Fingad.com

Anshan Steel Co. Ltd. - Reformed With Another Giant Benxi Steel & Iron Group Corporation

Fri, 15 Aug 2008 08:26:39 EST

Anshan Steel Co. Ltd. - Reformed With Another Giant Benxi Steel & Iron Group Corporation - by liz

Anshan Steel Co. Ltd.

Public (SZ: 000898)

Company Facts

Anshan Steel Co. Ltd. is mainly involved in the smelting of the black metal and steel press forging. The company was known as Anshan Steel Group Corporation, which was the Chinese first steel & iron manufacturing enterprise that was set up in December 1948 (People’s Republic of China was established in year 1949). Approved by National System Reform Committee, the company was established on May 1997 and got listed in Shenzhen Stock Exchange in the same year.

Thanks for the steel price appreciation and product structure’s perfection, in the first half of year 2008, the company has achieved business income and net profit margin of RMB 40.17 billion Yuan and RMB 5.98 billion Yuan separately, which made 22.7% and 23.6% increase corresponding the same period of previous year.

The company targets high-end special steel manufacture such as container board, pipe board, ship board, vehicle board, home applicant board, petrol pipe board and weathering steel, about 92% of its products are special steels which has are able secure the profit margins on a relatively high level. The company has become the largest supplier for ship board and pipe steel segments in China. Moreover, the company’s research & development has leading advantages internationally. Thus, the products of the company have been widely used in more than 20 large-scaled important national pipe engineering projects.

Recently, the company has been exclusively selected as the supplier of 600,000 tons of bullet train’s steel-track for Zhengxi Railway construction project, which is the monument in Chinese railway history as the speed of the bullet train is going to be 350 km/hr. The project has brought stable business for the company at the moment for sure, more importantly, it allows the company to step its footprints into 100-meter high-speed steel track production and tightly grasp the opportunity of the national-wide bullet train network construction and enjoy the expectant long term benefits.

Financial Review:

Related Companies:

-- Collaboration:

Ansc-Tks Galvanizing Co. Ltd.

Ansc – Dachuan Heavy Industry Dalian Steel Processing & Distribution Co. Ltd.

Changchun FAM-Anjing Steel Processing & Distribution Co. Ltd.

Ansc-Tks Steel Distribution (Changchun) Co. Ltd.

Ansc Shenyang Steel Processing & Distribution Co. Ltd.

Tks-Ansc (Changchun) Laser tailor welded blanks Co. Ltd.

Ansc Industry Group Packing Steel Strip Co. Ltd.

-- Holding Company

Anshan Steel & Iron Group Corporation. Percentage of rights and interests: 67.28%

-- Subsidiaries:

Ansc Steel Distribution (Wuhan) Co. Ltd.

-- Invested by same holding company:

Anshan Steel & Iron Group Corporation International Economical & Trading Co. Ltd.

Anshan Steel & Iron Group Corporation Institute of Designing

Anshan Steel & Iron Group Corporation Machinery Loading Co. Ltd.

Anshan Steel & Iron Group Corporation Real Estate Development Group Co. Ltd.

Anshan Steel & Iron Electronics Liability Company

Anshan Steel & Iron Group Corporation Fire-resistant Material Company

Anshan Steel & Iron Vehicle Transportation Limited Liability Company

Anshan Steel & Iron Group Corporation Railway Transportation Equipment Manufacture Company

Anshan Steel & Iron Group Corporation Hospitality Service Company

Anshan Steel & Iron Group Corporation Automation Company

Dalian Huayelian Automation Company

Anshan Steel & Iron Group Corporation Financial Co. Ltd.

Anshan Steel & Iron Group Corporation Steel Rope Limited Liability Company

Anshan Steel & Iron Group Corporation Real Estate Company

Anshan Steel & Iron Group Corporation Mining Company

Anshan Steel & Iron Group Corporation Railway Construction Company

Anshan Steel & Iron Industry Group Co. Ltd.

Anshan Steel & Iron Construction Group Co. Ltd.

Anshan Steel & Iron Heavy Machinery Limited Liability Company

Stock Health:

As on 13 August, 2008

Open: 9.90 High: 10.35 Low: 9.50 Close: 10.23 Vol.: 11,298,650

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	30 June, 2008	2007	2006	2005
Main business income	4016800.00	6549900.00	5433000.00	2648811.50｜
Profit margin	752500.00	1037300.00	938100.00	298200.00
Net Profit margin	598000.00	752500.00	700300.00	207948.50
Profit Ratio %	10.66	13.87	23.25	18.35

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-14	10.18	10.33	10.00	10.13	8,345,540
2008-08-13	10.13	10.42	9.88	10.30	14,645,483
2008-08-12	9.90	10.37	9.81	10.29	23,080,617
2008-08-11	10.04	10.20	9.62	9.80	17,140,389
2008-08-08	10.70	10.74	10.01	10.06	18,099,088
2008-08-07	10.76	11.00	10.52	10.70	15,394,550
2008-08-06	10.96	11.11	10.57	10.76	16,651,366
2008-08-05	11.63	11.88	10.70	10.85	38,075,560
2008-08-04	12.33	12.33	11.70	11.81	17,327,890
2008-08-01	12.30	12.58	12.02	12.46	14,913,417
2008-07-31	13.09	13.09	12.48	12.50	11,268,192
2008-07-30	13.17	13.22	12.70	12.97	21,259,114
2008-07-29	13.16	13.16	12.60	12.86	22,046,673
2008-07-28	13.44	13.66	13.30	13.39	10,830,000
2008-07-25	13.50	13.59	13.19	13.29	17,970,752
2008-07-24	13.40	13.84	13.31	13.70	22,428,371
2008-07-23	13.46	13.63	13.20	13.24	18,576,522
2008-07-22	13.29	13.45	13.15	13.29	10,682,620
2008-07-21	12.73	13.55	12.59	13.35	18,312,411
2008-07-18	12.78	12.98	12.34	12.78	15,670,515
2008-07-17	12.91	12.99	12.38	12.42	15,912,668
2008-07-16	13.10	13.14	12.34	12.67	22,941,528
2008-07-15	14.06	14.19	13.19	13.32	24,027,146
2008-07-14	13.56	14.05	13.56	14.03	14,152,962
2008-07-11	13.95	14.05	13.41	13.74	22,693,384

Performance Analysis

The location of the company has played an significant role in the performance of the company. As the company is located in Anshan, Liaoning Province. The very nature of the geographic location has decided that only road transportation is available for transporting its imported raw materials from the close-by harbors and delivering steel products to its customers in country-wide and world-wide, which has become the bottleneck for the fast growth of the company. Therefore, the company has invested heavily in the Bayuquan Project, which is the largest in scale steel manufacture site in China that is connected with Bayuquan Harbor (Yingkou City, Liaoning Province), railways and national express ways.

The project is expected to be finished and start its operation within August 2008. Thereafter, the productivity of the company will increase by 31% and reach 21 million tons per year as well as able to transport its products to more than 100 ports and over 40 countries as well as to countrywide locations via railway or road transportation. Investors are suggested to pay attention to the progress of the project, as it is assumed that the project will start bringing profits in year 2009.

In my opinion, the recent slump of the stock price reflects the market worries towards sluggish demand in down-stream industries such as the realty and automotive industries. It is to some extent will affect the performance of steel & iron industry; however, the net profit margin of the company will not be affected as much as the market’s assumed while the price increase of the raw material costs are relatively less than the steel products’ price growth.

Importantly, the parent company of Anshan Steel Co. Ltd., Anshan Steel & Iron Group Corporation has reformed with another Chinese steel & iron giant – Benxi Steel & Iron Group Corporation. The strategic movement has not only effectively reduced price competition between two giants, but will reduce the costs in raw material consumption. As 80% of the steel mines are supplied by the parent company, Anshan Steel Co. Ltd. will gain more competitive advantages through the low costs of supplies.

Personally, I would like to suggest this stock to investors, especially, I am positive about middle term investment returns. For long term investment, there are some factors of concern, such as increase in fuel price that has put immense pressure on the company’s manufacturing costs, as well as the government’s policies that tightening up the exporting of steel & iron. To conclude, I believe that investors are likely to gain fruitful if they pay attention to the above mentioned factors and adjust their investment decisions accordingly.

Beijing Gehua CATV Network Co. Ltd. - Exclusive Live Cable TV Operator For The 2008 Olympic Games

Thu, 14 Aug 2008 09:34:29 EST

Beijing Gehua CATV Network Co. Ltd. - Exclusive Live Cable TV Operator For The 2008 Olympic Games - by liz

Beijing Gehua CATV Network Co. Ltd.

Public (SHA: 600037)

Company Facts:

Beijing Gehua CATV Network Co, Ltd. was initiated by Beijing Gehua Culture Development Group, Beijing Youth Newspaper Corporation, Beijing Cable TV Shopping Limited Liability Company, Beijing Broadcasting Development Corporation and Beijing Publishing House in year 1999. The company’s main business focus include construction & development of broadcasting and TV network, receiving and transferring broadcast & TV programme and broadcasting &TV network information services.

The company was exclusively approved by the government of Beijing is in charge of the construction, management and operation of cable TV network for the capital city of China. The company has 3.44 million analog TV customers and 1.9 million digital TV customers. Moreover, the company has moved forward its footprints into digital TV fields by building up strategic alliance with ‘Hair’ in manufacturing digital TV’s top-box business; shareholding digital TV technological companies such as Zhuozhuang Network Co. Ltd.

Financial Review:

Related Companies:

-- Shareholding Company:

Beijing Beiguang Media Digital TV Co. Ltd.

Beijing Shuimu Sunny Media Technology Co. Ltd.

Beijing Zhongguang Net-Media Information Consultant Co. Ltd.

Beijing Beiguang Media & Film Co. Ltd.

Beijing Digital Visual Technology Co. Ltd.

Shenzhen Zhuozhuang Network Technology Co. Ltd.

Beijing Beiguang Media Mobile TV Co. Ltd.

Beijing Jingshi Media Limited Liability Company

-- Holding Company:

Beijing Beiguang Media Investment Development Centre

-- Subsidiaries:

Beijing Shikuan Xinchuang Cable Information Engineering Limited Liability Company

Beijing Gehua Cable Digital Media Co. Ltd.

Zhuozhou Gehua Cable TV Network Co. Ltd.

-- Actual Controller:

Beijing Beiguang Media Group Co. Ltd.

-- Invested by same holding company:

Beijing Guangmei Real Estate Development Co. Ltd.

-- Ultimate Controller:

Government of Beijing

Stock Health:

As on 13 August, 2008

Open: 9.90 High: 10.35 Low: 9.50 Close: 10.23 Vol.: 11,298,650

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1st quarter of 2008	2007	2006	2005
Main business income	25061.82	118491.57	104584.85	89478.14
Profit margin	5709.18	36886.25	34741.74	32190.56
Net Profit margin	5709.30	36682.19	43271.61	27047.10
Profit Ratio %	1.42	9.24	11.80	10.80

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-13	9.90	10.35	9.50	10.23	11,298,650
2008-08-12	9.90	10.65	9.87	10.01	17,532,870
2008-08-11	11.80	11.80	10.97	10.97	11,011,050
2008-08-08	13.57	14.15	12.16	12.19	20,324,800
2008-08-07	12.60	13.60	12.52	13.51	9,166,210
2008-08-06	12.85	12.87	12.15	12.53	6,103,580
2008-08-05	13.30	13.35	12.47	12.51	6,796,070
2008-08-04	13.47	13.70	13.19	13.24	8,199,110
2008-08-01	12.76	13.59	12.51	13.45	10,392,180
2008-07-31	13.71	13.85	12.81	12.84	11,346,030
2008-07-30	14.02	14.18	13.49	13.66	7,079,080
2008-07-29	14.48	14.48	13.73	13.79	11,830,260
2008-07-28	14.66	15.15	14.41	14.56	11,103,830
2008-07-25	14.38	14.80	14.22	14.61	11,978,130
2008-07-24	14.04	14.68	13.95	14.57	16,361,910
2008-07-23	14.13	14.26	13.88	13.94	7,983,350
2008-07-22	14.00	14.47	13.81	13.99	10,768,480
2008-07-21	13.21	14.14	13.01	13.99	13,864,120
2008-07-18	13.18	13.50	12.44	13.28	16,491,460
2008-07-17	14.15	14.41	13.01	13.06	16,694,440
2008-07-16	14.70	15.19	13.80	14.01	14,993,770
2008-07-15	15.35	15.80	14.50	15.21	25,714,310
2008-07-14	14.05	15.67	14.01	15.35	26,040,560
2008-07-11	14.66	15.08	14.00	14.37	18,682,590
2008-07-10	15.52	15.98	14.90	14.94	22,053,430

Performance Analysis:

The digital TV business is emerging industry in China (mainland) which has relatively less competition; as well as it has great potential in the future along with considerable profit margin. The company aims to build up a digital industrial chain by tracing up-stream and down-stream in related businesses, such as manufacture of digital TV top-box and providing maintenance services for the digital TV network as well as product sales and development.

The company is referred as to the exclusive live cable TV operator for the 2008 Olympic Games. In my opinion, in short term, the profit return is barely seen comparing with the huge amount investment in order to fulfilled the Olympic mission, however, in long term company could see good returns if they accomplish the task successfully, it will improve the world-wide brand reorganization, which will come hand in hand with international investments and opportunities of co-operation, as well as more support from the government policies. Therefore, I would like to suggest investors to pay attention to this stock in middle and long terms.

Personally, I believe that, currently, the digital TV business in China is an industry that has high profit returns but also accompanied by high risks, like any other business. As the market is yet to mature, competition is relatively less fierce, especially, it is monopoly business which is initiated and financially supported in network construction by the government with objectives to improve the public living standard, the profit margin of the industry is considerably high.

However, the fee policy of digital market is set up by the government and there are immense pressure upon raising the service charge by the company; that means, although RMB 18 Yuan per month’s current charge is much less than it is in Shenzhen that is RMB 28 Yuan per month, or it is in Guangzhou RMB 25 Yuan per month, without permission from the government, the company is not able to increase the service charge.

I would like to throw some lights on the stock performance as well. As we can see from the above historical stock prices, the stock price slumped about 30% in the past one month. It is partially impacted by the overall stock market depression; more importantly, it shows the market’s worries about the uncertainty of post-Olympic performance of so-called ‘Olympic plate’ stocks. The company has invested heavily before the Olympic Games in order to guarantee its first-class services for the game. While the future benefits yet shown and service charge remains unchanged, the market investors start worrying about the company’s cash flow and capability of sustainable growth.

Nevertheless, I would like to suggest this stock to investors as the company has monopoly advantages in the digital TV industry in Beijing and the business structure of the company is also getting more and more sophisticated thus more risk resistant. Moreover, the current stock price is almost touching the bottom, thus it is the time for interested investors to buy-in. The only thing we need to pay attention is whether the company’s performance would continuously boom after the Olympic Games.

For the short term investors, I would like to suggest wait and watch, as post-Olympic performance of the company is yet uncertain; it is risky to rush in at the moment. For existing shareholders, I believe that there will be a chance in near future, once the government allows the company to increase the service charge, the overall business performance of the company will be largely improved, thus, having a positive impact on the stock price.

China Shipping Development Co. Ltd. - Dropped To Historical New Low

Wed, 13 Aug 2008 08:00:08 EST

China Shipping Development Co. Ltd. - Dropped To Historical New Low - by liz

China Shipping Development Co. Ltd.

Public (SHA: 600026)

Company Facts:

China Shipping Development Company Limited was known as Shanghai Haixing Shipping Company Limited that was initiated by Shanghai Sea Transportation (Group) Company in year 1994 and listed in Hong Kong Stock Exchange in the same year. The company’s current parent company is China Sea Transportation Group that was established in Shanghai on July 1997, which is also the parent company of Shanghai Sea Transpiration (Group) Company, Guangzhou Sea Transportation Group Company and Dalian Sea Transportation Company at the time it was set up. On December 1997, China Sea Transportation Group took over Shanghai Haixing Shipping Co. Ltd. and changed its name into China Shipping Development Co. Ltd. The company was listed in Shanghai Stock Exchange in year 2002.

China Shipping Development Co. Ltd. is the largest Chinese domestic costal sea-transporter for petrol and coal bulk containers. The company plays crucial role in China as well as Far East region. Moreover, the company has long-term transportation contracts with China Petroleum, which secures the stable growth in the company’s business and also allows the company to resist risks better in the highly competitive market. In addition, the company recently has signed a 15 year international sea transportation service contract with China Capital Steel & Iron Co. Ltd. and thus officially entered iron mine transportation field, which has also effectively extended the company’s business scope.

In order to improve the company’s transportation capacity, the company has invested USD 0.46 billion for purchasing 4 VLCC (Very Large Crude Oil Carriers) on total carriage of 308 thousand tons. The orders will be delivered on the fourth quarter of year 2009 and in year 2010.

Financial Overview:

Related Companies:

-- Holding Shareholder:

China Sea Transportation (Group) Corporation

-- Collaboration:

Shanghai Shidai Sea Transportation Co. Ltd.

-- Subsidiaries:

China Shipping Development (Hong Kong) Vili Co. Ltd.

China Shipping Development (Hong Kong) Hangyun Co. Ltd.

Shanghai Yinhua Shipping Co. Ltd.

Zhuhai New Era Shipping Co. Ltd.

Shanghai Friendship Shipping Co. Ltd.

-- Invested by same holding company

China Sea Transportation (Southeast) Holding Co. Ltd.

China Shipping Telecom Co. Ltd.

Jade Queen Navigation Inc.

Guangzhou Shipping (Group) Co. Ltd.

China Shipping (European) Holding Co. Ltd.

China Shipping (Hainan) Haisheng Carrier Co. Ltd.

China Shipping Industry Co. Ltd.

China Shipping (Australia) Agency Co. Ltd.

China Shipping (Hong Kong) Holding Co. Ltd.

China Petroleum China Shipping Fuel Supply Co. Ltd.

Dalian Shipping (Group) Company

China Shipping Container Transportation Co. Ltd.

China Shipping Japan Corporation

Shanghai Shipping (Group) Company

China Shipping International Trading Co. Ltd.

China Shipping (North American) Holding Co. Ltd.

China Shipping International Carrier Management Co. Ltd.

China Shipping Carrier Agency Co. Ltd.

