Establishment Investment Share Discussion Threads

[greek islander] 08/4/2008 16:32

Another buy today but failed to move the share price
It's all gone very quiet - we need some news

[papalpower] 05/4/2008 02:14

General China stuff.

These from the official mouthpieces of the Communist Party, so should be taken as "official".

I do wonder if some people in the West have forgotten just how damaging inflation is.......and how long it stays with you.....and how hard it is to fight it........





ICBC says China inflation rate to hit 8% in Q1

April 04, 2008

The Industrial and Commercial Bank of China (ICBC) is forecasting an 8 percent increase in the country's Consumer Price Index (CPI) for the first quarter of 2008. The official government figures come out in mid-April.

The bank said in a report issued on Thursday that the CPI would hit 8.2 percent in March, sl.......................


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Statistician: China risking overall inflation
By Tu Lei (chinadaily.com.cn)

Updated: 2008-04-03 15:47

China faces overheating of its fast-growing economy, as price rises could turn into overall inflation from core inflation, said Xie Fuzhan, lead economist with the National Bureau of Statistics.

To tape the inflation, Xie said, the government should strictly curb investments and proje............................


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This from CNN on the Yuan :

Worth a read :



Rising yuan crunches outsourcers' bottom line

China's currency is hitting record highs against the U.S. dollar - a problem for apparel companies and others that rely on low-cost Chinese manufacturing.

Last Updated: April 3, 2008: 11:03 AM EDT

(FORTUNE Small Business) -- The Chinese yuan reached a record high against the dollar last week, the latest in a series of sharp rises that are changin............................

[papalpower] 05/4/2008 01:45

Where does it go from here ? If it does nothing between now and May, I'd expect it to start to dribble back down again, as before perhaps.

[greek islander] 04/4/2008 12:45

Seymour Pierce - thanks to Rivaldo

Companies: CHNS ETC GNG

01/04/2008

Small-cap specialist Seymour Pierce has issued a note urging investors to consider revisiting companies from the People's Republic of China. 'We think there is a realistic prospect that China will not only revalue its currency this year but may continue to do so over the next few years...[and] in the event that we are right, many of AIM's Chinese companies ought to be beneficiaries,' says Seymour Pierce, adding that 'a stronger yuan will bolster UK sterling-translated profits'.

Stock selections include industrial battery manufacturer China Shoto (see page 8), £38 million travel agent ET-China and £15.6 million software provider Geong International. China Shoto 'is now a major industrial concern with a very strong position' and its high growth rates are expected to continue in 2008 and beyond. 'The rating of the group is at a substantial discount to Western industrial businesses, which are likely to find such high growth rates harder to come by.'

With all divisions showing strong growth, ET-China is 'on schedule to meet our net profit target of £1.1 million for the financial year 2008' and may even surpass that forecast thanks to significant marketing spend this year.

A platform for growth

As for Geong, it 'has the platform to sustain steady organic growth of at least 40 per cent at a 40 per cent gross margin for the foreseeable future. But it also has substantial capacity and resources to surpass that growth level with judicious and earnings-enhancing acquisitions.' Geong's products are now available in English and, having inked agreements in Canada and the US, further growth is likely to ensue."

[papalpower] 04/4/2008 03:01

Bit of interest of late might have come from what appears to be Seymour Pierce putting their earlier note out around the media circles......it appears to have been out on on GCI on 1st April.

Obviously looking to try and generate some interest, cannot fault Seymour for trying can you.





Seymour Pierce

Companies: CHNS ETC GNG

01/04/2008

Small-cap specialist Seymour Pierce has issued a note urging investors to consider revisiting companies from the People's Republic of China. 'We think there is a realistic prospect that China will not only revalue its currency this year but may continue to do so over the next few years...[and] in the event that we are right, many of AIM's Chinese companies ought to be beneficiaries,' says Seymour Pierce, adding that 'a stronger yuan will bolster UK sterling-translated profits'.

Stock selections include industrial battery manufacturer China Shoto (see page 8), £38 million travel agent ET-China and £15.6 million software provider Geong International. China Shoto 'is now a major industrial concern with a very strong position' and its high growth rates are expected to continue in 2008 and beyond. 'The rating of the group is at a substantial discount to Western industrial businesses, which are likely to find such high growth rates harder to come by.'

With all divisions showing strong growth, ET-China is 'on schedule to meet our net profit target of £1.1 million for the financial year 2008' and may even surpass that forecast thanks to significant marketing spend this year.

A platform for growth

As for Geong, it 'has the platform to sustain steady organic growth of at least 40 per cent at a 40 per cent gross margin for the foreseeable future. But it also has substantial capacity and resources to surpass that growth level with judicious and earnings-enhancing acquisitions.' Geong's products are now available in English and, having inked agreements in Canada and the US, further growth is likely to ensue.

[papalpower] 03/4/2008 11:05

Bit of interest today.

[greek islander] 28/3/2008 16:25

My heavens.

A veritable whirlwind of activity today.

[longshanks] 26/3/2008 10:52

....you could cut and paste what pp has put on the other thread.

[papalpower] 26/3/2008 01:16

The comment from Shares Magazine :

China will become the second largest economy for travel and tourism in 2008, generating around £592 billion. This is according to the World Travel & Tourism Council which estimates that Chinese travel will nearly quadruple in value to $2.4 trillion over the next ten years.

Adding to the strong domestic travel market will be a sharp rise in overseas visitors, attracted by China's economic strength, culture and expanding infrastructure. Travel services provider Et-china is well placed to benefit from this trend. The company, which is set to move into profit this year, is based in the south China province of Guangdong, relatively close to Hong Kong and Macau. South China accounts for around 30% of the country's GDP and houses
over 450 million people. Et-china is among the largest travel services
group in this region and caters for business and consumer travellers.

It has a wide distribution network, offering plane tickets and hotel reservations online, via a call centre, through payment kiosks and city offices. Et-china has an exclusive e-ticketing deal with China Southern Airlines, the country's largest carrier. An investment in government owned GZL is broadening exposure to group travel. It currently owns 53.95% of GZL,
which provides tour packages through 160 high street stores and a call centre. Et-china chief executive Matthew Ng says the company will seek to increase its holding further, although permitting the government to keep some exposure to the business. 'Having a shareholder partner like the government would be beneficial in terms of securing major events such as the coming Asian Games in 2010 in Guangzhou,' says Ng.

A more immediate driver for business is the Olympic games this summer in Beijing, although this may be a last-minute rush for domestic travellers. Ng reveals that preference over hotels and flight allocations are being given to overseas visitors. 'The Chinese people are concerned about a lack of transparency over hotel and air fares for the Olympics, as the prices keep changing. We should get a better idea by May, but come June or July there will certainly be rush among Chinese people for bookings,' he comments.

China has made significant investment into expanding air travel capacity. While Heathrow's Terminal 5 is currently dominating UK media, a more impressive facility is Terminal 3 at Hong Kong, which opened in February. It is 17% larger than all five of Heathrow's terminals combined. Regional hubs are also expanding including Guangzhou, where Et-china is based, only 90 minutes by train from Hong Kong but still requiring a second runway to support air travel demand. 'Within a 200 kilometre radius of Guangzhou, we have three airports which can handle over 80 million passengers a year and are close to capacity,' says Ng.

Competition is strong among Chinese travel operators but Etchina believes its focus on brand strength and service rather than pricing will stand it well. House broker Seymour Pierce believes the company will report £1.5 million pre-tax loss when 2007 accounts are published in late April or early May, reflecting high marketing costs. This should turn into £4.2 million profit for 2008 and £8.9 million gain the year after.

The shares in Et-china listed at 127p in August 2007 but quickly fell to 79.5p, dragged down by the wider stock market weakness. A trading update in October pushed the stock back up 57% over two days, but a lack of subsequent news left the shares drifting back downwards. Two trading statements in February revived the stock, resulting in a 66% rise to 127p. With the company having learned its lesson over the need to keep the City updated and shortterm
investors having since taken profits, the stock price should become less volatile. One to buy now and tuck away for several years.

