bright - i must say i have had my eyes opened ref chinse minority and reliance on pig health and china stufff last 6 months - so its a bit like my fisrt point will be tonight - not so glass half full after looking at it for 12 minues.

[cerrito] 16/9/2021 11:41

Those who bought before 9 this morning will not regret it.
I did not buy as I have my quota and did not sell as I have more cash than investment ideas and my view of this share over an 18 month period is better than companies on my watch list

[rmillaree] 16/9/2021 11:04

Wish i had cashed in my chips here - thanks to bods who were highlighting specific issues here previously - i had enough clues to tell me to get out when the going was better and i didnt.
It is a tricky one as i like the long term potential of wahtb they do - it is coming home to roost thoiugh that the murky dealings of china and the commodity type going on with regard to pig welfare and the like make this a company that simply tries my parience too much.
As wad collector has summarised

"Hard to interpret the sentiment behind that statement" - exactly and brutal market reaction is always the same when communication of what being said is poor. Market will rightly (hopefully wrongly here though) presume the worst

[tradertrev] 16/9/2021 10:37

I am hoping for some decent director buying.

[wad collector] 16/9/2021 08:45

Hard to interpret the sentiment behind that statement. On the one hand..

[1aconic] 16/9/2021 08:20

I guess it depends when the budget was set. If it was prior to the start of the financial year then they may simply be saying that they're encouraged with performance in the context of the market issues that have transpired since.

Generally speaking though, to me it seems utterly meaningless to talk about (internal?) budget rather than market expectations given that nobody outside the company has the slightest idea whatsoever what that actually is!

[aimingupward2] 16/9/2021 07:47

The initial drop in the share price seems to be an over reaction which I would expect to recover to some extent during the day.

[cerrito] 16/9/2021 07:12

Yes comments on China revenues no surprise to me.
Confused by their comments on ex China revenues. They are below budget but the CEO is encouraged by their performance.

[1aconic] 16/9/2021 06:33

Quite a negative general tone to the trading update today but revenue only 6% behind a very strong five months to August last year was actually quite a pleasant surprise to me this morning. Given the pork price weakness I expected it to be much worse.

[cerrito] 09/9/2021 08:02

I note that in today's annual results, GNS refer to volatility in the Chinese porcine markets producing short term headwinds.
There was a big article in the FT about 10 days ago on this volatility.

[1aconic] 01/9/2021 13:55

It seems to be based on news that China pork prices are rising through state buying for frozen reserves: Beijing bought more than 50,000 tonnes of meat during July, after pork prices fell below the cost of raising pigs.

The National Development and Reform Commission said in a statement on its official WeChat account that it will "once again launch the purchase work of the central pork reserve within a year."

[aimingupward2] 01/9/2021 11:37

- and again this morning.

[aimingupward2] 31/8/2021 12:11

Good to see this rising strongly today. I doesn't take much buying to do it!

[cureboy] 13/8/2021 18:02

A lot of mates rates 310p buys this week. Has to be a good sign longer term.

[farnesbarnes] 12/8/2021 15:39

Beer, bicycles and tax too.

[tradertrev] 12/8/2021 11:12

Nice to see the increase in the Danske Bank holding. If there's one thing the Danes know about, it's pigs :-)

[cerrito] 09/8/2021 20:57

A much delayed comment on the July 26 results . My issue is that while I have zero intention of selling especially at the current prices, I am hesitating to buy more and perhaps will wait till we see if we have a face to face AGM.
Given the strong semester ending in March somewhat counter intuitive that the price has fallen since the announcement, although perhaps we have now reached bottom.. Yes they did say that China had a slower start to this financial year but to me not realistic to think that China was to continue to go hell for leather.
One reason must be the lack of Financial PR and the other the mystery of China. Given the actions of the Chinese government over the last month this has become more topical. I take the view that EAH is small beer and more important there can be few western companies whose activities in China are as aligned to those of the CCP-keeping pork prices low- as EAH,. I guess the ongoing issue with ASF does not help sentiment and there are the issues raised in my 1273.
Good that little activity from major shareholders with last change of holdings RNS in mid February.
I have had a good run through the accounts
On matters China, note 15 tells us that the equity of Zhejiang ECO Biok Animal Health Products Ltd was £27m compared to total consolidated equity of £97m,
The currency risk section of note 32 is striking. It tells us that a 10% movement in the FX rate £:RMB produces an effect of £2.9m. We are not told how they define this. This reflects the increase in cash and receivables denominated in RMB from £9m to £26m in the twelve months to March 21. I am going on the basis that as EAH owns 51% of these the effect on our funds is half at £1.45m but please double check my logic.
Incidentally the £:RMB rate is relatively stable. It has moved from 9.03 at March 31 to 9 today. 11 months ago it did move from 9.16 on August 29th to 8.64 on September 23rd.
As the fixed assets including leased ones of the Chinese operation is £1.4m it begs the question of who owns the Chinese factory
It would be good to know about the dividend policy for the Chinese JV in light of dividends received in the last FY being per note 31 £585k compared to £1007k. the year before .though there do seem to be different figures.
Anyone know who the Chinese partner is? I suppose it is somewhere in the accounts. Would be interesting to know why they are OK with their 49% sub having the equivalent of £13.6m in cash.
Other questions
Why did wages and salaries go up from £10.9m to £14.9m-note 30. Note as per note 31 £170k of this increase was director’s emoluments.
Note 12 We need to note that intangibles represent 37% of net worth and so merit study. I go on the basis that the new auditors have had all the manholes up on this and the discount rate of 8% is for me appropriate
Note 17 While amount of inventory overall was in line with what I would expect interesting to know increase in raw materials section.
Note 18 Good to see receivable quality good

[cerrito] 05/8/2021 21:12

Alleluia, EAH had its first up day since the results release