Hutchmed (china) Share Discussion Threads

[share_shark] 10/12/2010 13:45

CATEGORY: BROKER RECOMMENDATIONS SECTOR: GAS, WATER & MULTIUTILITIES
Broker tips: Centrica, Chi-Med, IG Group
Fri 10 Dec 2010

LONDON (SHARECAST) - Although estimates have been scaled back, Nomura retains its positive stance on Centrica as the company is best placed to benefit from the changes of the energy and home services industry.

The broker maintains that the utility group will be its top pick in 2011, as it will be able to adapt from UK supply being altered from a commoditised energy supply market to an energy and related home services market.

However, analyst John Musk notes that Centrica has been challenged by the current economic environment as it has faced aggressive price competition. Therefore, the broker now expects targets in home services to be reached one year later in 2013.

While its earnings per share forecasts have been trimmed by 2-4% for 2011, the broker says the "valuation still stacks up", as it continues to expect the group to deliver a growth rate of 10% in earnings per share over the next five years along with strong cash flows.

Despite forecasting a delay in growth, Nomura remains a 'buyer' of the stock, and confirms a target price of 395p.

Panmure Gordon is in favour of Hutchison China Meditech's (Chi-Med) increase in ownership of its subsidiary, and likes Chi-Med's location in a rapidly-growing market.

The China-based healthcare and consumer products group announced Friday that it has paid $2.7m to indirectly increase its holding effectively from 37.5% to 40% of its subsidiary Hutchison Baiyunshan (HBYS).

With the Chinese consumer healthcare market currently growing at more than 15%, robust growth is expected in the industry in the coming decade.

The broker says the current valuation of Chi-Med does not reflect the combined value of the company's business, re-iterating its 'buy' and price target of 600p.

While many of IG Group's markets have extended growth, finnCap thinks the key markets in terms of achieving earnings upgrades are Japan and the US.

The spread-betting company's pre-close revenue guidance released Thursday is line with the broker's expectations with UK revenue rising by 4%, Australia by 3.6% and Europe by 24%.

However, finnCap highlights that the group's operations in Japan "struggled with regulatory change and a goodwill impairment has become unavoidable."

Japanese revenues are now likely to run at one third of pre-acquisition levels, and the broker says that the goodwill element of the £117m acquisition of 87.5% of forex trading and CFD provider FXOnline "needs to be reviewed."

Additionally, following the regulatory approval for US retail-orientated exchange Nadex, analyst Duncan Hall says the next 12 months therefore "become important as to the rate of uptake but IG is confident that its products are attractive relative to over-the-counter FX trading".

The broker retains its target price of 520p "leaving the shares a 'hold' at current levels, pending US progress for 2012".

[share_shark] 10/12/2010 13:39

This is a nice article.I am beginning to like the look of this company more and more.



Broker snap: China the place to be for Chi-Med
Fri 10 Dec 2010

HCM - Hutchison China Meditech Ltd.

Latest Prices
Name Price %
Hutchison China Meditech Ltd. 500.00p 0.00%

Pharmaceuticals & Biotechnology 8,898 -0.12%

LONDON (SHARECAST) - Panmure Gordon is attracted to Hutchison China Meditech's (Chi-Med) increase in ownership of its subsidiary and its location in a rapidly-growing market.

The China-based healthcare and consumer products group announced Friday that it has paid $2.7m to indirectly increase its holding effectively from 37.5% to 40% of its subsidiary Hutchison Baiyunshan (HBYS).

HBYS is engaged in the manufacture and sale of over-the-counter traditional Chinese medicines and in 2009 it recorded revenue and net profits of $67.8m and $7.4m respectively.

The broker expects HBYS's revenues to grow to $83.3m in fiscal year 2010 while net profit will remain broadly flat at $7m.

Additionally, with the Chinese consumer healthcare market currently growing at more than 15%, robust growth is expected in the industry in the coming decade.

The broker says the current valuation of Chi-Med does not reflect the combined value of the company's business, re-iterating its 'buy' and price target of 600p.

[share_shark] 10/12/2010 08:26

Amazing. Just look at that growth !.

Will this be included in SCSW portfolia

[share_shark] 10/12/2010 08:24

No one notice the RNS ?>


Hutchison China MediTech Limited ("Chi-Med")
(AIM: HCM)


China Healthcare Division
Chi-Med increases indirect ownership of its Hutchison Baiyunshan joint venture


London: Friday, 10 December 2010: Chi-Med, the pharmaceutical and healthcare
company based primarily in China, today announces the intended indirect increase
in its ownership of Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine
Company Limited ("HBYS"), one of the companies which comprise Chi-Med's China
Healthcare Division.
HBYS primarily engages in the manufacture and sale of over-the-counter
traditional Chinese medicines. Chi-Med's wholly-owned subsidiary, Hutchison
Chinese Medicine Holding Limited, has entered into agreements with Bestchosen
Limited ("Bestchosen"), Dian Son Development Limited and Hutchison BYS
(Guangzhou) Holding Limited ("HGHL"), to increase its equity interest in HGHL
from 75% to 80%, for a total cash consideration of approximately US$2.7 million.
HGHL currently indirectly holds 50% interest in HBYS.

Since its first full year in 2006, HGHL has recorded compound average annual
sales growth of 25% as a result of growth in HBYS antiviral drug sales driven by
the severe flu seasons in China in recent years. The sales and net profits of
HGHL in 2009 were US$67.8 million and $7.4 million respectively.

Bestchosen was a 25% shareholder of HGHL and was a related party to Chi-Med
under Rule 13 of the AIM Rules for Companies and accordingly, where the
transactions with Bestchosen contemplated in one of the above agreements
constituted related party transactions for the purposes of AIM Rule 13.
Chi-Med's directors consider, having consulted with Chi-Med's nominated adviser
that the terms of the transactions with Bestchosen are fair and reasonable
insofar as Chi-Med's shareholders are concerned.

[share_shark] 09/12/2010 09:12

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by Matthew Goodburn on Dec 09, 2010 at 07:30

Slater Investments' chief investment officer Mark Slater has outperformed strongly over the last year on the MFM Slater Growth fund, posting a return of 82.66% in the year to the end of October, compared to 17.6% by the FTSE All Share over the same period.

The 28 stock £18 million fund was an institutional fund until November 2009 when it was refocused to invest purely on growth stock investing, selling any special sits and market cap limits were removed. Slater and his colleagues are the largest single investors in this fund, and the MFM Slater Recovery fund.

Slater told Citywire: 'Our key focus is on businesses which can do well in an ongoing tough market environment. We want businesses in niche areas or in growing markets. In 2008 the world changed [for small and mid caps on liquidity issues] and it made us much more aggressive about avoiding potential problems.

Hutchison China MediTech
Hutchison China MediTech is the largest single stock in the fund, at around 7.5%. Slater bought the Aim-listed stock at between £1.80 and £1.90 and continued buying on the way up. It is currently trading around £4.60.

Slater told Citywire: 'We were initially attracted because it had strong net cash and was well positioned in the highly profitable Chinese healthcare market. It sells a mix of market leading traditional and prescription medicines all with patent protection.'

Hutchison has a strong brand in China which makes it a trusted choice, especially as the country has huge issues with counterfeit goods. 'We were buying it on 12 times earnings so it looked very cheap compared to its pharma and healthcare peers.'

It also owns a leading research and development biotech business which Slater says would be hard to replicate, and which it is in the process of selling off, as well as a consumer facing organic business, which Slater believes has the potential for the strongest growth. Having already done a deal to distribute its goods through its parent group in Hong Kong- which has 8,000 stores around the world- it has also signed a contract to sell through a US distributor.

'It is normally a 100% premium on organic goods, but they are delivering them with just a 10% mark up,' he added.

Slater also expects it to profit from its brand leading baby milk in China-a country regularly rocked by milk contamination scandals. 'You are paying 12 times earnings for a stock showing 20-30% growth per annum with good earnings visibility. Shares have been re-rated strongly and it is on a multiple of mid-20s just for the core business alone.'

'It is relatively obscure so not well covered, because it is Cayman Island - domiciled and because the biotech business loses money, obscuring the otherwise strong growth. That business will have been spun off within the next 18 months too.'

Cape
Cape makes up some 7% of the

[gucci] 09/12/2010 08:33

wish i'd added
but happy with what I hold
scsw update this weekend????

[ddav] 08/12/2010 16:51

dnfa1975 -- Time you flu off!!

[ddav] 08/12/2010 16:49

ss --- Excellent info -- Our company has a very big manufacturing capability in quality infant milk products!

[bongo bwana] 08/12/2010 15:37

Oh shi€ Ur here as well LOL

[dnfa1975] 08/12/2010 15:32

rising snake like , 1 billion chinese catch a cold and this will go mental

[ddav] 01/12/2010 16:03

what ails this????
is it Kim?

[gucci] 01/12/2010 15:46

reckon we'll probably see 400p here

[share_shark] 27/11/2010 10:56

Ur ah,i's be 94 and three quarters now,gucci lass !.

[gucci] 26/11/2010 21:57

Thanks SS

surely girlie you haven't a son old enough to have a holding!

[share_shark] 26/11/2010 09:20

This will cheer you gucci.

Looks very much to me as I am the biggest plonker on nthe planet by far !.

[share_shark] 25/11/2010 18:16

Ah I am, gucci,with the exception of AVN and a couple of holdings where the share price is so low,I am framing the certs!.

I have POA on my sons holdings though but when there is a good profit there I will, exit the market.

Will leave it all to you young whipper snappers and beautiful people. Good luck gucci girl.

[share_shark] 25/11/2010 09:31

Where is that clever girl gucci...?.

Unlike me !.

[gucci] 24/11/2010 09:03

had a lie in ss

Its blue!!

[share_shark] 24/11/2010 08:52

Where is that high maintenace woman ?.

Its blue gucci .