Stock Health:

As on 11 August, 2008

Open: 16.09 High: 16.38 Low: 14.90 Close: 15.25 Vol.: 7,062,771

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	30 June, 2008	2007	2006	2005
Main business income	449702.49	1268696.62	944127.65	870044.82
Profit margin	212021.46	537770.25	330559.73	316953.80
Net Profit margin	167988.89	459605.06	277126.07	271422.26
Profit Ratio %	8.60	28.60	22.07	25.34

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-11	16.09	16.38	14.90	15.25	7,062,771
2008-08-08	17.57	17.57	16.00	16.07	10,488,882
2008-08-07	18.11	18.25	17.24	17.56	7,883,545
2008-08-06	18.52	18.70	17.88	18.08	6,859,845
2008-08-05	19.43	19.43	18.10	18.42	7,977,609
2008-08-04	19.81	20.12	18.95	19.40	9,799,030
2008-08-01	20.10	20.50	19.71	19.99	5,765,733
2008-07-31	20.56	20.62	20.06	20.16	5,627,546
2008-07-30	21.40	21.48	20.34	20.50	8,767,700
2008-07-29	21.50	21.55	20.75	20.77	4,834,926
2008-07-28	22.02	22.29	21.85	21.89	4,641,309
2008-07-25	22.00	22.10	21.81	21.87	2,836,514
2008-07-24	22.22	22.59	21.87	22.41	7,477,291
2008-07-23	22.52	23.00	21.75	21.79	5,531,608
2008-07-22	22.54	22.65	22.11	22.36	5,674,626
2008-07-21	21.94	22.75	21.50	22.55	9,391,788
2008-07-18	21.50	22.10	21.00	22.02	7,493,428
2008-07-17	21.15	21.49	20.51	20.98	5,284,953
2008-07-16	20.46	20.80	19.85	20.63	5,167,476
2008-07-15	21.80	21.89	20.18	20.49	6,392,042
2008-07-14	21.90	22.00	21.40	21.78	4,226,587
2008-07-11	21.80	22.28	21.50	22.13	5,911,292

Performance Analysis

From the light of the above data, the stock price of China Shipping Development Co. Ltd. has slipped notably in the past one month. It is partially caused by the overall depression of the stock market; more importantly, it shows market’s worry towards continuous increase of the global petrol price and the possibility of BDI (Baltic Dry Index)’s reduction.

However, in my opinion, the above factors have limited impacts on the company’s performance since the recent petrol price reduction has not brought up the stock performance and changes in the global sea transportation price will potentially influence all related industries rather than China Shipping Development Co. Ltd. itself.

Personally, I believe, there are three other motivating factors that drove the stock price down recently. Firstly, the company is fighting for market shares with global sea transportation giants in the increasingly fierce international stage. Unlike some other industries such as Telecom, Insurance or Petroleum, Chinese shipping market is totally open-up to the global giants without protection from the government, which has left the company no geographic advantages. Moreover, the global wide competition in shipping industry is heating up; therefore, the company has to continuously improve itself in order to maintain the current customers and to gain more market shares, which demands heavy capital investments as well. Secondly, the global economy has shown slowed down path, which effectively reduced the international trade and sea transportation demands. Thirdly, under river pipe has been built up for transporting fuel in China, thus, the alternative way of fuel transportation has taken some domestic business from the company.

To conclude, China Shipping Development Co. Ltd. is the largest fuel and coal transporter along the Chinese coast, and has entered iron mine transportation service in the field of international market as well. The company’s business performance has influenced by global petrol price increase, international carrier price reduction, and fierce competition with global shipping giants, global economy recession and alternative fuel transportation options; however, the comprehensive strength of the company has been developed over the years and it will secure the future growth of the business.

Personally, I believe the stock price of China Shipping Development Co. Ltd. has dropped to historical new low, thus, investors whom interested in shipping plate can make a move. However, investors are also suggested to avoid risks and operate their stock accordingly. Existing shareholders probably have to wait for quite long time for a break-even, thus, should gradually reduce holdings during the stock’s turbulences.

Jiangsu Miracle Logistics System Engineering Co. Ltd. - Potential Logistics & Aero-power Industries

Tue, 12 Aug 2008 10:02:11 EST

Jiangsu Miracle Logistics System Engineering Co. Ltd. - Potential Logistics & Aero-power Industries - by liz

Jiangsu Miracle Logistics System Engineering Co. Ltd.

Public (SZ:002009)

Company Facts

The company was known Wuxi Southern Miracle Logistic Machinery Co. Ltd, which was established in year 1997. Approved by the government of Jiansu Province, the company officially changed its name into Jiangsu Miracle Logistic System Engineering Co. Ltd. in year 2000.

Jiangsu Miracle Logistics System Engineering Co. Ltd. mainly engaged in three industries: logistic, manufacture of aero-power equipments and real estate development. Logistics business plays crucial role in bringing profits to the company at the moment while the aero-power equipment manufacture is the rising-sun industry which is encouraged by eco-friendly societies all over the world and expected to take place of current power generating modules in the future. Moreover, the company’s real estate business has also started to bring profits from the beginning of year 2008.

Jiangsu Miracle Logistics System Engineering Co. Ltd. has become the largest supplier for industrial intelligent automation system’s comprehensive solutions. The company majors in providing automation transporting & storage system to its customers in large-scale automotive and home applicants industries. Currently, the company’s services are the part of Toyota and Honda’s global purchasing system. Moreover, the company works closely with British FKIL Company in airports logistics world-wide, which has consistently brought contracts in the past and more contracts are likely to be signed in the future as well. Nevertheless, the company has also entered logistic markets in Malaysia, Thailand, Vietnam and India.

With regards to the aero-power business, the company has self researched & developed bamboo composite material chord, frame, tower and nacelle. The insufficient supply of chords is considered as bottle-neck for the fast development of aero-power generation industry in China. Therefore, the company’s composite material chord has great market potential and also has outstanding competitive advantages comparing with similar products as it is cheaper, more stable and shorter in production circle. Moreover, the new project of the fiber reinforced plastic chord has also started small-scale manufacture, which is regarded as a great improvement in the field.

In terms of the company’s third business focus, real estate development, the miracle city’ project has finished its construction and started selling in the first quarter of year 2008, and the second part of the project will also start soon.

In the first quarter of year 2008, the company has achieved main business income and net profit margin of RMB 261 million and RMB 32 million separately, which count 192.7% and 246% increase separately corresponding the same period in year 2007. The fast improvements were mainly contributed by implementing orders that made in the second half of year 2007 and operating and selling of the company’s real estate.

Financial Overview:

Related Companies:

-- Holding Shareholder: Mr. Huang Weixing

-- Subsidiaries:

Wuxi Ruier Zhufeng Technology Co. Ltd.

Baicheng Miracle New Energy Equipment Co. Ltd.

Wuxi Miracle Real Estate Development Co. Ltd.

Baicheng Miracle Public Facilitates Engineering Management Co. Ltd

Changchun Miracle Automation System Engineering Co. Ltd.

Baicheng Miracle Facilities Machinery Co. Ltd.

Wuxi Chengfeng New Energy Equipment Co. Ltd.

Baicheng Miracle Aero-Power Equipment Co. Ltd.

Baicheng Miracle Casting Co. Ltd.

Anhui Tongling Miracle Lantian Machinery Equipment Co. Ltd.

-- Collaboration:

Wuxi Luoshe Comprehensive Waste-water Solution Operation Co. Ltd.

-- Invested by same investor:

Jiangsu Miracle Logistics System Engineering Shareholding Co. Ltd. (Installment Branch)

Wuxi Miracle Vehicle Frame Co. Ltd.

Jiangsu Southern Miracle Group Company

Jiangsu Southern Miracle Investment Co. Ltd.

Stock Health:

As on 8 August, 2008

Open: 11.95 High: 11.95 Low: 10.58 Close: 10.58 Vol.: 2,054,415

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	30 June, 2008	2007	2006	2005
Main business income	26086.74	43148.69	25715.71	21457.30
Profit margin	4854.87	6403.79	3889.37	4049.76
Net Profit margin	3208.82	4409.41	2884.00	2634.90
Profit Ratio	8.04	11.98	8.85	9.04

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-08	11.95	11.95	10.58	10.58	2,054,415
2008-08-07	11.62	11.78	11.46	11.75	1,214,959
2008-08-06	11.64	11.69	11.35	11.63	1,241,254
2008-08-05	11.45	11.90	11.31	11.35	1,732,039
2008-08-04	11.89	11.99	11.33	11.35	1,061,433
2008-08-01	11.60	12.30	11.40	12.00	1,980,870
2008-07-31	12.63	12.73	11.87	11.88	2,013,394
2008-07-30	12.88	12.98	12.42	12.63	1,437,526
2008-07-29	13.08	13.08	12.70	12.72	1,825,974
2008-07-28	13.00	13.28	12.82	13.24	3,203,202
2008-07-24	12.68	12.95	12.68	12.95	2,787,740
2008-07-23	12.65	12.88	12.35	12.68	2,456,083
2008-07-22	12.68	12.90	12.53	12.61	2,517,932
2008-07-21	11.85	12.69	11.56	12.67	3,274,662
2008-07-18	11.41	12.00	10.95	11.87	2,864,169
2008-07-17	11.81	12.00	11.03	11.24	2,723,134
2008-07-16	12.60	12.77	11.48	11.56	4,296,507
2008-07-15	13.13	13.45	12.60	12.75	4,141,057
2008-07-14	12.60	13.25	12.55	13.10	2,666,943
2008-07-11	12.63	12.91	12.55	12.75	2,975,576
2008-07-10	13.08	13.52	12.77	12.78	5,130,121

Performance analysis:

Personally, I refer this stock as a high potential stock as the logistics and aero-power industries have great potential to grow in the near future in China mainland and the company has very well-built competitive advantages in both industries.

First of all, the company’s strategic alliances with Shanghai Electronics Co. Ltd. in chord manufacture and sales. The investors can pay attention to the progress in this project, as it is likely to stimulate the stock performance at once. Secondly, the company has signed aero-power equipment supply agreement with German Friend Company with total amount of Euro 32 million on July 2008.

Even though, the aero-power business of the company has yet to start large-scale manufacture; thus, the time of profits contribution from aero-power equipment manufacture is rest assured. Moreover, the real estate business has been discouraged by Chinese government for macro-control purpose, which has already made loss in year 2007. I assume that the company will rather stop further investment in realty projects in order to prevent bigger loss, for sure. It is predictable that although the sales of ‘Miracle City’ will contribute profits in short term, it should not be considered as resource of the company’s sustainable growth.

In my opinion, this stock is good for middle and long term investment and the target price is RMB 21 Yuan. However, it is not yet the best time, as I assume there will be a slip in the stock price in the near future, the target buy-in price in between RMB 9.19 Yuan and RMB 10.30 Yuan.

China Vanke Co. Ltd. - Uncertainty In The Future Of Chienese Realty Industry

Mon, 11 Aug 2008 12:56:35 EST

China Vanke Co. Ltd. - Uncertainty In The Future Of Chienese Realty Industry - by liz

China Vanke Co. Ltd.

Public (SZ: 000002)

Company Facts

Based on Shenzhen Modern Enterprise Co. Ltd., approved by Shenzhen City Governement, China Vanke Co. Ltd. was estabilished in the year 1988. The company’s ‘A’ share was listed in Shenzhen Stock Exchange in year 1991, consequently, in year 1993, the company’s ‘B’ share were also listed.

China Vanke Co. Ltd.’s main business is developing and sales of urban residential real estate. Vanke has become the best-known realty brand in most large-size and middle-size cities coutry-wide. The company has been awarded No. 1 position by Chinese real estate top 100 reaserch report of year 2008. The report’s objective is to analyze comphrehensive strength of top 100 Chinese realty companies regarding to 20 figures including business scale, profitability, growing strength, corporate liquidity, operational effectiveness, taxation contribution, etc.

In coming 10 years, the company plans to focus its business within urban economical circles, especially, Changjiang trangle economical circle, Zhujiang trangle economical cirlcle and Ring Bohai economical circle, where it has 40% GDP contribution, one quarter of residential savings of the contrary, and 2 times consumption power comparing with country’s average within only 4.1% of land coverage.

Financial Overview:

Related Companies:

-- Holding Company:

Huarun Shareholding Co. Ltd.

-- Collaboration:

Hangzhou Nandu Songcheng Real Estate Development Co.Ltd.

Wuhan Wangjiadun Modern Real Estate Co. Ltd.

Shanghai Jialai Real Estat Development Co. Ltd.

Yihang Vanke Co. Ltd.

Shenyang Vanke Yongda Real Estate Development Co. Ltd.

-- Subsidiaries:

Guangzhou City Vanke Huidong Real Estate Development Co. Ltd.

Fuzhou City Vanke Real Estate Co. Ltd.

Chengdu Vanke Real Estate Co. Ltd.

Shanghai Langda Industry Co. Ltd.

Shanghai Vnake Real Estate Co. Ltd.

Zhenjiang Rundu Realty Co. Ltd.

Zhejiang Vanke Nandu Real Estate Co. Ltd.

Xiamen City Vanke Nandu Real Estate Co. Ltd.

Shenyang Vanke Real Estate Service Co. Ltd.

Ningbo Vanke Real Estate Service Co. Ltd.

Tianjin Wantai Shishang Real Estate Limited Liability Company

Xiamen Fuchen Oriental Real Estate Development Co. Ltd.

And 226 more…

Stock Health:

Higest in the past 52 weeks: 40.78

Lowest in the past 52 weeks: 7.51

As on 8 August, 2008

Open: 7.98 High: 7.98 Low: 7.51 Close: 7.53 Vol.:52,180,000

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	30 June, 2008	2007	2006	2005
Main business income	1725501.30	3552661.13	1791833.15	1055885.17
Profit margin	332795.64	764160.57	343449.47	197618.17
Net Profit margin	206105.57	484423.55	229788.38	135036.28
Profit Ratio	6.87	16.55	15.39	16.25

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-08	7.98	7.98	7.51	7.53	52,180,000
2008-08-07	7.73	8.02	7.69	7.91	49,242,000
2008-08-06	7.92	8.04	7.55	7.80	113,875,000
2008-08-05	8.39	8.53	7.88	7.94	173,884,000
2008-08-04	8.55	8.60	8.31	8.47	44,571,000
2008-08-01	8.46	8.85	8.23	8.65	87,872,000
2008-07-31	8.83	8.89	8.48	8.50	73,705,000
2008-07-30	8.99	9.08	8.70	8.80	65,499,000
2008-07-29	8.85	9.06	8.80	8.95	93,327,000
2008-07-28	9.23	9.54	9.15	9.25	128,211,000
2008-07-25	9.10	9.32	8.90	9.15	140,890,000
2008-07-24	8.75	9.45	8.75	9.29	187,875,000
2008-07-23	8.89	8.95	8.64	8.71	91,179,000
2008-07-22	8.93	8.97	8.79	8.83	70,002,000
2008-07-21	8.60	9.00	8.45	8.96	110,027,000
2008-07-18	8.44	8.69	8.15	8.63	121,757,000
2008-07-17	8.51	8.62	8.30	8.35	97,937,000
2008-07-16	8.64	8.64	8.20	8.38	113,911,000
2008-07-15	9.52	9.57	8.75	8.80	160,251,000
2008-07-14	9.45	9.59	9.29	9.48	77,538,000
2008-07-11	9.80	9.90	9.31	9.50	134,797,000
2008-07-10	9.80	10.38	9.63	9.88	170,215,000
2008-07-09	9.40	10.13	9.38	10.01	204,946,000

Performance Analysis

Since the end of year 2007, the realty industry has been affected badly by the government’s macro policies whose objective is to prevent Chinese realty from overheating and to prevent consistently increased residential property price from turning into realty bubbles which are very likely to cause economical recession as it happened in Southeast Asia in 1997. As a result, realty industry plate has experienced dramatical depreciation, which has left Vanke no exception. As on 8th August, 2008, the stock price sliped to RMB 7.51 Yuan, which is historical ever lowest in the past 417 days.

In my opinion, the uncertainty in the future of Chienese realty industry has been intensified; especially, even the short term stock performance is rather unpredicatable. As for China Vanke Co. Ltd., in the first half of year 2008, the company achieved a business income and increase in net profit margin by 55.50% and 23.56% respectively, corresponding the same period of previous year. It is considered as incredible outstanding performance in such an overall depressing industrial environment. However, the stock performance in short term was rather sloppy in the last 417 days which was too weak to be lifted by the positive news relative profit margins, which is rather understandable as the strategy as inflow rather than profit margins.

It has been claimed that the company has consistently reduced its commercial home property price in order to achieve fast capital turnover. Thus, the achievement of the above performance was on the costs of the company’s future incomes. As a result, the company has achieved less profit margin comparing with the past, and it has been predicted that the figure will continuosly drop in the coming couple of years.

I believe, in near future, the realty industry will not able to experience boom unless the Chinese government will launch policies that will encourage the industry, which is highly unlikely at the moment. Therefore, many realty companies have to re-adjust their business strategies and even their business structure in order to survive till the new era of industrial prosperity comes again.

China Vanke Co. Ltd., for example, has slowed down its business development by cutting off 1.65 million square meters of new projects, delaying on-going 1.03 million square meters projects.

However, China Vanke Co. Ltd. owns large quantity of reserved lands, and has matured brand value and professional management team, as well as superior project locational coverage, which altogether allows the company holding its leading position in residential realty continous.

Personally, I believe, the realty plate stocks have dropped to the bottom level along with the industry’s turbulences, which has created an opportunity for long-term investors to buy-in at an ideal price. With regards to the stock performance of Vanke, the stock price has been cut almost into half since June 2008, after that, a big platform at marginal price RMB 8 Yuan level has been built up. Technically, it seems that the stock will start picking up slowly with the support of the platform its on, thus, this is now the opportunity for long-term investors.

However, as suggested before, short-term investors are unlikely to gain fruitful results in this stock, even in a year’s time, without supports form government policies; it is hard for this stock to show surprising performances. For those existing shareholder, it is probably a wise solution to wait for little longer than get rid of the stock right now as most investors must be on considerable loss right now.

Jiangsu Hongtu High Technology Co. Ltd. - IT Stock Review

Sun, 10 Aug 2008 08:21:42 EST

Jiangsu Hongtu High Technology Co. Ltd. - IT Stock Review - by liz

Jiangsu Hongtu High Technology Co. Ltd.

Public (SHA: 600122)

Company Facts

Founded by Jiangsu Hongtu e-Information Group Co. Ltd, Nanjing Cable Electronics Factory, Zhenjiang Jiangkui Group Company, Nanjing Zhongruan Information Engineering Company and Jiangsu Province Electric Industry Technological & Economical Development Company in year 1997, the company was listed in Shanghai Stock Exchange in year 1998.

The company’s main businesses are development, manufacturing and sales of computer, software, system integration and network products, laser DVD players, telecommunication equipments, and optical fiber cable products.

Jiangsu Hongtu High Technology Co. Ltd. is leading company in IT equipment manufacturing industry; which has been awarded ‘Top 500 Made-in-China Enterprise’, the ‘China e-Information Top 100 Enterprise’ and the ‘Chinese Top 100 Technological Enterprise’.

The company has been successful in electricity distribution field; its optical fiber cable business has effectively developed market share in national electricity network, transportation, energy and metal casting industries. Moreover, the company has excellent performance in consumer electronics field as well; cooperating with world digital TV top-box giant, Hong Kong Tiandi Digital Co. Ltd., the company produces world most advanced digital video broadcasting system which has contributed 189% increase in business income in the first quarter of year 2008 comparing the same with previous year.

In addition, the company focuses on international electronics product market as main profits resources. Because of fierce competition has dragged the profit margin to a very low level in domestic electronics market, the company has extended its efforts to Pan-Asian and European markets, where the competition is less. The oversea sales to European countries have increased from 37% to 79%, which has largely improved profitability of the company.

In domestic sales section, the company mainly depends on retailer chain-stores. Currently, the company has its 169 chain-stores covered Jiangsu province, Shanghai, Anhui Province, Beijing, Shandong province, Fujian and Jiangxi province; is Chinese number one IT chain-store retailer. The company plans to open 500 IT chain-stores by year 2010 and aims sales incomes over RMB 40 billion Yuan.

In addition to physical sales, the company has also developed e-Commerce project, which has combining advantages of Wal-mart, Dell and McDonald’s management and operation modules, and has been highly appreciated by National Development Reform Committee of China.

Financial Overview:

Related companies:

--Holding Shareholder:

Sanbao Group Co. Ltd.

-- Shareholding companies:

Nanjing Hongtu Jinding Real Estate Limited Liability Company.

Jiangsu Sujin Securities Investment Development Co. Ltd.

Huatai Securities Shareholding Co. Ltd.

Nanjing Fushitong Computing Equipment Co. Ltd.

-- Collaboration

Jiansu Hongtian Broad-band Shixun Co. Ltd.

-- Holding Subsidiaries:

Jiansu Hongtu High-Tech Software Engineering Co. Ltd.

Jiangsu Hongtu Jiateng Software System Co. Ltd.

Jiangsu Hongtu High-Tech Real Estate Development Co. Ltd.

Jiangsu Hongtu High-Tech Technology Development Co. Ltd.

Nanjing Yuanxia Industry Co. Ltd.

Hongtu Sanbao High-Technology Shareholding Co. Ltd.

Shanghai Hongtu Sanbao Department Store Co. Ltd.

Nanjing Yuanjiu Real Estate Development Co. Ltd.

Kunshan Hongrui Electric Co. Ltd.

-- Holding Sub-subsidiaries:

Zhenjiang Hongtu Sanbao Technological Development Co. Ltd.

Wuxi Hongtu Sanbao Technological Development Co. Ltd.

Jiangsu Hongtu Kaibo Electric System Co. Ltd.

Suzhou Hongtu Sanbao Technological Development Co. Ltd.

Nanjing Hongtu Sanbao Technological Development Co. Ltd.

Yancheng Hongtu Sanbao Technological Development Co. Ltd.

Anhui Hongtu Sanbao Technological Development Co. Ltd.

Yangzhou Hongtu Sanbao Technological Development Co. Ltd.

Jiangsu Hongtu Xingwang Technological Development Co. Ltd.

Huai’an Hongtu Sanbao Technological Development Co. Ltd.

Nantong Hongtu Sanbao Computing Technological Development Co. Ltd.

Shanghai Hongtu Sanbao Commercial & Trading Co. Ltd.

Nanjing Hongtu Sanbao Technological Development Co. Ltd.

Changzhou Hongtu Sanbao Technological Development Co. Ltd.

Xuzhou Hongtu Sanbao Technological Development Co. Ltd.

Huainan Hongtu Sanbao Technological Development Co. Ltd.

Shanghai Hongtu Sanbao Computing Development Co. Ltd.

-- Actual Controller: Yuan Yafei

Stock Health

As on 8 August, 2008

Open: 15.02 High: 15.20 Low: 13.86 Close: 14.15 Vol.: 2,419,948

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1st quarter 2008	2007	2006	2005
Main business income	226973.60	613942.46	451707.95	346715.68
Profit margin	4021.61	11181.90	4294.03	3691.52
Net Profit margin	1890.22	5575.52	1928.32	1488.58
Profit Ratio	7.15	9.67	12.64	11.61

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-08	15.02	15.20	13.86	14.15	2,419,948
2008-08-07	15.12	15.25	14.90	15.04	1,733,257
2008-08-06	15.81	15.82	14.76	15.17	873,976
2008-08-05	16.20	16.20	15.40	15.42	737,559
2008-08-04	15.73	16.70	15.65	15.87	1,763,792
2008-08-01	16.53	16.53	15.70	15.73	3,256,699
2008-07-30	16.38	16.78	16.30	16.62	3,307,343
2008-07-29	16.28	16.99	15.98	16.06	1,357,140
2008-07-28	16.98	16.98	16.20	16.43	1,396,424
2008-07-25	16.21	16.95	15.95	16.37	2,063,876
2008-07-24	15.78	16.68	15.61	16.49	3,073,504
2008-07-23	15.70	15.96	15.26	15.79	1,897,730
2008-07-22	15.55	15.70	15.35	15.42	1,661,393
2008-07-21	14.92	15.89	14.80	15.62	2,405,512
2008-07-18	15.27	15.44	14.54	15.25	2,177,796
2008-07-17	15.65	15.70	14.78	14.97	1,546,570
2008-07-16	15.60	15.98	14.76	15.34	3,942,605
2008-07-15	17.26	17.35	16.05	16.09	2,649,120
2008-07-14	16.50	17.30	16.10	17.15	2,183,979
2008-07-11	16.50	17.15	16.40	16.79	3,513,432
2008-07-10	16.31	17.60	16.31	16.87	3,225,000
2008-07-09	16.16	17.08	16.11	16.85	3,855,957

Performance Analysis:

In my opinion, IT plate stocks are one of best choices at the moment, because of IT industry has least been affected by global economical factors such as high petrol price and inflation. For example, the consumption of IT products is continuously increasing: PC sales has increased 12% while mobile phone sales has increased 13.6% in the first quarter of year 2008 corresponding the same period of previous year.

Jiangsu Hongtu High Technology Co. Ltd. has sped up its steps into IT retail market. In order to provide sufficient cash flow for constructing the chain-store network, the company has also invested in real estate business and Huatai Securities. The investment returns from real estate and securities have also improved the business performance while IT chain-store has yet large-scale developed.

Personally, I believe, Hongtu High-Tech has advanced technological advantages, reasonable business structure, multiple sales channels and aggressive business strategy. Although IT products have relatively short life circle and demands large investment in research & development section, I believe the company is very capable in it. Even in such a high competitive environment, the company’s businesses has moved on a fast track growth, especially, factors such as the company’s real estate sales will start in July and Huatai Securities is going to be listed in stock market, will greatly stimulate the stock performance in short and middle term.

Therefore, I would like to suggest this stock to investors, and target price is about RMB 32 Yuan for long term. In addition, I believe this stock is also good for short term investment, as it has shown amazing stability in stock market’s recessions in the past few months, thus, the unique turbulence resistant strength will help investors to secure their investments in current market situation.

Qingdao Doublestar Co. Ltd. - Middle and Long Term Investment

Sat, 09 Aug 2008 14:30:24 EST

Qingdao Doublestar Co. Ltd. - Middle and Long Term Investment - by liz

Qingdao Doublestar Co. Ltd.

Public (SZ: 000599)

Company Facts

Qingdao Doublestar Co. Ltd. was known as Qingdao Doublestar Shoes Industrial Shareholding Co. Ltd. The company was solely founded by Doublestar Group Company in year 1992 and was listed in Shenzhen Stock Exchange in year 1996.

The company was a reputed shoes manufacturer and ‘Doublestar’ is a Chinese well-known brand. Simultaneously, the company is also into tire manufacture business with ‘Doublestar’ as its brand name. Seeing huge potentials in tire manufacture industry, the company has made its major transformation from a rubber products manufacturer into a tire specialist by shareholding, merging and acquiring existing tire manufacturing companies. The company has also removed its shoe manufacture business. Currently, the company is one of the top five Chinese domestic tire manufactures with total production capacity of RMB 5 billion Yuan per year.

The company has adopted series of movements in order to improve its competitive advantages in tire and rubber industry. On April, 2008, the company has issued 75 million shares to the public in order to raise funds for its 1.3 million sets of premium all-steel heavy radial tire technological improvement project. Thereafter, the productivity of premium all-steel heavy radial tire is expected to reach 3.9 million sets per year. Moreover, the company plans to set up its production site for half-steel radial tire’s manufacture. The company’s business has stepped into fast growing path; it has been reported that net profit margin of the company has increased 165% in the first quarter of year 2008 corresponding to the same period of previous year.

Financial Overview:

Related Companies:

-- Holding company

Doublestar Group Limited Liability Company

-- Subsidiaries:

Qingdao Doublestar Rubber Casting Machinery Co. Ltd.

Qingdao Doublestar Tyre Industry Co. Ltd.

Ningbo Daxie Development Zone Doublestar Commercial Trade Co. Ltd.

Doublestar Dongfeng Tyre Co. Ltd.

Qingdao Tax-free Zone Doublestar Rubber Products Co. Ltd.

Qingdao Doublestar Hydraulic Power Electronics Engineering Co. Ltd.

Doublestar Luohe Zhongyuan Machinery Co. Ltd.

Qingdao Doublestar Casting Machinery Co. Ltd.

Qingdao Doublestar Digital-control Forging Presses Machinery Co. Ltd.

Qingdao Doublestar Environment Protection Equipment Co. Ltd.

Doublestar (Shiyan) Dongfeng Tyre Operation Co. Ltd.

Qingdao Doublestar Tyre Sales Co. Ltd.

Qingdao Doublestar Embroidery Product Industrial Co. Ltd.

Runan Doublestar Zhongyuan Tyre Industrial Co. Ltd.

Qingdao Doublestar Tyre International Trade Co. Ltd.

Qingdao Doublestar Machinery Industrial Sales Co. Ltd.

-- Actual Controler:

State-owned Assets Supervision and Administration Commission of the State Council

-- Invested by same holding company

Qingdao Doublestar Group Supply Co. Ltd.

Qingdao Doublestar Shoes Industrial Research & Education Centre

Qingdao Doublestar Group Technological Development Centre.

Qingdao Doublestar Group Thermal Power Factory

Qingdao Haijiang Shoes Industrial Co. Ltd.

Fujian Putian Doublestar Industrial Co. Ltd.

Qingdao Doublestar Celebrity Industry Shareholding Co. Ltd.

Stock Health:

As on 7 August, 2008

Open: 5.29 High: 5.32 Low: 5.19 Close: 5.32 Vol.:2,704,503

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1st quarter 2008	2007	2006	2005
Main business income	112219.49	436629.53	324780.13	309704.75
Profit margin	4505.29	13682.28	5046.35	8096.56
Net Profit margin	3398.44	8888.75	3884.08	6185.15
Profit Ratio	2.95	7.95	3.77	6.32

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-07	5.29	5.32	5.19	5.32	2,704,503
2008-08-06	5.28	5.30	5.16	5.26	2,887,162
2008-08-05	5.17	5.30	5.12	5.20	4,184,817
2008-08-04	5.28	5.35	5.18	5.19	3,413,616
2008-08-01	5.20	5.42	5.13	5.36	5,429,607
2008-07-31	5.53	5.57	5.25	5.26	6,381,930
2008-07-30	5.60	5.68	5.42	5.54	5,160,560
2008-07-29	5.64	5.64	5.47	5.53	6,662,477
2008-07-28	5.67	5.80	5.65	5.70	7,169,962
2008-07-25	5.72	5.77	5.66	5.66	7,003,423
2008-07-24	5.60	5.87	5.56	5.82	15,279,849
2008-07-23	5.66	5.78	5.52	5.54	8,034,961
2008-07-22	5.56	5.71	5.48	5.63	10,046,173
2008-07-21	5.34	5.65	5.26	5.59	9,766,727
2008-07-18	5.20	5.38	5.06	5.35	8,761,210
2008-07-17	5.36	5.42	5.08	5.11	8,679,744
2008-07-16	5.73	5.73	5.18	5.23	15,321,200
2008-07-15	5.80	5.89	5.51	5.76	14,946,964
2008-07-14	5.40	5.79	5.37	5.79	10,238,371
2008-07-11	5.54	5.65	5.36	5.50	8,811,024
2008-07-10	5.69	5.83	5.57	5.62	13,139,435
2008-07-09	5.70	5.95	5.68	5.76	17,580,275
2008-07-08	5.58	5.66	5.35	5.54	14,235,965

Performance analysis:

In order to show a clearer picture of the prosperity in future of the tire industry, I would like to introduce the incredible progresses that have been made in auto industry section in China as the two industries are closely connected in the demand and supply chain. China has become the second largest auto consumption market after the USA with annual auto production of 8.5 million in year 2007. According to statistics from China Automobile Industrial Committee in year 2007, China has also become the quickest growth new auto market with average speed of 45.8% per year, which has for sure stimulated the tire industry.

In addition, with supports from the government, Chinese domestic tire makers are enjoying 10% tax rebate in radial tires, and being allowed to increase their retail price. As a result, Qingdao Doublestar Co, Ltd. has shown better performance of 50-100% net profit margin increase, comparing to the same period of year 2007. Moreover, the company is focusing on cost control and marketing efforts in order to stand out in the industrial wide competition with world famous brands, such as Bridgestone, Michelin, Kumho, Hankook, Continental, etc.

However, main raw material, natural rubber price is continuously increasing; even after this May’s harvesting season, the price of the natural rubber has not dropped for the reason of the supply of the nature rubber is relatively insufficient in the market this year. The drawbacks in raw material supply section has put immense pressure on tire and rubber industry, many tire makers have to transfer the high manufacture costs into tire price and increase in order to maintain profitability, however, it is not the long-term solution as consumers purchasing power will be discouraged which will in turn reduce the market demand, consequently, is likely lead to overall recession in the industry.

I would like to throw some lights on the stock performance of Qingdao Doublestar Co. Ltd. In the past one month, the volume has been increased, and then followed by dramatic shrink down; the stock prices have also dropped accordingly. It maybe suggested as the movement of capital inflow. In my opinion, this stock is currently drawn less attention of investors and this situation maybe will last for some more time. Therefore, it is probably not an ideal stock for short-term investment at the moment. However, as the stock price is at a relatively low level, and the company has set up a clear business structure and stable market share, I would like to suggest middle-term and long-term investors to pay attention to this stock. The essence to change current weak position is the supply of natural rubber and the price of the raw material.

Shanghai Electric Power Co. Ltd. - Do Or Die?

Fri, 08 Aug 2008 07:17:59 EST

Shanghai Electric Power Co. Ltd. - Do Or Die? - by liz

Shanghai Electric Power Co. Ltd.

Public (SHA: 600021)

Company Facts

Shanghai Electric Power Co. Ltd. was started by Shanghai City Electric Power Company and China Huadong Electric Group Company in 1998. Currently, the company got transferred into a joint venture company with three main shareholders: China Electric Power Company holding 44.74% shares; China Electric Power International Development Co. Ltd. holding 25% shares; China Changjiang Electric Power Shareholding Co. Ltd. holding 10% shares of the company.

The company is located in one of China’s electricity shortage areas – Shanghai & Zhejiang region, thus has undoubted geographic advantages. Moreover, the company owns five electric power factories with total capacity of 4.96 million thousand-watt per hour, and has become the largest independent electric power producer in Shanghai. The business strategy of the company is ‘base in Shanghai, facing Huadong (East of China) area and targeting premium and best’

In the first half of year 2008, the company has reported a negative growth in net profit margin of RMB 0.56 billion Yuan, which counts 365% decrease corresponding to the previous year. The main reason for the loss is the price increase in coal, which is the major raw material input of the company. There is a possibility to increase the price of the electricity supply, however, under the Chinese government’s macro-policies control, the long-term solution for the company will mainly rely on seeking for new resources in power generation, such as aero-generator, nuclear generator, thermal power generator, etc. Seeing the future trend in the power generation industry, the company has made its strategic movements.

Recently, the company has invested RMB 3000 million Yuan in order to acquire 60% shares of Baling Group Company in Jiangsu Province, and thus became the holding company of Baling Group Company. This strategic movement aims to acquire resources lying in ocean, land, coast line, port, petrol and nature gas of Yancheng city, middle and north of Jiangsu Province, therefore, helps the company to grab market share and gain competitive advantages in building aero-generator and other form of generator power stations in the area.

Moreover, the company has also stepped in nuclear power generator field. It is said that four companies will jointly invest RMB 0.2 billion Yuan to set up Anhui Wuhu Nuclear Power Co. Ltd. in Anhui province, which aims to explore nuclear power resources and develop nuclear power station projects. The ratios of the investments are Shanghai Electric Power Co. Ltd. 14%, China Guangdong Nuclear Power Group Co. Ltd. 51%, Shenneng Shareholding Co. Ltd. 20%, and Anhui Province Resource Group 15%. Nuclear power is considered as cheaper and sustainable resource for power generation industry in the future. The project is expected to provide substitute resource for power generating for the company.

Financial Overview:

Related Companies:

--Shareholding Company:

Shanghai Caoqing Thermal Power Limited Liability Company, percentage of rights and interests: 36%

-- Collaboration:

Huaihu Coal-generator Power Limited Liability Company

Shanghai Waigaoqiao Third Electric Power Limited Liability Company.

Shanghai Waigaoqiao Erdian Limited Liability Company.

Shanghai Waigaoqiao Second Electric Power Limited Liability Company.

Shanghai Wuqing Electric Power Limited Liability Company.

Zhejiang Zheneng Zhenhai Gas-generator Power Co. Ltd.

Shanghai Shenlong Real Estate Co. Ltd.

Jiangsu Huadian Wangting Gas-generator Power Co. Ltd.

Xinhu Thermal Power Limited Liability Company.

Shanghai Wuqing Second Electric Power Limited Liability Company.

--Subsidiaries:

China Electric Investment Group Company

Jiangsu Shangdian Jiawang Electric Generation Co. Ltd.

Jiangsu Kanshan Electric Generation Co. Ltd.

Shanghai Shangdian Electric Engineering Co. Ltd.

Shanghai Shangdian Electric Operation Co. Ltd.

Shanghai Waigaoqiao Electric Generation Co. Ltd.

Shanghai Shangdian Caoqing Electric Generation Co. Ltd.

-- Actual Controller:

State-owned Assets Supervision and Administration Commission of the State Council

-- Same Holding Parent Company

Zhongdiantou Financial Co. Ltd.

Zhongdiantou Huadong Branch.

Stock Health

As on 7 August, 2008

Open: 4.17 High: 4.20 Low: 4.08 Close: 4.17 Vol.:2,035,470

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1st quarter 2008	2007	2006	2005
Main business income	220919.13	778726.34	788193.67	747977.22
Profit margin	-13181.21	76431.58	70663.48	71545.94
Net Profit margin	-12603.80	45124.42	40259.73	39781.27
Profit Ratio	-1.80	5.90	6.25	6.35

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-07	4.17	4.20	4.08	4.17	2,035,470
2008-08-06	4.15	4.19	4.08	4.14	2,002,710
2008-08-05	4.18	4.22	4.10	4.11	2,737,500
2008-08-04	4.26	4.26	4.15	4.17	2,031,160
2008-08-01	4.20	4.30	4.16	4.26	2,546,740
2008-07-31	4.40	4.44	4.24	4.25	3,408,170
2008-07-30	4.38	4.42	4.33	4.40	3,489,240
2008-07-29	4.42	4.42	4.32	4.33	2,886,570
2008-07-28	4.41	4.48	4.39	4.45	4,554,350
2008-07-25	4.40	4.41	4.36	4.38	3,451,690
2008-07-24	4.37	4.45	4.35	4.43	5,494,020
2008-07-23	4.42	4.45	4.32	4.37	4,246,070
2008-07-22	4.39	4.46	4.35	4.42	5,025,060
2008-07-21	4.28	4.39	4.22	4.38	4,713,330
2008-07-18	4.20	4.30	4.10	4.29	4,117,240
2008-07-17	4.25	4.35	4.13	4.16	6,267,390
2008-07-16	4.53	4.54	4.19	4.33	4,196,860
2008-07-15	4.70	4.75	4.52	4.55	3,965,940
2008-07-14	4.64	4.71	4.60	4.70	3,346,180
2008-07-11	4.70	4.79	4.59	4.67	5,041,120
2008-07-10	4.75	4.88	4.67	4.72	9,051,630
2008-07-09	4.62	4.78	4.62	4.77	8,494,060
2008-07-08	4.65	4.66	4.54	4.63	5,230,900

Performance analysis and investment suggestions:

From the lights of the above, Shanghai Electric Power Co, Ltd had excellent business performance in the past three years; however, first half of 2008 was a bit different. The nightmare started earlier this year when the snow storm occurred in south China, which caused the discontinuation in mining and coal transportation difficulties; consequently, the company suffered from shortage in coal supply and coal prices sky-high which has dramatically increased its operational costs. Although this lost can be compensated somehow by increasing electricity price, the action will take time as it is concerning the economical stability and need to get approval from the Chinese government.

The situation of the company is getting worse while Chaoyang Electric Power Factory of Beijing and Dalian Development Zone Thermal Power Generator have been terminated because of environmental protection purposes. The Chinese government has shown determinations towards ‘green-house’ effects of the globe and taken responsibilities to create a more eco-friendly society. As one of the results, high-pollution enterprises, such as Shanghai Electric Power Co. Ltd. will have to pay even more for its carbon dioxide exhausts and have to invest in eco-friendly manufacture equipments.

Facing the do-or-die choice, the company has made movements in seeking for alternative power generating resources substitutive of coal. However, it requires large amount investments, and will not show benefits in near future. Therefore, I assume that the company’s business performance will not be improved any sooner, instead, the huge investment burden will put the company in check.

In my opinion, the stock price has dropped under its market value, and there is no obvious stimulation to gear up the stock performance at the moment. Therefore, investors should be very careful with their investment decisions, while current shareholders have to be patient if expecting rewards at all. An alternative choice would be cut off the holdings and looking for better stock elsewhere.

Zhongchu Development Stock Co. Ltd. - 2008 Performance Better Than The Prediction

Thu, 07 Aug 2008 18:43:05 EST

Zhongchu Development Stock Co. Ltd. - 2008 Performance Better Than The Prediction - by liz

Zhongchu Development Stock Co. Ltd.

Public (SHA: 600787)

Company Facts:

Zhongchu Development Stock Co. Ltd. is the leading warehouse enterprise in China (mainland), which is located in the Tianjin’s – Bohai Ocean economy development circle. The company has market shares dominantly in the Bohai logistic circle thanks to its geographic advantages, and has spread its logistic network to over 20 middle and big sized cities country-wide. Over years, with strong supports from its parent company - China Material Storage & Transportation Corporation (CMST), Zhongchu Development Stock Co. Ltd. has become a well-known logistics giant with total assets of over RMB 6 billion Yuan and capacity of throughput over 40 million tons per year.

Zhongchu Development Stock Co. Ltd. was formerly known as Tianjin Zhongchu Commercial Trade Shareholding Co. Ltd. in the year 1998. The company was founded by six Tianjin-based subsidiaries of CMST, and was listed in Shanghai Stock Exchange on January 1997.

The company is mainly engaged in modern logistic, storage & distribution of manufactured material, domestic & international trade and impawning supervision business, etc. The company’s objective is international level and wants to become a comprehensive global logistic player rather than traditional local warehouse operator.

Financial Overview:

Related companies:

-- Business partner:

Tianjin Wansheng Logistic Co. Ltd. Percentage of rights and interests: 50%

-- Holding shareholder:

China Material Storage & Transportation Corporation

-- Subsidiaries:

CMST Shanghai Logistic Co. Ltd.

Wuxi CMST Logistic Co. Ltd.

Shanghai CMST Logistic & Delivery Co. Ltd.

Beijing CMST International Technology Co. Ltd.

Tianjin CMST International Cargo Transportation Agency Co. Ltd.

Wuxi CMST Stainless Non-ferrous Metal Trading Administration Co. Ltd.

Beijing CMST Century Logistic Limited Liability Company

Shanghai Lingang Logistic Co. Ltd.

CMST Tianjin Limited Liability Company

Qingzhou CMST Logistic Co. Ltd.

Shenyang Gujiazi Material Market

Nanjing Manufacture Material Center Wholesale Market

Zhengzhou Keheng Industry Co. Ltd.

-- Collaboration

Tianjin Botong Culture Express Co. Ltd.

Wuxi Modern Logistic Co. Ltd.

Tianjin Baoshan Steel & Iron Chuling Material Distribution Co. Ltd.

Qingdao CMST Logistic Co. Ltd.

Wuxi City Qianjin Transportation Co. Ltd.

Stock Health

As on 5 August, 2008

Open: 6.90 High: 6.95 Low: 6.80 Close: 6.86 Vol.:3,067,433

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1st quarter 2008	2007	2006	2005
Main business income	354499.92	1305657.77	703189.45	521457.26
Profit margin	8041.11	23199.76	13889.93	10029.86
Net Profit margin	5722.60	14479.05	7377.36	6399.24
Profit Ratio	1.82	3.69	4.56	4.20

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-05	6.90	6.95	6.80	6.86	3,067,433
2008-08-04	6.94	7.06	6.81	6.83	1,800,189
2008-08-01	6.86	7.05	6.73	6.95	3,004,324
2008-07-31	7.08	7.15	6.87	6.89	2,648,227
2008-07-30	7.32	7.37	6.96	7.03	4,498,542
2008-07-29	7.40	7.65	7.21	7.23	7,220,947
2008-07-28	7.40	7.56	7.33	7.53	6,944,377
2008-07-25	7.24	7.40	7.12	7.38	4,071,469
2008-07-24	7.31	7.44	7.20	7.30	4,716,810
2008-07-23	7.12	7.44	7.12	7.22	6,447,394
2008-07-22	7.30	7.30	7.11	7.12	4,281,028
2008-07-21	6.88	7.28	6.78	7.20	6,913,162
2008-07-18	6.55	6.98	6.52	6.91	4,627,457
2008-07-17	6.69	6.81	6.42	6.50	2,645,041
2008-07-16	6.61	6.77	6.20	6.53	4,291,643
2008-07-15	7.07	7.14	6.71	6.72	4,630,843
2008-07-14	6.86	7.12	6.78	7.06	5,029,835
2008-07-11	6.70	7.05	6.65	6.93	7,937,850
2008-07-10	6.98	7.21	6.83	6.84	16,356,051
2008-07-09	6.60	6.81	6.60	6.81	4,540,414
2008-07-08	6.09	6.23	6.00	6.19	4,123,916
2008-07-07	5.78	6.08	5.71	6.05	3,408,531

Beside its main business, Zhongchu Development Stock Co. Ltd. has also made financial investment of total amount of RMB 50 million Yuan in 3.33% shareholdings in Pacific securities Limited Liability Company and has invested in Shenzhen Futures Company. The financial investments have improved the company’s profitability and capability of risk resistant.

The net profit of the company has grown by 150% in the first half of year 2008 corresponding the same period of the previous year. In my opinion, the business performance is a better than the prediction, therefore, the market confidence towards this stock has reaffirmed. As the stock price has been devalued by the market analysts, as there is potentially a growing space on top of the current price. Investors should pay attention to this low-price stable-performance stock.

Seeing the great opportunities in Tianjin Binhai New District, the company has shown aggressive strategic movements by increasing marginally RMB 6000-7000 million Yuan investments in order to develop new projects. The new projects are including Tanggu Sea-transportation Terminal, Tianjin Xingang Containers II Warehouse, Tianjin airport logistic center, Tianjin logistic and distribution Center II and Tianjin Steel & Iron Market, etc. Moreover, on 1ST July, 2008, the company has announced that new joint venture company which will be set up in order to comprehensively plan and develop raw land Tanggu Farm, located in Bohai New District, into its logistic site.

However, it has been criticized that the company’s business structure is too simple and the company is yet to perform all functions in a modern logistic chain. Moreover, human resource shortness in fast growing modern logistic industry has become an urgent problem facing the whole logistic industry in China, it leave Zhongchu Development Store Co. Ltd. no exception. Actually, shortage of international level logistic specialists has become the bottleneck of the future development of the company. Thus I believe that there will be a long way ahead before the company moves forward into its globalization ambition.

To conclude, the company’s first half year performance was a lot better than previous market expectation and this trend is likely to remain; accordingly, the stock price has recovered quickly from the bottom and has been able to sustain the levels for the past one month. The company is no doubt a reputed leading logistics giant in China and is aiming international logistics standard; in action, the company has made aggressive investment plans to build up most advanced comprehensive logistic site in Bohai New Economical District. This plan has shown investors a clearer picture of the company’s business direction and reaffirmed their confidence.

In my opinion, this stock is valuable to invest in. Investors are suggested to buy-in while shareholders can increase their holdings at recent price. Short-term investment return is unlikely to be surprising , however, for a middle term, let’s say half year to one year time, this stock is a safe one to invest. For long term decision making, I would suggest investors pay attention to the company’s movements in globalization and HR solutions.

UFIDA Software Co.Ltd. - One Of The Best Choices For Investors

Wed, 06 Aug 2008 13:10:39 EST

UFIDA Software Co.Ltd. - One Of The Best Choices For Investors - by liz

UFIDA Software Co.Ltd.

Public (SHA: 600588)

Company Facts:

UFIDA Software is the prevalent management software supplier in Asian-Pacific. It is also Chinese largest independent supplier of management software, financial software, group management software, SMB software and ERP software.

The company was known as UFSOFT, founded by two partners: Wang Wenjing and Su Qiqiang in Beijing in the year 1988. The company transferred into shareholding limited company in year 1999 and listed in Shanghai Stock Exchange in year 2001.

The company has successfully transferred itself from a software product supplier into a business solution server. The company is known as one of the biggest investors in Research and Development as it has R&D facilities in Beijing, Nanjing, Shanghai, ShenZhen and Nanchang. In April 2008, the company launched its new generation self researched & developed SOA (service-oriented-architecture) software U9, which is aimed to help small and middle size SMEs to harmonize their front and back office management functions. It has also helped the companies to largely enhance the core competitive advantages and affirm the leading position of the company in the industry. There are more than 600,000 enterprises in Asia-Pacific region that are customers of UFIDA.

In year 2008, with RMB 0.8 billion Yuan cash in hand, the company made its aggressive business strategy whose objective was to fast expand its business into industry, making it possible through purchasing and reforming other firms, which has also helped the firm to actually reach more of its prospective customers who were looking for a similar product in the market, to some extent. Moreover, in order to guarantee the stability of the essence of its management team and core human resources, the company exclusively released its unique motivation plan; use of 3% shares for rewarding purposes which made significant contributions to the company in overall strengthening its ever-growing team.

Financial Overview:

Related companies:

--Holding Shareholder:

Beijing UFIDA Technology Co. Ltd. Percentage of rights and interests: 30.34%

--Subsidiaries:

Wuhan UFIDA Software Limited Liability Company

Tianjin UFIDA Software Technology Co. Ltd.

Chongqing UFIDA Software Co. Ltd.

Beijing UFIDA Aifusi Software System Co. Ltd.

Shenzhen UFIDA Software Co. Ltd.

Guanxi UFIDA Software Co. Ltd.

ZHejiang UFIDA Software Co. Ltd.

UF International Holdings Co. Ltd.

Beijing UFIDA Huabiao Software Technology CO. Ltd.

Shengyang UFIDA Software Co. Ltd.

Suzhou UFIDA Software Co. Ltd.

Shandong UFIDA Software Co. Ltd.

Shenzhen UFIDA Technology Industrial Co. Ltd.

Beijing UFIDA Zhengwu Software Co. Ltd.

Dalian UFIDA Software Co. Ltd.

Anhui UFIDA Software Co. Ltd.

Beijing UFIDA Financial Software System Co. Ltd.

Xiamen UFIDA Tobacco Software Co. Ltd.

Guandong UFIDA Software Co. Ltd.

Beijing UFIDA Mobile Business Technology Co. Ltd.

--Collaborations

Beijing UFIDA Zhiyuan Software Technology Co. Ltd.

Beijing UFIDA Audit Software Co.Ltd.

Beijing UFIDA Trading-purpose Graph Technology Co. Ltd.

Beijing Xima Yongtai Trading-purpose Graph Technology Co. Ltd.

--Actual Controller

Mr. Wang Wenjing (President)

Stock Health

As on 4 August, 2008

Open: 28.90 High: 28.90 Low: 27.80 Close: 27.80 Vol.: 365,830

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1^st quarter 2008	2007	2006	2005
Main business income	26808.09	135684.97	111356.79	100076.34
Profit margin	7985.14	38779.66	18747.06	11838.34
Net Profit margin	7201.22	36045.14	17171.35	9883.50
Profit Ratio	3.21	14.97	13.23	8.19

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-04	28.90	28.90	27.80	27.80	365,830
2008-08-01	27.50	28.99	27.12	28.84	970,958
2008-07-31	28.69	28.90	27.60	27.60	1,254,106
2008-07-30	29.39	29.39	28.50	28.71	885,258
2008-07-29	29.00	29.60	28.90	29.05	677,929
2008-07-28	29.99	30.17	29.10	29.66	1,412,009
2008-07-25	29.74	30.45	29.30	29.94	890,737
2008-07-24	29.47	29.94	29.42	29.80	524,038
2008-07-23	29.98	30.16	29.26	29.47	487,165
2008-07-22	30.19	30.26	29.40	29.80	672,393
2008-07-21	29.00	30.33	28.99	30.26	1,050,314
2008-07-18	29.00	29.49	28.50	29.37	382,629
2008-07-17	28.85	29.88	28.71	28.88	597,078
2008-07-16	29.09	29.49	28.51	28.87	716,117
2008-07-15	30.30	30.30	29.01	29.52	1,230,333
2008-07-14	30.40	30.80	29.70	30.18	1,276,910
2008-07-11	29.20	30.59	29.00	30.23	1,902,055
2008-07-10	29.00	29.50	28.60	29.32	1,778,896
2008-07-09	29.21	29.48	28.69	29.38	1,803,427
2008-07-08	29.78	29.79	28.68	29.20	955,842
2008-07-07	29.05	30.00	28.91	29.79	1,069,394

Performance Analysis:

The very nature of the software industry has decided that it will not be bored by inflation caused by raw material price increase, therefore, unlike other industries, under the threat of inflation; the software industry plate is one of the best choices for investors. Personally, I believe that UFIDA stock has a great value for long term investment, and the current price is at a quite reasonable level. The expectant price is about RMB 36 Yuan in a year’s time.

However, competition is the thing which the companies in this sector should worry about, leaving no exception to the one in question, as the competition is getting fierce in terms of international market share. While English-speaking countries are likely to outsource its business solution software development to Indian software companies; Japanese companies have now started showing interests into Chinese software engineering companies as there are similarities in language and culture backgrounds. UFIDA’s objectives towards international leading standard, is to continuously improve its services. Thus, the company continuously tries to provide customized business solutions to its clients and tries to meet customers’ different needs in separate specific categories, to come in the front of its competitors.

Therefore, I believe UFIDA’s customer oriented business operational module will secure its leading position in the industry and gain remarkable market shares in the international arena. The stock is now almost on an unwavering level and there is no evidence of big amount capital inflow or outflow. Personally, I do not refer this stock as to best short-term stock for a simple reason that internationals companies have gained momentum as well which could have adverse effect on the companies’ long-term objectives, thus, investors are suggested to buy-in and existing shareholders are suggested to increase holdings at this moment of time for middle or slightly longer duration than that.

China CSSC Holdings Co. Ltd. - Has Better Risk Resistant Business Structure

Tue, 05 Aug 2008 11:49:49 EST

China CSSC Holdings Co. Ltd. - Has Better Risk Resistant Business Structure - by liz

China CSSC Holdings Co. Ltd.

Public (SHA: 600150)

Company Facts:

China CSSC Holding Co. Ltd. is the biggest shipbuilding enterprise in mainland China; the company is also the leading diesel engine producer with advance competitive advantages in engineering technology and management.

The company was initiated by Hudong Shipbuilding Factory (established in 1952) and Shanghai Shipbuilding Factory (established in 1862), and officially set up in Shanghai in 1997. The company’s main business was manufacture of low-speed diesel engines.

Over years, the company has developed its business focus into three major fields: shipbuilding, ship repairing, and engine manufacturing. The total capacity of shipbuilding of the company is 3.2 million tons per year. According to latest news, the company has purchased 65% shareholdings from Shanghai Jiangnan Changxing Ship Manufacture Co. Ltd., and by combining the capacity of two factories, the yearly manufacture capacity will reach 7 million tons per year, which will rank the company the second from top in the world, right after South Korean company.

Thanks to the booming in global shipbuilding industry in the last five years; China CSSC Holding Co. Ltd. has made ever-great achievements. In year 2007, the company’s business income was RMB 17.88 billion Yuan, with equally successful performance in its three main businesses: 67% growth in shipbuilding, 22% growth in ship repairing, and 20% growth in engine manufacture comparing the same with year 2006. According to the first quarter’s report, the business income was RMB 3.985 billion Yuan, which count 16.37% overall increase, corresponding the same period of the previous year.

Financial Overview:

Related companies:

--Collaboration Companies:

Jianyin Huasheng Steel & Iron Pre-treatment Co. Ltd.

Shanghai CSSC Sanjing Shipbuilding Diesel Engine Co. Ltd.

Jiangyin Huaer New & Special Paint Co. Ltd.

Jiangyin Huachang Steel Painting Co. Ltd.

Guangzhou CSSC Yuanhang Wenchong Ship Engineering Co. Ltd.

Shanghai Dongzhou Labor Services Co.Ltd

--Holding Company:

China CSSC Group Corporation, Percentage of rights and interests: 61.06%

--Holding Subsidiaries:

Shanghai Waigaoqiao Shipbuilding Co. Ltd.

CSSC Chengxi Ship Repairing Co. Ltd.

Hudong Heavy Machinery Co. Ltd.

Shanghai Hulin Metal Work Co.Ltd.

Jiangyin Chengxi Metal Hot-working Co. Ltd.

Shanghai Xinye Shipbuilding & Ocean Engineering Designer Limited Liability Company.

Shanghai Hudong Shipbuilding Diesel Engine Co.Ltd.

Shanghai Lingang Ocean Engineering Co.Ltd.

Stock Health

As on 21st July, 2008

Open: 46.09 High: 46.70 Low: 45.70 Close: 46.25 Vol.: 4,775,590

Key Stats & Ratios

Unite: RMB 10,000 Yuan

Item	1st quarter 2008	2007	2006	2005
Main business income	398351.17	1787615.20	1174154.90	142328.42
Profit margin	125978.12	431358.38	179643.16	16180.61
Net Profit margin	98417.01	291766.25	121787.95	13555.53
Profit Ratio	9.52	31.17	34.61	18.93

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-04	76.80	76.80	74.48	74.64	1,028,047
2008-08-01	76.49	77.90	74.02	76.88	1,332,044
2008-07-31	80.00	80.24	76.71	77.03	1,302,888
2008-07-30	79.50	81.50	78.90	79.45	1,374,624
2008-07-29	81.85	81.90	78.22	78.96	2,736,156
2008-07-24	81.91	83.80	81.69	83.33	3,893,294
2008-07-23	83.10	85.15	81.60	81.76	3,804,874
2008-07-22	82.48	85.70	81.50	82.91	3,108,966
2008-07-21	80.88	83.76	78.50	82.58	3,880,778
2008-07-18	77.88	81.09	77.63	80.52	2,662,285
2008-07-17	79.60	81.11	77.20	77.62	2,406,143
2008-07-16	79.98	80.00	76.92	78.20	3,228,480
2008-07-15	86.25	87.85	80.10	80.95	4,438,307
2008-07-14	84.70	88.48	84.70	86.61	2,068,146
2008-07-11	88.48	88.55	83.90	86.37	4,835,201
2008-07-10	80.99	90.48	80.10	88.31	8,765,616
2008-07-09	80.00	82.99	79.39	82.25	3,866,400
2008-07-08	78.70	81.34	77.66	79.39	4,060,036
2008-07-07	72.80	78.80	72.80	78.58	4,296,406
2008-07-04	74.30	74.68	72.00	72.75	2,117,910

It has been predicted that the shipbuilding industry will keep fast growing trend for another couple of years. Orders for Shipbuilding, ship repairing and diesel engine has been fully booked till year 2010. As contracts were signed in last year with relatively high price, therefore, I assume that the company will show a better than industrial average performance in the future 2 years. In addition, CSSC is the main marine builder for Chinese Navy. The company provides military purpose marines and navy equipments which are guaranteed long-term contracts. Investors are suggested to pay attention to this stock as it has predictable stable business income which is considered to be the core to secure shareholder’s investments.

However, as other companies in shipbuilding industry, CSSC is also facing some pressures, such as increasing competition in the industry, turbulence in exchange rate, price increase in steel and other raw material, and business income tax increase. I believe, CSSC has better risk resistant business structure than those sole shipbuilding business companies. The multiple focusing business structure will help the company to a sustainable growth in this complicated business environment.

Moreover, in this capital intensive industry, continuous improvement in business performance also relies on the ability of raising capital investment. CSSC has seen the risks ahead and has pre-acted on it. The company is going to launch total amount not exceeding RMB 3.7 billion Yuan splitable and tradable securities in five year period. The fund will be used in four fields: shipbuilding, ship repairing, engine producing, and ocean engineering. Personally, I believe the investment in ocean engineering will secure the pole position of CSSC even after the industrial fast growing period, because the industry will compete in terms of technological strength such as ocean engineering once the industry move into smooth growing period, which is predicted after year 2010. From this strategic movement, it shows a clearer picture of the vision of the management of CSSC, and also gives investors good confidence. I would like to assume its middle term target price will be RMB 200 Yuan.

Despite the analysis regarding the business performance, structure and capital movement of the company, I would like to throw some lights on the stock performance of CSSC as well. Recently, the stock has been relatively stable. Although it was once disappointing after a deep dive below RMB 100 Yuan per share, within half month time, this stock has shown a miracle performance by standing on RMB 88.8 Yuan, continuous rise to RMB 130 Yuan. Technically, it seems the stock is struggling to break RMB 140 Yuan’s pressure point. Therefore, I would like to suggest short-term investors be very careful with their investment decision.

Poly Real Estate Group Co., Ltd. - Outstanding Performance

Mon, 04 Aug 2008 07:33:43 EST

Poly Real Estate Group Co., Ltd. - Outstanding Performance - by liz

Poly Real Estate Group Co., Ltd.

Public (SHA: 600048)

Company Facts

Poly Real Estate Group Co. Ltd. was known as Guangzhou Poly Real Estate Development Company, which was initiated by one of the subsidiaries of China Poly Group Co. Ltd. - Poly Southern Group Co. Ltd. in Guangzhou 1992. Approved by the former National Economy & Trading Committee in year 2002, raised by Poly Southern Group Co. Ltd., Guangdong Huamei Educational Investment Group Co. Ltd., and 16 individual investors, Poly Real Estate Group Co. Ltd. was officially established.

The main of the company are real estate development, sales, rental, and real estate management. The company has projects in 18 economical central cities country-wide, and currently has 61 projects in process, which will contribute 24 million square meters commercial property for sale. In addition, the company marginally has 10 million square meters reserved lands in ten cities.

Financial Overview:

Related Companies:

Holding company:

Poly Southern Group Co. Ltd., percentage of ownership: 48.97%

Holding Subsidiaries:

Poly Huannan Co. Ltd.

Changsha City Poly Real Estate Management Co. Ltd.

Shanghai Poly Jianyong Real Estate Co. Ltd.

Beijing Jinchenghua Real Estate Development Co. Ltd.

Poly (Shenyang) Real Estate Development Co. Ltd.

Poly (Changchun) Real Estate Investment Co. Ltd.

Shanghai Jianjin Real Estate Co. Ltd.

Guangzhou Siruida Real Estate Agency Co. Ltd.

Shenyang Shengxing Laboratory Investment & Development Co. Ltd.

Poly Guangzhou Real Estate Management Co. Ltd.

Guangzhou City Jiali Decoration Engineering Co. Ltd.

Poly (Chongqing) Investment Co. Ltd.

Dandong Poly Tianci Real Estate Development Co. Ltd.

Yueyang Poly Realty Co, Ltd.

Guangzhou Poly Exhibition Services Co. Ltd.

Poly (Changchun) Real Estate Management Co. Ltd.

Poly (Wuhan) Real Estate Development Co. Ltd.

Guanzhou Poly Licheng Real Estate Development Co. Ltd.

Shenyang Guangtian Real Estate Development Co. Ltd.

Guangzhou Fuli Building Installment Engineering Co. Ltd.

Shenyang Guangtian Real Estate Development Co. Ltd.

Nanchang Kaisi Real Estate Management Co. Ltd.

Changsha Yongfeng Eco-zoo Construction Development Co. Ltd.

Shenyang Hengfu Real Estate Development Co. Ltd.

Foshan City Shunde District Poly Real Estate Development Co. Ltd.

Poly (Beijing) Real Estate Development Co. Ltd.

Poly Chongqing Real Estate Management Co. Ltd.

Poly Bogaohua (Wuhan) Real Estate Development Co. Ltd.

Guangzhou Huachu Real Estate Development Co. Ltd.

Poly (Baotou) Real Estate Management Co. Ltd.

Poly (Wuhan) Real Estate Development Co. Ltd.

Guangzhou Deli Construction Regulatory Co. Ltd.

Chengdu City Xindu District Poly Investment Co. Ltd.

Poly Anxin (Qingdao) Real Estate Development Co. Ltd.

Guangzhou Science City Poly Real Estate Co. Ltd.

Poly Guangzhou Real Estate Development Co. Ltd.

Guangzhou Poly Realty Club Management Co. Ltd.

Poly Real Estate Management (Beijing) Co. Ltd.

Shanghai Poly Real Estate Development Co. Ltd.

Poly (Yangjiang) Real Estate Development Co. Ltd.

Wuhan Miaoshan Tengfei Real Estate Management Co. Ltd.

Guangzhou Poly Digital Technology Co. Ltd.

Shanghai Jianqiao Real Estate Co. Ltd.

Guangzhou City Poly World Trade Investment Co. Ltd.

Shanghai Junlan Realty Co. Ltd.

Poly Real Estate Management Shenyang Co. Ltd.

Poly (Qingdao) Realty Co. Ltd.

Nanchang Yagao Realty Co. Ltd.

Guangzhou Fuli Construction Design Co. Ltd.

Shanghai Chengqian Real Estate Development Co. Ltd.

Hengli (Hong Kong) Realty Co. Ltd.

There are quiet a few more subsidiaries.

Stock Health:

As on 31t July, 2008

Open: 16.83 High: 16.90 Low: 15.30 Close: 15.60 Vol.: 20,785,100

Business Performance:

Unite: RMB 10,000

Item	1st quarter 2008	2007	2006	2005
Main Business Income	538133.06	811523.49	403121.22	235641.88
Profit Margin	182964.50	240309.01	105046.47	65569.50
Net Profit Margin	103401.19	148908.80	67145.57	40684.64
Net Returns on Assets %	8.03	12.49	18.46	42.81

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-07-31	16.83	16.90	15.30	15.60	20,785,100
2008-07-30	17.41	17.80	16.66	16.85	16,851,000
2008-07-29	16.35	17.36	16.04	17.17	30,256,500
2008-07-28	17.25	17.75	16.70	16.85	44,079,100
2008-07-24	15.49	16.91	15.40	16.90	45,698,800
2008-07-23	15.81	15.96	15.08	15.37	17,800,100
2008-07-22	15.25	15.94	15.21	15.61	23,470,300
2008-07-21	14.00	15.66	13.91	15.36	29,020,400
2008-07-18	14.25	14.58	13.33	14.40	24,686,900
2008-07-17	14.60	14.90	13.70	13.94	25,036,200
2008-07-16	14.75	14.75	13.85	14.35	33,025,300
2008-07-15	16.82	17.06	15.12	15.12	39,943,900
2008-07-14	16.70	17.38	16.35	16.80	24,363,800
2008-07-11	17.31	17.71	16.50	16.91	35,296,400
2008-07-10	17.28	18.80	16.72	17.74	54,364,800
2008-07-09	16.25	17.28	16.25	17.28	35,716,400
2008-07-08	15.50	16.16	15.25	15.71	26,855,000
2008-07-07	13.93	15.53	13.92	15.53	28,466,000
2008-07-04	13.49	14.74	13.34	14.12	22,978,100
2008-07-03	12.80	14.03	12.60	13.54	12,615,700
2008-07-02	12.65	13.40	12.60	13.18	9,848,200
2008-07-01	13.48	13.49	12.75	12.81	7,471,600
2008-06-30	13.00	13.63	12.90	13.49	9,410,100
2008-06-27	14.00	14.08	13.22	13.29	21,243,800
2008-06-26	14.50	15.10	14.21	14.69	22,241,300

Recently, the company has released its half-year’s performance report, which shows that the business income and net profit in the first half of year 2008 was RMB 5.38 billion Yuan, and RMB 1.03 billion Yuan separately. It has increased by 156.40% and 272.18% separately comparing with the same in year 2006.

Notably, under the macro-control from Chinese government, from January to May, real estate sales has been slow down by 7.2% country-wide, while Poly Real Estate Group Co. Ltd. has exclusively made 39.4% progresses in its sales. The secret is lying in its advantages in low costs, famous brand, and the fast capital revolving strategy.

I would like to emphasis on the dramatic growth in the company’s net profit margin, which highlights the outstanding performance of the company, It is exceptionally excellent because of the realty industry is now in an overall depression.

Firstly, the net profit margin increase was benefited from the sales price increase in premium residential properties, which is also the company’s main focus. Secondly, it was contributed largely by the successful costs control campaign carried by the company in its large-scale real estate projects. Thirdly, the company has griped the opportunity of small and middle size localized companies struggling for survive under the realty market’s depression, and made quick profits outside its main business by purchasing and reforming Guangzhou Yishun Company. Last but not the least, the government’s policy regarding to business income tax deduction has also made its fair contribution.

From the lights of the above, investors are able to understand that the management of the company has sharp business vision and effective implementation tools, along with its strong capital supports, Poly Real Estate Group Co. Ltd. has the ability to transfer the market pressures into its competitive advantages, thus, I assume in the second half of the year, the company will continuously presenting ever greater performance.

Therefore, I strongly recommend this stock to investors as it is now a good opportunity to buy-in and expecting fruitful rewards by the end of this year, and it is a comparatively safe investment for long-term investors as well. For existing shareholders, one can either enlarge holdings, or play it safe by sticking with what they already have. The expectant price is marginally RMB 61 Yuan in long term.

Anhui Jianghuai Automotive Co. Ltd. - Received Big Orders From Chinese Army

Sun, 03 Aug 2008 05:48:41 EST

Anhui Jianghuai Automotive Co. Ltd. - Received Big Orders From Chinese Army - by liz

Anhui Jianghuai Automotive Co. Ltd.

Public (SHA: 600418)

Company Facts

Anhui Jianghuai Automotive Co. Ltd. was started in the year 1999 by Anhui Jianghuai Automotive Group Co. Ltd., Malaysia Ankasha Machinery Co. Ltd., Anhui Province Technology Industrial Investment Co. Ltd, Anhui Province Machinery Equipment Corporation, and Wuhuan Tianyu Information Industry Co. Ltd.

The company’s main business is development, manufacture, and sales of automotives, auto chassis systems, and other auto parts such as gear box, etc. The productivity of vehicles has exceeded 200,000 per year, while sales of trucks are over 100,000 per year, which ranks the second from top in the industry. Notably, the sales of heavy trucks has increased by 236% in year 2007 comparing with the year before that, and thus the production of heavy trucks has become the company’s new business focus as its productivity has been approaching the limit. It is said that the company plans to invest in a heavy truck manufacturing project which can produce 40,000 heavy trucks per year.

In addition, the company has outstanding technological advantages in the industry, and is referred to as high-tech enterprise of ‘National Torch Plan’ by China Technological Chamber. The company has its Research & Development Centre co-operating with Shanghai Tongji University, Hefei Industrial University; the company also has its design centre in Italy and Japan.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Anhui Jianghuai Automotive Group Co. Ltd. Holding company, percentage of rights and interests: 34.68%

JAC-Japan Design Centre, Holding subsidiaries, percentage of ownership: 100%

JAC-Italy Design Centre, Holding subsidiaries, percentage of ownership: 100%

Hefei Huizhi Import & Export Trading Co. Ltd. Holding subsidiaries, percentage of ownership: 60%

Anhui Jianghuai Fuzhen Vehicle Body Equipment Co. Ltd. Holding subsidiaries, percentage of ownership: 50%

Hefei Jianghuai Casting Co. Ltd. Holding subsidiaries, percentage of ownership: 98%

Hefei Yunhe Johnson’s Car-seat Co. Ltd. Collaboration, percentage of rights and interests: 20%

Yanfeng Weishitong (Hefei) Auto Accessories Co. Ltd. Collaboration, percentage of rights and interests: 20%

Anhui Province National-owned Assets Regulatory Committee, Actual Controller, percentage of rights and interests: 70%

Anhui Ankai Automotive Group Co. Ltd. Same parent company

Hefei Jianghuai Automotive Pipe Co. Ltd. Same holding company

Hefei Auto-bridge Co, Ltd. Same holding company

Anhui Ankai Futianshuguang Auto-bridge Co. Ltd. Same holding company

Hefei Huiling Auto Parts Co. Ltd. Same holding company.

Liu’an Jianghuai Auto Gear Manufacture Co. Ltd. Same holding company.

Anhui Jianghuai Yinlian Heavy Engineering Equipment Co. Ltd. Same holding company.

Lujiang County Tongda Jianghuai Auto-body Accessories Co. Ltd. Same holding company

Anhui Jianqi Logistic Co. Ltd. Same holding company.

Hefei Jianghuai Automotive Co. Ltd. Same holding company.

Anhui Jianghui Coach Co. Ltd. Same holding company

Hefei Xingye Economical Development Co. Ltd. Same holding company.

Anhui Ankai Automotive Co. Ltd. Same holding company.

Anhui Jianghuai Special Purpose Vehicle Co. Ltd. Same holding company.

Huangshan Jianghuai Industrial Trading Co. Ltd. Same holding company.

Stock Health:

As on 1st August, 2008

Open: 4.12 High: 4.25 Low: 4.10 Close: 4.19 Vol.: 4,376,480

Business Performance:

Unite: RMB 10,000

Item	1st quarter 2008	2007	2006	2005
Main Business Income	437367.61	1427381.99	1083908.18	939465.88
Profit Margin	8380.33	41786.54	46017.40	56323.22
Net Profit Margin	7819.34	32845.76	37969.71	49775.34
Net Returns on Assets %	1.89	8.11	12.32	17.94

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-08-01	4.12	4.25	4.10	4.19	4,376,480
2008-07-31	4.40	4.42	4.15	4.16	5,703,397
2008-07-30	4.52	4.55	4.37	4.40	4,677,670
2008-07-29	4.48	4.56	4.32	4.45	8,679,952
2008-07-28	4.50	4.55	4.43	4.53	10,380,797
2008-07-25	4.52	4.59	4.45	4.50	10,454,860
2008-07-24	4.48	4.65	4.38	4.64	22,980,597
2008-07-23	4.46	4.77	4.46	4.55	40,987,495
2008-07-22	4.20	4.42	4.18	4.35	12,645,730
2008-07-21	4.10	4.25	4.04	4.25	8,514,121
2008-07-18	4.02	4.12	3.92	4.11	3,826,187
2008-07-17	4.00	4.06	3.90	4.00	4,324,276
2008-07-16	4.05	4.08	3.88	3.94	5,542,523
2008-07-15	4.26	4.27	4.07	4.08	5,861,181
2008-07-14	4.12	4.23	4.05	4.22	5,875,720
2008-07-11	4.24	4.26	4.09	4.14	4,950,335
2008-07-10	4.28	4.33	4.21	4.22	9,581,307
2008-07-09	4.25	4.38	4.25	4.33	9,180,559
2008-07-08	4.25	4.30	4.13	4.20	6,705,394
2008-07-07	4.07	4.26	4.05	4.24	8,525,057
2008-07-04	4.05	4.11	3.96	4.09	5,013,214
2008-07-03	3.87	4.09	3.84	4.07	5,423,423
2008-07-02	3.91	3.96	3.86	3.95	2,154,740
2008-07-01	3.99	3.99	3.85	3.87	2,199,018

Referring to the stock data above, recently the stock price experienced small-scale fluctuation while insignificant amount capital inflow that entered, then gradually got withdrawn without been able to principally change the stock performance. Personally, I believe this seven trading sessions’ attempt has shown that the capital inflow shows less confidence and interests toward this stock and the trend of continuous fluctuation will carry on for another round.

The market shows less interests in car makers because of in the industry is facing continuously pressure caused by price increase in energy, raw material, and labor costs and car sales is disturbed by many uncontrollable factors such as petrol price increase, environmental protection and traffic congestion problems, etc. However, the fast growing movement of the whole car industry is remaining untouched although the industrial profit margin is getting tighter.

Anhui Jianghuai Automotive Co. Ltd. has made its strategic movement by differentiating its products by targeting new market demands of heavy trucks. I believe as a more reliable, stable, and more effective means of transportation tool, heavy trucks have a stable increasing demand along with the booming of logistic industry, while improvement in the road transportation condition in China. Therefore, investors are suggested to pay attention to this stock in middle term, as the company is planning to improve its productivity of heavy trucks by investing in a new manufacture site. The huge amount investment maybe will influence the company’s cash flow and business performance in short term, however, it will bring rewards and enhance the competitive advantages of the company for long-term good.

In my opinion, this stock is worth paying attention to in the middle-term and long-term as the stock price is at a relatively low range and has obvious delay in growth while most other low-price stocks have taken-off lately. It is quite possible that this stock will be targeted by capital investors shortly while rumors such as the company has drawn interests of Black Stone Fund and good news such as the company has received big orders from Chinese Army have been released.

However, the above assumptions will not change the current trend of continuous fluctuation immediately, therefore, I would like to suggest investors to play safe. For short-term investors, it is not yet the right time to make fruitful gains. For existing shareholders, one should withdraw instantly if they have made profits; though, one should wait if yet making losses.

Beijing North Star Co. Ltd. - Influenced By The Government’s Macro-economical Adjusting Policies

Sat, 02 Aug 2008 12:52:21 EST

Beijing North Star Co. Ltd. - Influenced By The Government’s Macro-economical Adjusting Policies - by liz

Beijing North Star Co. Ltd.

Public (SHA: 601588)

Company Facts

Beijing North Star Co. Ltd. was initiated by North Star Group and officially established in the year 1997. At the same year, the company got listed in Hong Kong Exchange, and hence became the first China (mainland) realty company to be listed in Hong Kong Exchange. In 1998, the company transferred into joint venture shareholding company, and also got listed in Shanghai Stock Exchange in year 2004.

North Star Group built the Athlete’ Village in north of Beijing, and has sponsored the Beijing government in hosting of ‘1990 Asian Games’. The Athlete’ Village is a multiplex including hotel, conference hall, exhibition hall, office building, and service apartments. After the game, North Star Group started its business operations by leasing and renting existing real estates in the Athlete’ Village until Beijing North Star Co. Ltd. and took over its business and further expanded itself into comprehensive business fields, such as real estate development & management, rental & leasing, entertainment and restaurant business, hotels and department stores, etc.

The company has two exhibition halls, four premium hotels, five office buildings, thirteen service apartment buildings, and more, which covers total area of one million square meters. The company has actively participated to the 2008 Olympic Games and is also considered to be one of the biggest beneficiaries of the games as a total amount of RMB 3300 million Yuan extra rental incomes will be brought from the company’s four premium hotels and 22 media village apartments. In addition, the company’s other 7 hotels and 2 shopping malls will also be benefited during the games.

Financial Review

Related Companies

Beijing North Star Jianquan Shidai Mingmen Commercial Co. Ltd. Collaboration, percentage of rights and interests: 36%

Beijing North Star Group Company, Holding Company, percentage of ownership: 34.45%

Beijing Kanglegong Co. Ltd. Holding subsidiaries, percentage of rights and interests: 72.35%

Beijing Continental Meile Beer Restaurant Co. Ltd. Holding subsidiaries, percentage of rights and interests: 59.81%

Beijing North Star Conference Centre Development Co. Ltd. Holding subsidiaries, percentage of rights and interests: 100%

Beijing North Star Dongruan Information Technology Co. Ltd. Holding subsidiaries, percentage of rights and interests: 100%

Beijing North Star Real Estate Development Co. Ltd. Holding subsidiaries, percentage of rights and interests: 90.92%

Beijing Jiangzhuanghu Garden Villa Development Co. Ltd. Holding subsidiaries.

Beijing Xingrongji Real Estate Development Co. Ltd. Holding subsidiaries

Beijing North Star Information Communication Net Technological Services Co. Ltd. Holding Subsidiaries.

Changsha North Star Real Estate Development Co. Ltd. Holding subsidiaries, percentage of rights and interests: 80%

Beijing North Star Xinhe Real Estate Management Limited Liability Company. Holding subsidiaries, percentage of rights and interests: 80%

Beijing Ziyun Continental Restaurant Limited Liability Company

Beijing North Star Luzhou Commercial Trading Co. Ltd. Holding subsidiaries, percentage of rights and interests: 80%

Beijing Tianchengtian Real Estate Development Co. Ltd. Holding subsidiaries, percentage of rights and interests: 5%

Beijing North Star Xincheng Real Estate Management Limited Liability Company, percentage of rights and interests: 80%

Beijing National-owned Assets Regulatory Committee, Actual controller.

Stock Health:

As on 31July, 2008

Open: 7.30 High: 7.35 Low: 6.76 Close: 6.77 Vol.: 19,263,700

Business Performance:

Unite: RMB 10,000

Item	Jan-Mar 2008	2007	2006	2005
Main Business Income	167333.28	435410.53	284364.50	290651.96
Profit Margin	32693.99	69543.45	55617.89	32376.57
Net Profit Margin	13226.50	32813.14	33911.53	20903.41
Net Returns on Assets %	1.60	3.99	4.22	4.95

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-07-31	7.30	7.35	6.76	6.77	19,263,700
2008-07-30	7.50	7.60	7.14	7.30	13,460,900
2008-07-29	7.65	7.69	7.22	7.34	20,461,400
2008-07-28	7.80	7.94	7.68	7.77	18,537,600
2008-07-25	7.70	7.85	7.53	7.67	22,190,600
2008-07-24	7.40	7.84	7.40	7.81	30,441,800
2008-07-23	7.54	7.78	7.41	7.44	19,087,000
2008-07-22	7.59	7.87	7.49	7.51	24,038,100
2008-07-21	7.09	7.75	7.06	7.57	34,420,300
2008-07-18	7.10	7.32	6.52	7.31	36,963,300
2008-07-17	7.79	7.98	7.04	7.05	54,401,700
2008-07-16	8.60	8.69	7.82	7.82	57,536,600
2008-07-15	8.37	8.83	8.30	8.69	59,179,500
2008-07-14	8.20	8.44	8.10	8.27	24,983,000
2008-07-11	8.18	8.57	8.15	8.25	38,373,800
2008-07-10	8.15	8.86	8.00	8.36	64,696,400
2008-07-09	8.13	8.54	8.00	8.23	43,555,100
2008-07-08	8.15	8.37	7.80	8.21	54,800,200
2008-07-07	7.78	8.35	7.72	8.20	89,067,100
2008-07-04	6.88	7.59	6.76	7.59	56,515,900
2008-07-03	6.50	6.98	6.35	6.90	33,760,600
2008-07-02	6.55	6.60	6.30	6.52	18,949,100
2008-07-01	6.40	6.69	6.40	6.51	33,388,400

The company has built up a complete business chain from real estate development, investment, to operation and management. This unique business structure improves the company’s ability in risk resistant as the company is making profits while its real estate projects start rewarding, and secured with everyday stable cash flow from its real estate rental and department store retailing.

In the first half of year 2008, the company has achieved RMB 1.67 billion Yuan, which is marginally leveling with the previous year; however, the net profit margin has reduced by 25.7% due to undeserved rights and interests being claimed by few other shareholders in clearing two realty projects.

In my opinion, the loss has damaged the rights of the shareholders, and also has shaken the confidence in the market. That’s why the stock has gone down recently after the company’s half year performance reports were published. Of course, there are more reasons to explain the overall depression in the realty plate, as it was negatively influenced by the government’s macro-economical adjusting policies in order to prevent real estate bubbles and economic over-heat. Especially, the company’s main businesses are in Beijing only, effected by construction restrictions during and before the 2008 Olympic Games, many on-going real estate projects are delayed. Consequently, in term of investment returns in expectant period has become impossible. In my opinion, short term uncertainties of this stock has increased, and thus, shooing the investors to a safe distance.

I would like also like to throw some lights on the past one month stock performance; as there is a sign that capital inflow has flashed this stock and withdrawn already, as the current shareholders are mostly individuals. The volume was increased dramatically, and then shrinked down accordingly. Personally, I believe the main player has left before the so called ‘Olympic heat’ cool down in minds of individual investors and shareholders.

Therefore, my assumptions is, in short-term, this stock is not only unlikely give fruitful rewards anymore, but also it is very risky to hold as stock value is about RMB 5.61 Yuan, which is much less than the current stock price of RMB 7.50 Yuan. I believe existing shareholders should withdraw and look for better investment elsewhere, and investors should be careful while making their investment decisions.

The above suggestions suits for those middle term and long term investment decision makers as well. The company shows 76.4% increase in its real estate sales, which seems to contribute cash flow in short term, however, I believe it is on costs of future returns from its rental and leasing business. In addition, the company’s new projects in year 2008 and 2009 will exceed 720,000 square meters, which demands large amount capital investment. Therefore, the uncertain risks are very high, especially, under discouragement from the government’s policy and overall depressing industry phenomenon.

Beijing Bashi Media Co. Ltd. - Close Attention Needed

Fri, 01 Aug 2008 14:46:10 EST

Beijing Bashi Media Co. Ltd. - Close Attention Needed - by liz

Beijing Bashi Media Co. Ltd.

Public (SHA: 600386)

Company Facts:

Beijing Bashi Media Co. Ltd. was initiated by Beijing Public Transportation Corporation, Beijing Urban Development Co, Ltd, Beijing North Star Company Limited, and Beijing Huanxun Group on June, 1999. The company was known as Beijing Bashi Co. Ltd. before April 2008.

Formerly, the company was mainly engaged in urban bus transportation services until the poor profitability drove the company to divestiture the non-profitable public transportation segment in order to improve its overall business performance and to stay in the game. The company has made its strategic movements by transferring its main focus on three sections: public transportation’s advertising (including vehicle-body advertising and bus station advertising), vehicle services (including driving school, car rental, vehicle 4S shop, garage chain-store, and vehicle disassemble shops) and tourism services (including travel agency, tourist information center and travel vehicle services).

Beijing Bashi Media Co. Ltd. owns massive media resources, such as outdoor media as 18,000 bus body media, 5000 illuminating billboards in bus stations, more than 2000 square meters of outdoor advertising boards, etc. and other media avenues like bus ticket, electronic displaying screen inside bus, mobile TV inside bus etc. The media business has achieved net profit margin of RMB 24.3 million Yuan in year 2007, and become the core business of the company.

Beside the core business in media field, the company’s vehicle services and tourism services business also have good potential to grow, although the competition in the market place is getting fierce.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Beijing Public Transportation Corporation, Holding Company, percentage of rights and interests: 55%

Beijing Public Transportation Jie’an Car Rental Co. Ltd. Shareholding subsidiaries, percentage of ownership: 100%

Beijing Longyuan Industrial Trading Co. Ltd. Shareholding subsidiaries, percentage of ownership: 98.86%

Beijing Bafangda Passenger Transportation Limited Liability Company. Shareholding subsidiaries, percentage of ownership: 100%

Beijing Public Transportation Advertising Limited Liability Company. Shareholding subsidiaries, percentage of ownership: 99%

Beijing Tianxiang International Travel Agency Co. Ltd. Shareholding subsidiaries, percentage of ownership: 100%

Beijing City Public Transportation Driving School Co. Ltd. Shareholding subsidiaries, percentage of ownership: 84%

Beijing Bashi Car Rental Limited Liability Company, Shareholding subsidiaries, percentage of ownership: 98.78%

Beijing City People’s Government National-owned Assets Regulatory Committee, Actual controller, percentage of rights and interests: 100%

Beijing Public Transportation Xinfeng Technological Service Company, Same Shareholding Company.

Beijing Public Transportation Guang’an Commercial Trading Group, Same shareholding company.

Beijing Public Transportation Liangjie Station Equipment Co. Ltd. Same shareholding company.

Beijing Public Transportation Sida Terminal Investment Co. Ltd. Same shareholding company

Beijing Urban Coach Co. Ltd. Same shareholding company

Beijing Transportation Card Co. Ltd. Same shareholding company.

Stock Health:

As on 30 July, 2008

Open: 12.08 High: 12.20 Low: 11.62 Close: 11.83 Vol.: 5,057,279

Business Performance:

Unite: RMB 10,000

Item	Jan-Mar 2008	2007	2006	2005
Main Business Income	14916.97	194754.23	266331.74	238077.28
Profit Margin	2666.92	6735.23	-31533.26	-13871.29
Net Profit Margin	1982.40	4764.38	-33401.25	-13671.68
Net Returns on Assets %	2.53	6.06	-45.20	-12.79

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-07-30	12.08	12.20	11.62	11.83	5,057,279
2008-07-29	12.68	12.68	11.82	11.86	10,669,280
2008-07-28	12.53	13.08	12.51	12.73	11,589,050
2008-07-25	12.19	12.60	12.12	12.31	7,782,822
2008-07-24	11.96	12.49	11.96	12.35	8,459,589
2008-07-23	12.25	12.45	11.90	11.94	7,575,850
2008-07-22	12.38	12.84	12.15	12.17	11,741,036
2008-07-21	11.73	12.50	11.45	12.37	12,551,310
2008-07-18	11.00	11.84	10.50	11.72	13,619,496
2008-07-17	12.11	12.39	10.86	10.90	14,009,006
2008-07-16	13.21	13.55	12.07	12.07	12,395,355
2008-07-15	13.91	14.05	12.92	13.41	14,938,249
2008-07-14	13.20	13.95	13.10	13.81	12,968,872
2008-07-11	13.03	13.72	12.95	13.46	14,245,561
2008-07-10	14.40	14.67	13.18	13.31	22,313,959
2008-07-09	14.68	14.97	14.10	14.41	18,904,116
2008-07-08	14.00	15.15	13.70	14.88	24,409,698
2008-07-07	14.99	15.49	14.10	14.28	30,085,558
2008-07-04	13.03	14.44	12.96	14.11	23,945,260
2008-07-03	12.24	13.49	12.00	13.34	24,257,091
2008-07-02	11.28	12.41	11.26	12.41	23,469,515
2008-07-01	11.75	11.80	11.00	11.28	10,103,068
2008-06-30	10.49	11.83	10.49	11.80	13,849,970
2008-06-26	11.89	12.21	11.36	11.65	13,410,814
2008-06-25	11.06	11.95	10.90	11.90	16,769,100

It has been reported that in the first quarter of year 2008, the main business income of the company has increased by 57% corresponding to same period of previous year. Interestingly, the net profit margin in the first quarter of year 2008 has decreased by 17% comparing with the same period of previous year. It is caused by total amount of RMB 4.4 million Yuan charges from its parent company for compensating media resources which provided by the parent company in the company’s first time reformation. The charges have also devalued the ‘value per share’ of the stock and somehow shaken the confidence of its shareholders and investors.

Under these circumstances, the company plans to outsource its outdoor advertisement business to one of the international media. Personally, I believe this movement, if at all, is highly likely to draw attentions from major stock market players and principally change the current depressing situation of this stock although the news has not been published and the name of the international media giant is yet unknown.

However, my key concern while making investment suggestion is whether the company can make the most out of its media resources in the near future in order to make profits after being charged by the parent company. If the answer is no, then, the reformation of the company is considered as unsuccessful and the stock is highly risky to invest in; if the answer is yes, then, the overall performance of the company will be getting better, and in middle term, the stock is likely to hike. Hence, I would like to suggest investors to pay close attention to the progress of international media operators cooperating with Beijing Bashi Media Co. Ltd.

Moreover, according to the latest news, after transferred its public transportation business to Shanghai Jiushi Company, Beijing Bashi Media Co. Ltd. has second time reformed its business structure by handling its taxi and car rental business to Jhonsons’ Holding Co. Ltd.

In my opinion, after two times assets reformations, the company has transferred itself from a solo business structure company in public transportation services into a comprehensive business structure company that has media as main business, vehicle services and tourism services as supporting businesses. Thereafter, the company has become more profitable and more risk resistant.

We notice that in recent times, there were enormous fluctuations regarding the stock price influenced by the company’s two times asset- reformations. Within a few trading sessions, 30% devalue in the stock price has occurred, which together with the previous stock price decrease caused by the market depreciation, has decreased the stock by 2/3 in value compare with its peak price, which makes it an unbeatable ‘high performance & low stock price’ stock. In addition, as the company exclusively holds huge media resources of Beijing’s public transportation, it is now referred to as one of the Olympic plate stocks by the public. Personally, I assume that stimulating by 2008 Olympic Games, a growth in stock price will be seen in short-term.

To conclude, I believe that an opportunity has started turning up for investors and the stock’s short-term target price is about RMB 13.20 Yuan. Investors should make careful decision regarding the middle and long terms and pay close attention to the company’s movements. The middle term target price is suggested around RMB 12.80 Yuan.

Allied Properties (H.K.) Limited - Review

Fri, 01 Aug 2008 12:44:31 EST

Allied Properties (H.K.) Limited - Review - by liz

(Public, HKG:0056)

Allied Properties (H.K.) Limited

Company Fact

Allied Properties (H.K.) Limited was listed on the Hong Kong Stock Exchange in 1981 and renamed in 1987.

Allied Properties (H.K.) Limited, together with its subsidiaries, is mainly engaged in property investment, property development, hospitality-related activities and financial services. The Company is a subsidiary of Allied Group Limited. Its interests in property investment and development, and hospitality-related activities in Hong Kong are mainly held through its wholly owned subsidiaries or the 50%-owned Allied Kajima Limited, and in The People's Republic of China are held through Tian An China Investments Company Limited. The Company's financial services business is mainly conducted through its 58.64% holding in Sun Hung Kai & Co. Limited. The Company's segments include investment, broking and finance; Consumer finance; Healthcare; property rental, hotel operations and management services, and sales of properties and property-based investments.

It is headquartered in Wanchai, Hong Kong and the Company has nearly 34,00 employees.

Major Subsidiaries:

Allied Kajima Limited

Polyking Services Limited

Protech Property Management Limited

Sun Hung Kai & Cp., Ltd

Tian An China Investments Company Limited

Quality Health Care Asia Limited

Yu Ming Investments Limited

Financial Overview

1.12
-0.03 (-2.61%)
Aug 1 - Close

Open: 1.14 Mkt Cap: 6.33B P/E: 3.07 Dividend: -

High: 1.16 52Wk High: 3.70 F P/E: - Yield: -

Low: 1.12 52Wk Low: 1.02 Beta: - Shares: 5.65B

Vol: 731,800.00 Avg Vol: - EPS: 0.37 Inst. Own: -

Key Stats & Ratios

	Quarterly (Dec '07)	Annual (2007)	Annual (TTM)
Net Profit Margin	59.83%	54.62%	54.62%
Operating Margin	68.18%	61.20%	61.20%
EBITD Margin	-	66.51%	63.99%
Return on Average Assets	12.20%	12.21%	12.21%
Return on Average Equity	29.60%	22.96%	22.96%
Employees	3,396	-	-

Date Open High Low Close Volume

31-Jul-08 1.16 1.18 1.12 1.15 1,030,000

30-Jul-08 1.05 1.05 1.05 1.06 4,000

29-Jul-08 1.14 1.15 1.08 1.08 120,000

28-Jul-08 1.08 1.10 1.08 1.09 28,000

25-Jul-08 1.13 1.13 1.10 1.10 170,000

24-Jul-08 1.12 1.18 1.11 1.15 132,000

23-Jul-08 1.17 1.18 1.11 1.11 331,199

22-Jul-08 1.05 1.16 1.05 1.13 346,000

21-Jul-08 1.06 1.10 1.06 1.08 316,000

18-Jul-08 1.05 1.08 1.05 1.07 136,000

17-Jul-08 1.07 1.11 1.07 1.11 152,000

16-Jul-08 1.06 1.07 1.06 1.07 404,000

15-Jul-08 1.15 1.15 1.05 1.07 148,000

14-Jul-08 1.13 1.14 1.06 1.07 530,000

11-Jul-08 1.16 1.22 1.12 1.14 1,337,640

10-Jul-08 1.20 1.24 1.19 1.22 36,000

9-Jul-08 1.18 1.20 1.18 1.18 5,234,000

8-Jul-08 1.27 1.27 1.20 1.20 2,592,000

7-Jul-08 1.24 1.24 1.24 1.24 66,000

4-Jul-08 1.16 1.24 1.16 1.24 4,594,000

3-Jul-08 1.15 1.24 1.15 1.23 3,166,000

2-Jul-08 1.22 1.25 1.16 1.23 308,000

30-Jun-08 1.27 1.27 1.18 1.21 888,000

27-Jun-08 1.22 1.24 1.18 1.23 1,314,000

Allied Properties has recorded revenues of HK$4,868.8 million (nearly $624.1 million) in the fiscal year ended December 2007, compared to the revenues of HK$2,166.4 million (nearly $277.7 million) in 2006. On another hand, its operating profit was HK$3,940.2 million (nearly $505.1 million) in the fiscal year 2007, compared to an operating profit of HK$1689.8 million (nearly $216.6 million) in 2006. Plus, its net profit was HK$2,253.7 million (nearly $288.9 million) in fiscal year 2007 when compared to the net profit of HK$ 1,047.8million (nearly $134.3 million) in 2006.

Hunan Chendian International Development Share-holding Limited Company - Suffers Double Loss

Thu, 31 Jul 2008 09:55:47 EST

Hunan Chendian International Development Share-holding Limited Company - Suffers Double Loss - by liz

Hunan Chendian International Development Share-holding Limited Company

Public (SHA: 600969)

Company Facts:

Hunan Chendian International Development Share-holding Limited Company (Chendian International) is one of the earliest established large-scale local electricity generation and independent power distribution enterprise in China (mainland). The company is located in Chenzhou region, Southeast of Hunan province, where geographically the region, best suits the purpose, as it contains fertile small hydropower resources.

Chendian International was approved by People’s Government of Hunan Province, and initiated in year 2000 by United Nations Small Hydropower Centre and 4 local national-owned Hydropower Companies from Yizhang County, Linwu County, Rucheng County, and Yongxing County.

The discovering and utilizing of clean and renewable resource, such as hydropower, is greatly supported by Chinese government’s sustainable developing policies. The company, being eco-friendly electricity generating and distributing company, therefore, has been secured with stable market and considerable profit margin.

Moreover, the company has made its strategic movement to enter the industrial gas supply field by investing USD 3 million to purchase 45.5% shares of Changzhou Zhongtianyi Gas Co. Ltd and thus become the holding company. The company’s new project in Tangshan, Hebei province has started operation and increasingly contributes profits. Meanwhile, another new project in Xinyu region of Jiangxi Province has also started construction.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Chenzhou City People’s Government National-owned Assets Regulatory Committee, Holding Shareholder, percentage of rights and interests: 19.39%

Hunan Huiyin International Investment Co. Ltd. Shareholding subsidiaries, percentage of rights and interests: 99.18%

Hunan Chendian International Hydropower Investment Co. Ltd, Shareholding subsidiaries, percentage of rights and interests: 98.72%,

Yizhang Runfeng Resource Development Co, Ltd. Shareholding subsidiaries, percentage of rights and interests: 81%

Chenzhou Huihuang e-Media Co. Ltd. Collaboration, percentage of rights and interests: 45%

Chenzhou Wanguo Grand Hotel Limited Liability Company, Collaboration, percentage of rights and interests: 17.60%

Chenzhou Chendian Technology Co. Ltd. Collaboration, percentage of rights and interests: 49%

Chenzhou City People’s Government, Actual Controller.

Stock Health:

Highest in past 52 weeks: 12.39

Lowest in past 52 weeks: 4.16

As on 29 July, 2008

Open: 5.13 High: 5.46 Low: 5.08 Close: 5.46 Vol.: 12,290,662

Business Performance:

Unite: RMB 10,000

Item	Jan-Mar 2008	2007	2006	2005
Main Business Income	24083.60	135243.37	102329.14	83430.22
Profit Margin	-26080.22	13158.21	273.36	9406.01
Net Profit Margin	-27851.62	5154.82	-5724.61	4309.31
Net Returns on Assets %	-80.02	8.23	-9.96	6.77

Daily Stats (last one month):

52 weeks highest: 12.39 Lowest: 4.16

Date	Open	High	Low	Close	Vol.
2008-07-29	5.13	5.46	5.08	5.46	12,290,662
2008-07-28	4.82	4.98	4.80	4.96	1,973,540
2008-07-25	4.77	4.83	4.75	4.80	873,649
2008-07-24	4.78	4.86	4.73	4.85	1,384,882
2008-07-23	4.88	4.89	4.75	4.76	1,038,000
2008-07-22	4.85	4.89	4.75	4.84	1,859,870
2008-07-21	4.62	4.90	4.60	4.85	2,906,030
2008-07-18	4.48	4.63	4.36	4.60	1,553,607
2008-07-17	4.51	4.62	4.35	4.38	1,092,450
2008-07-16	4.72	4.72	4.38	4.48	1,463,941
2008-07-15	4.95	5.00	4.69	4.72	1,719,100
2008-07-14	4.92	4.92	4.75	4.91	1,268,293
2008-07-11	4.90	5.03	4.74	4.86	1,782,894
2008-07-10	4.88	5.08	4.84	4.91	2,249,366
2008-07-09	4.80	4.97	4.76	4.95	1,912,929
2008-07-08	4.75	4.86	4.66	4.82	1,806,512
2008-07-07	4.54	4.78	4.50	4.77	2,031,284
2008-07-04	4.53	4.67	4.46	4.53	1,026,880
2008-07-03	4.45	4.63	4.28	4.53	1,309,612
2008-07-02	4.38	4.53	4.36	4.45	593,974
2008-07-01	4.59	4.59	4.38	4.41	779,076
2008-06-30	4.39	4.62	4.23	4.60	1,481,689

The company’s eco-friendly hydropower project not only is supported by government’s policy but also will bring more profits to the company once the electricity price is being raised in the near future. However, the generation of small hydropower totally depends on the natural conditions, hence, when self-generated electricity is not sufficient, the company will have to purchase electricity to compensate its electricity supply. The rising electricity price has increased pressure in the company’s operation.

Nevertheless, the company’s strategy is getting clearer and business structure is also getting sounder. It started to make profits in year 2007. Unfortunately, the company has suffered major loss of RMB 278 million Yuan caused by the snow storm in the first quarter of year 2008. The snow storm has damaged many infrastructures in effected areas, it left the electricity distributing networks no exception. Although the company has received a compensation of RMB 23 million Yuan from the Beijing Government as purpose of rebuilding the electricity networks, it will not able to change its financial situation in a short time as the company suffered double loss from the damage of power distributing infrastructures and income loss due to large-area electricity cut.

I personally assume that, within a year or two, the company will remain within the red line, and also bank loan payment will make it even harder to control the financial risks. It has been reported that the company’s business performance ranked the third from top out of 44 listed companies in year 2007, dropped to the bottom in the first quarter of year 2008’s industrial performance ranking.

To conclude, from single product – electricity supply, to enter industrial gas supply field, the company has made its commitment. However, the natural disaster has changed the company’s overall situation and put it into extreme high financial risks and difficulties in its operation. The company is facing ever hard circumstances with respect to recover itself from the massive damage caused by natural disaster. Personally, I would not recommend investors to undertake middle or long term investment.

I would like to throw some lights on the abnormality in the last trading session, which investors are suggested to pay good attention to. The volume has been enlarged more than 6 times and stock price also went up notably, while there was no outside motivation, hence, I consider this as a sign of big players inserting capital. I assume that once individual investors following up, the big players will immediate withdrawn capital with pocket profits in short time. Therefore, investors should not be confused and blindly follow up while existing shareholders should make a quick exit.

Theoretically, this stock is on high-risk segment, and current stock price is higher than its market value. It is predicable that it will take relatively long time for the company to get back into the game. Therefore, existing shareholders are suggested to cut the stock and look for more compensation elsewhere rather than holding and waiting. Investors should not blindly follow the current trend and make their investment decision, as there are very slim chances for individual investors to gain and the risk is too high to bid on.

Shanghai Jinjiang International Industrial Investment Co. Ltd. - Middle & Long Term

Wed, 30 Jul 2008 06:17:35 EST

Shanghai Jinjiang International Industrial Investment Co. Ltd. - Middle & Long Term - by liz

Shanghai Jinjiang International Industrial Investment Co. Ltd.

Public (SHA: 600650)

Company Facts:

Shanghai Jinjiang International Industrial Investment Co. Ltd. (Jinjiang Investment) was known as Shanghai New Jinjiang Grand Hotel, and was established by Shanghai City Jinjiang (Group) Company in 1984. In 1992, the company transferred itself into shareholding limited company, and listed A-shares in Shanghai Stock Exchange. After one year, the company’s B-shares also launched in the same market. The ruling shareholder is Jinjiang International (Group) Co. Ltd.

The company is mainly engaged in vehicle services, tourism services, and logistic industry. Jinjiang Auto, one of the company’s subsidiaries, has over 8000 vehicles in operation, and is the leading company in car rental and leasing industry in Shanghai. One of the company’s shareholding subsidiaries, Jinhai Jieya International cargo transportation company has 32 branches in cooperation networks covering all globally well-known logistic company, while the company’s another shareholding subsidiary, Shanghai Pudong warehouse Co. Ltd. has monopoly competitive advantages in airport logistic business.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Shanghai Volkswagen Xinya Taxi Co. Ltd. Shareholding company

Jinhai Jieya International Cargo Transportation Co. Ltd. Shareholding company

Jinjiang International (Group) Co. Ltd. Holding Company, percentage of ownership: 38.54%

Shanghai Wuqing Fridge-storage Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang Business - trip Auto Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 50%

Shanghai Jinyue Auto Consulting Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Meierjie New Jinjiang Dry-clean Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 75%

Shanghai JIading Jinjiang Auto Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 70%

Shanghai Jinjiang Public Transportation Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 93.92%

Shanghai Wusong Luoji Fridge-storage Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Rileng Food Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 50%

Shanghai Pacific Passenger Transportation Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang Express Passenger Transportation Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinmao Auto Sale Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 50%

Shanghai Toyota Auto Servicing Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang Auto Rental & Leasing Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Huayangnianhua Advertising Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 80%

Shanghai Nanpu Bridge Food Wholesales Trading Market Operation & Management Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 95%

Shanghai Pudong Friendship Auto Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 87.83%

Shanghai Jinzhen Electronics Technology Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Business-trip Investment Consulting Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjia Auto Trading Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai ShangHai Food Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 95%

Shanghai Jinyong Auto Repairing & Servicing Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 80%

Shanghai Zhenxing Taxi Management Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai China-Petroleum Jinyou Petrol Operation Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 76%

Shanghai Jinjiang Auto Service Co. Ltd. Shareholding Subsidiaries, percentage of ownership: 95%

Shanghai International Cooler Logistic Development Co. Ltd. Shareholding Subsidiaries, percentage of ownership: 95%

Shanghai Jinhai Jieya Logistic Management Co. Ltd. Shareholding Subsidiaries, percentage of ownership: 65%

Stock Health:

Highest in past 52 weeks: 18.39

Lowest in past 52 weeks: 7.65

As on 29 July, 2008

Open: 9.76 High: 9.77 Low: 9.55 Close: 9.63 Vol.: 965,257

Business Performance:

Unite: RMB 10,000

Item	Jan-Jun 2008	2007	2006	2005
Main Business Income	82156	161939	135907	327988
Profit Margin	22982	40759	35050	36765
Net Profit Margin	17529	31259	28082	25095
Net Returns on Assets %	10.46	17.50	18.25	13.21

Daily Stats (last one month):

Date

Open

High

Low

Vol.

2008-07-29	9.76	9.77	9.55	9.63	965,257
2008-07-28	9.85	10.03	9.67	9.91	1,741,228
2008-07-25	9.70	9.92	9.65	9.78	1,802,778
2008-07-24	9.55	9.92	9.51	9.88	2,407,859
2008-07-23	9.72	9.77	9.42	9.48	2,003,275
2008-07-22	9.51	9.85	9.50	9.63	3,047,853
2008-07-21	9.00	9.67	8.91	9.55	3,661,889
2008-07-18	8.55	9.18	8.55	9.17	2,301,492
2008-07-17	8.60	8.70	8.31	8.38	555,500
2008-07-16	8.80	8.96	8.30	8.44	861,371
2008-07-15	9.18	9.29	8.78	8.87	1,167,400
2008-07-14	9.02	9.16	8.90	9.14	582,152
2008-07-11	9.15	9.28	8.94	9.02	1,033,964
2008-07-10	9.30	9.45	9.20	9.21	1,576,976
2008-07-09	9.28	9.46	9.11	9.44	2,095,032
2008-07-08	9.33	9.33	9.01	9.22	1,612,621
2008-07-07	8.82	9.43	8.80	9.30	1,990,220
2008-07-04	8.48	8.81	8.48	8.80	1,096,750
2008-07-03	8.28	8.75	8.18	8.63	1,018,050
2008-07-02	8.31	8.46	8.18	8.31	489,687
2008-07-01	8.36	8.45	8.18	8.26	512,816
2008-06-30	8.15	8.57	8.15	8.39	770,511
2008-06-27	8.60	8.66	7.98	8.18	1,026,480

In the past eight trading sessions, Shanghai and Shenzhen Stock Exchange markets have been carrying on the pervious trends of rising stimulated by the growth of banking and realty plates. Especially, realty plate shows overall outstanding performance, I believe that this trend will show its continuity in couple of weeks.

Shanghai Jinjiang Industrial Investment Co. Ltd. has shown stable increase regarding to its stock price. I would like investors to pay attention to this particular stock and make their investment decision because after fairly long time fluctuations, the share price has dropped to below RMB 10 Yuan for now, comparing the theoretical value of RMB 18.78 Yuan; it seems that a good investment opportunity has started presenting for a middle-term.

Personally, I assume that the capital-inflow has started withdrawing as in the past three trading sessions; volume shows gradually reduction without too much leap-drop in stock price, which is theoretically considered as careful movements by the big player. Therefore, in my opinion, short-term investors are unlikely to win fruitful through this stock, but this is a chance for winning shareholders to reduce their holding on an expected price. I would like to suggest the short-term target price as not exceed RMB 10.39 Yuan as high capital pressure seems ahead over this price.

However, in a middle-term or long-term, this stock is a safe choice to invest because of the overall business performance of the company is excellent and business income is very stable. Especially, after trading with its holding company, Jinjiang Investment has entered auto services and logistic industry. The profitability of the company has been largely improved, and the business structure of the company is sounder and quite risk-resistant. I would also like to suggest a target price of RMB 18-19 Yuan for middle-term investment.

Jinjiang International Hotels Development Co. Ltd. - Disney In Shanghai To Boost Hotel Market?

Tue, 29 Jul 2008 12:53:39 EST

Jinjiang International Hotels Development Co. Ltd. - Disney In Shanghai To Boost Hotel Market? - by liz

Jinjiang International Hotels Development Co. Ltd.

Public (SHA: 600754)

Company Facts:

Shanghai Jinjiang International Hotels Development Co. Ltd. (Jinjiang Hotels) belongs to Shanghai Jinjiang Hotel Group, and is one of the most well-known leading companies in hotel and restaurant industry in China (mainland). The company was referred to as Shanghai Xinya (Group) corporation. On June, 1993, the company transferred into limited company and listed in Shanghai Stock Exchange. Consequently, Jinjiang Hotels B shares also launched to the public at the end of year 1994.

Jinjiang Hotels has four segments in its business: hotel investment, hotel management, economical chain-Inn, and KFC restaurants in Shanghai, and its neighboring cities: Hangzhou, Wuxi, and Suzhou.

There are 85 hotels (3-star and above) were invested or under the management of Jinjiang Hotels, most of them located in the heart of Shanghai downtown, the profit margin of the company’s hotel investment and hotel management was 81.9% and 91.7% separately in year 2007. Moreover, the company’s relatively new business, economical chain-inn, namely ‘Jinjiang Star’, has expanded rapidly, over 38,000 rooms in 280 locations country-wide, and achieved total income of RMB 414 million Yuan in year 2007. In addition, KFC restaurants also had outstanding performance in last year, for example, KFC in Shanghai’s income has increased 19% and contributed RMB 80 million investment return in year 2007.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Wuxi KFC Co. Ltd. Shareholding Company, percentage of ownership: 8%

Suzhou KFC Co. Ltd. Shareholding Company, percentage of ownership: 8%

Shanghai Yoshinoya Fast food Co. Ltd. Shareholding Company, percentage of ownership: 40%

Shanghai Jing’an Bakery Co. Ltd. Shareholding Company, percentage of ownership: 30%

Australian Xinya Dabao Fast food (chain) Co. Ltd. Shareholding Company, percentage of ownership: 55%

Hangzhou KFC Co. Ltd. Shareholding Company, percentage of ownership: 8%

Shanghai Xinya Furama Restaurant Co. Ltd. Shareholding Company, percentage of ownership: 41%
Hotel Inter-Continental Pudong Shanghai, Collaboration

Wuhan Jinjiang International Grand Hotel Co. Ltd. Collaboration

Shanghai Jinjiang-Del Interactive Co. Ltd. Collaboration, percentage of rights and interests: 50%

Shanghai Jinjiang International Investment Management Co. Ltd. Indirect shareholder, percentage of rights and interests: 3.48%

Shanghai Jinjiang International Hotels (Group) Co. Ltd. Holding Company, percentage of rights and interests: 50.31%

Shanghai Food & Drink Servicing Set-equipment Co. Ltd. Shareholding subsidiaries, percentage of ownership: 100%

Shanghai Jianguo Hotel Co. Ltd. Shareholding subsidiaries, percentage of ownership: 65%

Shanghai Jinjiang Tongle Food & Drink Management Co, Ltd. Shareholding subsidiaries.

Shanghai Jinjiang International Institute of Management. Shareholding subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang International Hotel Products Co. Ltd. Shareholding subsidiaries.

Shanghai Minhang Restaurant Co. Ltd. Holding subsidiaries, percentage of ownership: 98%.

Shanghai Xinya Food Co, Ltd. Holding subsidiaries, percentage of ownership: 5%

Shanghai Jinjiang International Food & Drink Investment Management Co. Ltd. Holding subsidiaries, percentage of ownership: 90%

Shanghai Hailun Hotel Co. Ltd. Holding subsidiaries, percentage of ownership: 66.67%

Shanghai Xinya Food & Drink Management Limited Liability Company, Holding subsidiaries, percentage of rights and interests: 90%

Jinjiang International Hotel Management Co. Ltd. Holding Subsidiaries, percentage of rights and interests: 99%

Jinjiang (Northern) Management Co. Ltd. Holding subsidiaries,

Jinjiang Star Inn Co. Ltd. Collaboration, percentage of rights and interests: 20%

Shanghai Jinjiang International Hotel Investment Co. Ltd. Collaboration, percentage of rights and interests: 20%

Shanghai Yangzi-river Grand Hotel Co. Ltd. Collaboration,

Shanghai Xinya Dajiale Food & Drink Co. Ltd. Collaboration, percentage of rights and interests: 50%

Shanghai Jinjiang Real Estate Management Co. Ltd. Other related company.

Jinjiang International (Group) Co. Ltd. Actual Controller, percentage of ownership: 100%

Stock Health:

As on 29 July, 2008

Open: 12.92 High: 13.00 Low: 12.69 Close: 12.49 Vol.: 24,825,090

Business Performance:

Unite: RMB 10,000

Item	1st quarter 2008	2007	2006	2005
Main Business Income	19989.09	83476.03	77693.70	90245.98
Profit Margin	8027.87	32455.49	26123.88	23797.11
Net Profit Margin	6888.70	26378.22	21761.69	19263.49
Net Returns on Assets %	1.96	5.30	10.67	9.76

Comparison

Shanghai Jinjiang Hotels Co. Ltd. vs. Chinese Hotel & Restaurant industry’ average

Unit: RMB 1 billion Yuan

Items	Total Assets	Ranking	Main Business Income	Ranking	Net Profit Margin	Ranking
CWTC	4.263	3	0.200	6	2.350	6
Realty Industrial Average	1.895		0.148		3.880

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-07-28	13.11	13.37	13.03	13.08	1,594,153
2008-07-25	13.18	13.25	13.03	13.10	1,904,177
2008-07-24	13.22	13.50	13.12	13.32	3,047,126
2008-07-23	13.34	13.40	12.90	13.09	2,909,673
2008-07-22	13.05	13.58	12.98	13.31	5,917,468
2008-07-21	11.94	13.12	11.83	13.12	8,809,742
2008-07-18	11.81	12.00	11.45	11.93	762,541
2008-07-17	11.98	12.07	11.31	11.58	719,937
2008-07-16	12.48	12.48	11.58	11.65	1,250,524
2008-07-15	12.51	12.96	12.23	12.57	2,296,233
2008-07-14	12.20	12.45	12.01	12.44	715,165
2008-07-11	12.16	12.46	11.88	12.16	1,206,695
2008-07-10	12.48	12.86	12.20	12.25	1,722,499
2008-07-09	12.68	12.76	12.40	12.65	1,792,430
2008-07-08	12.60	12.72	12.18	12.53	1,764,029
2008-07-07	12.08	12.87	12.08	12.69	2,447,922
2008-07-04	11.50	12.15	11.41	12.06	2,032,473
2008-07-03	11.25	11.70	10.90	11.59	1,482,045
2008-07-02	10.95	11.32	10.95	11.20	794,935
2008-07-01	11.10	11.27	10.85	11.01	1,336,706
2008-06-30	11.13	11.50	10.98	11.26	1,589,635
2008-06-27	10.98	11.14	10.60	10.90	1,537,550
2008-06-26	11.35	11.83	11.20	11.55	1,570,474
2008-06-25	10.78	11.36	10.75	11.35	2,062,860
2008-06-24	10.49	10.84	10.38	10.77	1,479,182

From the lights of the above, in the past 6 trading sessions, the volumes have been notably enlarged, started on 21 July, the capital inflow has undoubtedly made its move towards Jinjiang Hotels. Interestingly, the trading volume has enlarged by more than 10 times corresponding to 20 July, while the stock price also jump from RMB 11.83 Yuan to RMB 13.12 Yuan per share. It shows the strength and ambitious of the capital inflow. Continuously, in the following 5 trading sessions, the stock has been smoothly moving upwards. Although, it shows turbulence on 28 July, there is no evidence showing the capital inflow has been withdrawn. In my opinion, existing shareholders should pay close attention in this couple of days, and make quick money before the main players left.

Recently, I have notice that influenced by such rumors as Disney going to open new theme park in Shanghai, related stocks in transportations, accommodations, tourism, as well as retailing have shown aggressive boosting; it left Jinjiang Hotels no exception. It has been assumed that if Shanghai Disney opened, Jinjiang Hotels will have its net profit margin growth marginally by 15%. I believe, although the news has not officially published, Disney’s launch in Shanghai is just matter of time. Therefore, investors are suggested to pay attention to the progress in this affair as it will immediately stimulate the stock price and also will positively affect the middle-term business performance of Jinjiang Hotels.

There is certain positive news as well, 2010 Shanghai Exhibition will definitely bring up the hotel and restaurant, transportation, and tourism industry in Shanghai. Seeing this ever great opportunity, 60 on-going premium hotel projects will start operation by year 2010, which will contribute more than 21000 rooms. Together with existing 27200 rooms (4-star & 5-star) in Shanghai, the hotel market will be facing even more competition.

However, I think Jinjiang Hotels will be the winner in this competition, because the company has substantial competitive advantages lying in its rich hotel management experiences, matured brandings, strong management teams, and sophisticate networks, which are the core strength of a company and it, will lead the Jinjiang Hotels from a Chinese hotel leading company to an international-wide player. Personally, I believe, this stock is a preferable choice for investors for middle to long term investment.

China World Trade Center Co. Ltd. - Recommended Stock

Mon, 28 Jul 2008 10:57:04 EST

China World Trade Center Co. Ltd. - Recommended Stock - by liz

China World Trade Center Co. Ltd.

Public (SHA: 600007)

Company Facts

China World Trade Center, in Beijing is a multiplex of 38-floor office building, two 30-floor luxury apartment building, 5-star hotel (China Grand Hotel), 4-star hotel (World Trade Hotel), World Trade Exhibition Hall, World Trade Conference Hall and World Trade Department Store, etc.

The complex is in the heart of Beijing’s downtown financial district, which officially is referred to as CBD (Center Business District), contains 560,000 square meters of overall space. Together with the ongoing 330 meters in height, 80-floor China World Trade Center III project, the complex will cover 1.1 million square meters of total space by year 2009 and thus, become the world largest trade center complex.

There are more than 120 ‘Fortune 500’ enterprises have their office in CBD of Beijing, while 57 of them are in China World Trade Center. The exhibition hall has successfully hosted more than 400 fairs, and the conference hall carries about 4700 conferences every year.

China World Trade Center Co. Ltd. is a joint venture company of Hong Kong Kerry Xingye Co. Ltd. (subsidiaries of Malaysian Guo Brothers Group) and Xinguang Real Estate Management Center (subsidiaries of Chinese national-owned China Foreign Trade Consulting Company) since 1998.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

China Textile Group Co. Ltd. Indirect shareholder, percentage of rights and interests: 15%

Xinguang Real Estate Centre, Indirect shareholder, percentage of rights and interests: 22.92%

Beijing Jingcheng Mechanical Electronics Holding Co. Ltd. , Indirect shareholder, percentage of rights and interests:14.58%

Seanoble Assets Limited Company, Indirect shareholder, percentage of rights and interests: 100%

China Zhonghua Group Company. , Indirect shareholder, percentage of rights and interests: 15%

China World Trade Centre Co. Ltd. Holding Company, percentage of rights and interests: 80.14%
World Trade Center Hotel Management Co. Ltd. Holding subsidiaries, percentage of ownership: 95%

Beijing Shidai Net-star Technology Co. Ltd. Collaboration

China World Trade Investment Co. Ltd. Actual controller, percentage of ownership: 50%

Kerry Xingye Co. Ltd. Actual controller, percentage of ownership: 50%

World Trade Construction (Hong Kong) Co. Ltd. Same Holding Company

Shangrila (Asian) Co. Ltd. Actual controller, percentage of rights and interests: 100%

China Life Insurance (Group) Company. Actual controller, percentage of rights and interests: 32.50%

Stock Health:

As on 25 July, 2008

Open: 12.57 High: 12.80 Low: 12.26 Close: 12.57 Vol.: 5,035.637

Business Performance:

Unite: RMB 10,000

Item	1st quarter 2008	2007	2006	2005
Main Business Income	22008.87	88644.64	85332.88	77817.00
Profit Margin	11110.90	43662.40	36442.76	37054.52
Net Profit Margin	8300.84	28926.82	24207.86	24667.90
Net Returns on Assets %	2.02	7.20	6.29	9.63

Comparing

China World Trade Center Co. Ltd. vs. Chinese Realty Industry’ average

Unit: RMB 1 billion Yuan

Items	Total Assets	Ranking	Main Business Income	Ranking	Net Profit Margin	Ranking
CWTC	7.536	20	0.22	38	2.058	54
Realty Industrial Average	6.306		0.323		25.534

Note: There are in total 96 listed realty companies in Shanghai & Shenzhen Stock Exchange market

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-07-25	12.57	12.80	12.26	12.57	5,035,637
2008-07-24	12.10	12.98	11.78	12.78	9,122,967
2008-07-23	12.03	12.43	11.91	12.00	2,904,544
2008-07-22	12.00	12.60	11.86	11.89	4,216,871
2008-07-21	11.24	12.19	11.00	12.05	4,739,825
2008-07-18	11.00	11.28	10.48	11.25	4,102,555
2008-07-17	12.05	12.25	10.72	10.94	6,956,360
2008-07-16	12.57	13.08	11.56	11.90	5,490,076
2008-07-15	12.97	13.13	12.50	12.84	4,557,608
2008-07-14	12.50	12.86	12.42	12.83	3,184,204
2008-07-11	12.81	13.08	12.47	12.65	5,796,391
2008-07-10	12.98	13.60	12.80	12.91	7,550,392
2008-07-09	12.90	13.34	12.80	13.12	8,115,977
2008-07-08	12.86	13.18	12.28	12.93	9,405,091
2008-07-07	12.30	13.34	12.28	12.96	9,114,340
2008-07-04	11.67	12.35	11.50	12.13	5,879,365
2008-07-03	10.76	11.81	10.65	11.67	4,763,337
2008-07-02	10.95	11.35	10.80	11.03	2,150,600
2008-07-01	11.20	11.38	10.80	10.95	2,740,590
2008-06-30	10.39	11.29	10.21	11.28	3,685,983

From the lights of the above, the overall trend of the stock is going upwards in the past one month, however, small-scale fluctuations is involved throughout. In my opinion, this trend is likely to carry on, and hopefully the stock price will reach RMB 15 Yuan. I would like to suggest short-term investors to reduce their holdings around this price.

I would also like to take a review at the past performance of this stock. On June, 2007, this stock has once reached its historical peak at RMB 27.14 Yuan, after that, it has been continuously sliding until its new lowest point at RMB 10.11 Yuan. It is not a surprise as the overall stock market has also been cut into half during this corresponding time.

To have a close look at last two trading sessions’ of stock performance, the volume has been notably enlarged, which means the major capital inflow is inserting; meanwhile, the fluctuations seems to highlight that this stock is growing under pressure. The delay in deadline of China World Trade Center III project ( from year 2007 to the end of year 2008), which is caused by restrictions related to the 2008 Beijing Olympic Games is maybe one of the reasons that have shaken the market confidence. I assume, unless a stronger capital inflow getting involves, which it is rather unlikely, or the publishing of positive news regarding to the on-going project, the stock will remain the current trend - somewhat growing accompanied with turbulence. Therefore, I would personally suggest middle term and long term investors, to pay attention to such factors as the progress of China World Trade Center III project, office rental increase or decrease, construction of new office building in CBD area, etc., because this news will trigger a notable boost or drop in the stock price.

Unlike other real estate development companies who sale the property in order to make instant investment return, China World Trade Center’s business income is solely contribute by rental. This is maybe, in my opinion, the essential reason the rank of company’s business performance is not on pole position. Investors should not be confused by it because as a matter of fact, the company has long-term stable rental income from their target customers, who are mainly multi-national giants in the field of finance, insurance, telecom and consulting services.

The company has achieved business income of total RMB 886 million Yuan in year 2007, which counts 3.88% growth, correspondingly to the pervious year; and the parent company has made net profit of RMB 289 million Yuan, equal to 19.49% in growth, comparing the same with year 2006. In my assumption, after China World Trade Center III project finish and start its operation in year 2009, the company’s office rental will largely increase. In addition, according to latest news, the company is going to reach an agreement of purchasing the land beside its III project from Guohui Real Estate Co. Ltd. It shows the company’s aggressive strategy. Therefore, I strongly believe this is stock has superior value for not only short-term investors but also for middle and long-term investors.

Financial Street Holding Co. Ltd. - Taking Off Soon

Sun, 27 Jul 2008 17:28:03 EST

Financial Street Holding Co. Ltd. - Taking Off Soon - by liz

Financial Street Holding Co. Ltd.

Public (SZ: 000402)

Company facts

Financial Street Holding Co. Ltd. is mainly into selling and leasing high-end business real estate in Financial Street area of Beijing, including overall planning, land development, realty projects development and comprehensive management.

The Financial Street is considered by Chinese as their ‘Wall Street’, as most well-known Chinese financial giants exclusively have their headquarters on the street, such as China People’s Bank, China Securities Regulatory Committee, China Insurance Regulatory Committee, top four national-owned banks, China Life Insurance, China Telecom, China NetCom and China Mobile.

Financial Street Holding Co. Ltd. was originally from national-owned Chongqing Huaya Modern Papering Limited Liability Company. On May, 2000, Financial Street Group (parent company of Financial Street Holding Co. Ltd.) bought Chongqing Huaya Modern Papering Limited Liability Company’s entire legal-person shares from its parent company, Huaxi Packing Group Company, and shifted the company’s headquarter from Chongqing city to Beijing.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Beijing Financial Street Construction Group, Holding shareholder, percentage of rights and interests: 33.26%

Beijing Financial Street Leeds Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Beijing Financial Street Real Estate Consulting Co. Ltd. Holding subsidiaries, percentage of ownership: 80%

Financial Street Nanchang Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 67.36%

Beijing Shunping Dismantling & Moving Limited Liability Company. Holding subsidiaries, percentage of ownership: 51%

Beijing Financial Street Shopping Mall Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Nanchang World Trade Apartment Development Co. Ltd. Holding subsidiaries, percentage of ownership: 85%

Financial Street Jinmen (Tianjin) Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 99.96%

Beijing Financial Street Real Estate Manager Co. Ltd. Holding subsidiaries, percentage of ownership: 51%

Financial Street Nanchang Real Estate Manager Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Huizhou Sheraton Hotel Company. Holding subsidiaries, percentage of ownership: 100%

Financial Street Chongqing Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Chongqing Lanjing Real Estate Management Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Financial Street (Beijing) