Guangdong Xinhui Meida Nylon Co., Ltd.

  (Public, SHE:000782)

Company’s Fact

GXMN was established in 1984, it is the first Polyamide 6 producer in China armed with the advanced level Nylon-6 production technology. With years of research and development, the company has set up an infrastructure specializing in polyamide 6 chips and vertically integrating spinning, knitting and dyeing. GXMN was listed on the Shenzhen Stock Exchange in 1997, becoming the first listed company in the Polyamide 6 industry in China. It was among the top 10 in the textile industry of China and the top 50 most competitive in the chemical fiber sector of the Chinese textile industry. Besides, it was also listed among the 500 key enterprises of China and 50 leading industrial enterprises of Guangdong Province. It was awarded as an AAA+ National Quality to Credited Enterprise.

Today, the company has over 3,500 employees and workers, and more than RMB 2 billion total assets. The annual capacity reaches 180,000 tons of Polyamide 6 chips, 70,000 tons of filament yarns and 4,800 tons of high-end fabric, yielding an annual output value of over RMB3 billion.

GXMN is focusing on quality and innovation. It passed the ISO9001 quality system certification in 1998. Its “Jinfan” brand Polyamide 6 multi-filament was awarded the National Excellent Quality Silver Prize, and the chips and filament of the same brand have become the favorite products of both overseas and domestic customers due to their excellent performance and top quality. GXMN has established a provincial-level technical center and a post-doctoral scientific research center, with many senior professionals and talents of the industry. The setup of these R&D centers has facilitated continuous technical advancements and innovations. With many product patents that reached world level, the company has been certified as the Hi-tech Enterprise and Technical Innovation Enterprise of Guangdong Province.

Besides Xinhui base, GXMN also has three subsidiaries; they are Sichuan Nanchong Meihua, Hunan Changde Meihua and Heshan Meihua. At present, Meida is the largest Nylon manufactory base in China. In 2007, the Company's products were distributed within the domestic market and to overseas markets.

Financial Overview

3.96
+0.16 (4.21%)
Jul 3 - Close    

Open:  3.78      Mkt Cap:  1.60B      P/E:  42.17      Dividend:      -    

High:  4.07      52Wk High:  8.14      F P/E:      -      Yield:      -    

Low:  3.70     52Wk Low:  3.66     Beta:      -      Shares:  404.51M  

Vol:  5.39M      Avg Vol:      -      EPS:  0.09      Inst. Own:      -

Key Stats & Ratios

Date                Open High   Low     Close Volume

2-Jul-08         3.79    3.87    3.73    3.80    1,952,206

1-Jul-08         3.97    3.97    3.72    3.78    1,935,001

30-Jun-08      3.81    3.92    3.77    3.91    2,035,200

27-Jun-08      3.96    4.03    3.76    3.85    4,080,793

26-Jun-08      4.15    4.18    4.04    4.14    5,391,706

25-Jun-08      3.95    4.14    3.95    4.14    6,301,597

24-Jun-08      3.70    3.93    3.69    3.90    3,302,964

23-Jun-08      3.80    3.85    3.66    3.73    2,850,140

19-Jun-08      4.10    4.10    3.70    3.70    4,621,224

18-Jun-08      3.90    4.16    3.76    4.11    5,490,578

17-Jun-08      4.23    4.35    3.85    3.92    4,369,677

16-Jun-08      4.35    4.40    4.18    4.26    3,113,965

13-Jun-08      4.62    4.71    4.30    4.32    3,520,318

12-Jun-08      4.63    4.74    4.50    4.59    3,693,998

11-Jun-08      4.81    4.90    4.60    4.67    5,590,061

10-Jun-08      5.36    5.36    4.91    4.91    5,348,051

6-Jun-08        5.46    5.59    5.35    5.46    4,620,982

5-Jun-08        5.50    5.54    5.28    5.35    5,108,797

4-Jun-08        5.81    5.81    5.35    5.48    7,108,878

3-Jun-08        6.07    6.12    5.77    5.79    9,113,276

2-Jun-08        6.18    6.27    5.97    6.08    8,004,460

30-May-08     5.90    6.15    5.90    6.10    7,246,914

29-May-08     6.12    6.18    5.89    5.97    7,802,118

28-May-08     5.75    6.15    5.71    6.06    7,514,299

27-May-08     5.87    5.95    5.63    5.72    5,896,552

The earnings results for the year 2007, the company reported net profit attributable to group was CNY 37.5665 million or CNY 0.09 per share on operating turnover of CNY 2,715.7216 million against net profit attributable to group was CNY 34.0855 million or CNY 0.08 per share on operating turnover of CNY 2,435.3596 million reported for the same period a year ago. The company also plans to pay a dividend of CNY 0.047 per share for the year 2007. Every year, GXMN has been able to grow revenues from CNY 2.4 billion to CNY 2.7 billion. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 4.88% to 4.30%. This was a driver that led to a bottom line growth from CNY 34.1million to CNY 37.6 million.

GXMN has an annual output of 100,000 tons of Polyamide 6, 70,000 tons of filament, total value 3 billion yuan for annual output, its technical and management level are the highest in the country. Investors should notice that GXMN recent expansion with the new concept of environmental protection is currently under construction and when the project is put into operation, the new output value of 1.6 billion yuan will be added, Polyamide 6 production capacity will reach 180,000 tons also per year.

GXMN has introduced the green recycling production line. Through technical research to improve, it recycles all the raw materials from the original waste for plastics engineering, 100% utilize the raw materials.

In addition, the GXMN’s environmental theme of "Plastic Limitation" has been receiving growth opportunities. Since June 1, the new regulation of the national plastic limitation is implemented, all regions are seriously looking into this scheme. To GXMN whose main production of environmentally friendly bags of raw materials, this has brought the long-term prospect to them. The green shopping bags on demand can reach up to 10 billion in a year, it’s a sudden increase of 100 billion in the industry output, and there are unlimited business opportunities. Environmental friendly shopping bags are made of non-woven and nylon cloth. GXMN as the China's largest nylon manufacturer is facing an unprecedented business opportunity.

Plastic bags will be replaced by non-woven environment friendly bags and nylon bags. The raw material of plastic bag is Polyethylene, whereas the raw material for non-woven bag is polypropylene. Polyethylene is very difficult to be disposed due to the strong chemical structure; the chemical structure of polypropylene is not strong, thus it can be disposed effectively. A non-woven bag, within 90 days, it can be completely decomposed. A light, waterproof, durable and non-woven bag costs between 5 to 10 yuan, the domestic demand will reach 10 billion pieces or more annually. If taking the global procurement in China into the account, the annual output value will be very substantial!