[greek islander] 25/3/2008 22:33

Steg - far from deleting it please spread the word. Could do with more PIs taking notice.

[longshanks] 25/3/2008 19:09

A bit of editing required...steg.

[greek islander] 25/3/2008 19:09

Thanks Steg.
Very reassuring and summarising exactly my feeling about the stock.
I see big share price rises when the company announces its 2008 results and even bigger rises twelve months later when a more than 100% increase in profits is quite a reasonable expectation. Huge potential for serious multi bagging.
A rare opportunity to get in at the beginning of a huge company.
EDIT Steg are you back in yet?

[stegrego] 25/3/2008 18:07

This was tipped in Shares mag last week as Play of the Week

China will become the second
largest economy for travel and
tourism in 2008, generating
around £592 billion. This is
according to the World Travel &
Tourism Council which estimates
that Chinese travel will nearly
quadruple in value to $2.4 trillion
over the next ten years.
Adding to the strong domestic
travel market will be a sharp rise in
overseas visitors, attracted by
China's economic strength, culture
and expanding infrastructure.
Travel services provider Et-china
is well placed to benefit from this
trend. The company, which is set
to move into profit this year, is
based in the south China province
of Guangdong, relatively close to
Hong Kong and Macau. South
China accounts for around 30% of
the country's GDP and houses
over 450 million people. Et-china is
among the largest travel services
group in this region and caters for
business and consumer travellers.
It has a wide distribution
network, offering plane tickets and
hotel reservations online, via a call
centre, through payment kiosks
and city offices. Et-china has an
exclusive e-ticketing deal with
China Southern Airlines, the
country's largest carrier.
An investment in governmentowned
GZL is broadening
exposure to group travel. It
currently owns 53.95% of GZL,
which provides tour packages
through 160 high street stores and
a call centre. Et-china chief
executive Matthew Ng says the
company will seek to increase its
holding further, although
permitting the government to
keep some exposure to the
business. 'Having a shareholder
partner like the government
would be beneficial in terms of
securing major events such as the
coming Asian Games in 2010 in
Guangzhou,' says Ng.
A more immediate driver for
business is the Olympic games
this summer in Beijing, although
this may be a last-minute rush for
domestic travellers. Ng reveals that
preference over hotels and flight
allocations are being given to
overseas visitors. 'The Chinese
people are concerned about a lack
of transparency over hotel and air
fares for the Olympics, as the
prices keep changing. We should
get a better idea by May, but come
June or July there will certainly be
rush among Chinese people for
bookings,' he comments.
China has made significant
investment into expanding air
travel capacity. While Heathrow's
Terminal 5 is currently dominating
UK media, a more impressive
facility is Terminal 3 at Hong Kong,
which opened in February. It is 17%
larger than all five of Heathrow's
terminals combined. Regional
hubs are also expanding including
Guangzhou, where Et-china is
based, only 90 minutes by train
from Hong Kong but still requiring
a second runway to support air
travel demand. 'Within a 200
kilometre radius of Guangzhou,
we have three airports which can
handle over 80 million passengers
a year and are close to capacity,'
says Ng.
Competition is strong among
Chinese travel operators but Etchina
believes its focus on brand
strength and service rather than
pricing will stand it well. House
broker Seymour Pierce believes the
company will report £1.5 million
pre-tax loss when 2007 accounts
are published in late April or early
May, reflecting high marketing
costs. This should turn into £4.2
million profit for 2008 and £8.9
million gain the year after.
The shares in Et-china listed at
127p in August 2007 but quickly fell
to 79.5p, dragged down by the
wider stock market weakness. A
trading update in October pushed
the stock back up 57% over two
days, but a lack of subsequent
news left the shares drifting back
downwards. Two trading
statements in February revived the
stock, resulting in a 66% rise to
127p. With the company having
learned its lesson over the need to
keep the City updated and shortterm
investors having since taken
profits, the stock price should
become less volatile. One to buy
now and tuck away for several
years.

[greek islander] 25/3/2008 09:26

Noticed a small buy today. It wouldn't take much to start the ball rolling again. Am considering another foray. Looking at either topping up in GNG or in ECT. Will hold my hand for the moment.

[papalpower] 25/3/2008 01:34

The attached PDF mentions ETC, download it from the web folder on the link. Its from Seymours.



(SeymourMarch2008..)

.

[greek islander] 24/3/2008 14:09

ETC
I am going to get a quote from their travel agency for a forthcoming trip to China. Should be interesting.

[papalpower] 23/3/2008 14:19

One of the concerns for any China based company (or one that relies on China manufacturing to some extent) is the fact that Chinese inflation is rampant, and costs are rising very fast, not only your standard items affected by day to day inflation, but very fast rising labour costs to as wages rise and demands for higher wages gains momentum.

Inflation in China could be a detrimental point to performance on many companies, whether that is minimal or signficiant will be on a case by case basis, only possible to be seen as interims and prelims keep coming through.

Always worth considering, and not just ignore it, it has the potential to cause some upsets.....maybe not this stock though, who knows.




China Moves to Stem Inflation and Calm Investors

By DAVID BARBOZA

Published: March 19, 2008

SHANGHAI - Stock prices plummeted in China on Tuesday over inflation fears and growing concerns about the ripple effects of an economic slowdown in the United States. Showing its determination to hold down prices, the Chinese central bank then moved to tighten lending.

Shares on the Shanghai Stock Exchange tumbled nearly 4 percent, with the composite index ending at 3,668.90. The index is down nearly 40 percent from its record high last October. The fall in the Shenzhen composite index was even steeper Tuesday - off 6.6 percent, to close at 1,082.28.

Shares appeared to be recovering somewhat in early trading on Wednesday, after the United States central bank cut interest rates in a bid to rekindle growth.

In Hong Kong, shares rose on Tuesday by 1.42 percent. Other Asian markets, including Japan, Taiwan, South Korea, India and Indonesia, also rebounded modestly after a sharp sell-off Monday. Some of those markets appeared to be extending those gains on Wednesday.

The Tuesday sell-off in China came after Prime Minister Wen Jiabao said at a televised news conference on Tuesday morning that inflation this year would probably exceed the government's target of 4.8 percent, after a sharp rise last year. Continuing inflation is regarded as a sign that the Chinese economy may be overheating.

Officials in Beijing now say that fighting inflation is the government's top priority. That could mean raising interest rates, a step that often.....................

[stegrego] 23/3/2008 14:07

Im perfectly happy actually, am quite enjoying this phase as a buying opp.

Just warning people not to fall for your BS.

In fact the only thing that is bothering me is you PP!!

[papalpower] 23/3/2008 13:22

Et-china.com raises stake in GZL to 53.95 pct via share swap with GZL execs
03.10.08, 4:22 AM ET

LONDON (Thomson Financial) - Et-china.com International Holdings Ltd said it has increased its stake in its tour operations division GZL to 53.95 pct through a share swap with five senior GZL executives.

The travel services group said the GZL executives, including chairman and president Hong Zheng, are exchanging their entire shareholdings worth 10.76 yuan, or 755,384 stg, for 78 pct in Et-china shares and the balance in cash. Their holdings in the company will be subjected to staged lock-in agreements.

Et-china.com said it will issue 667,550 new ordinary shares and 2.32 mln yuan, or 163,085 stg, in cash to fund the stake acquisition.

[greek islander] 23/3/2008 13:13

Steg
I guess people new to ADVFN might not realise what a huge hassle PP is on these BBs

[papalpower] 21/3/2008 11:00

However, a bit of exposure from Shares Mag might attract a little short term money into things and perhaps a sprinkling of longer term funds. You never know in todays market.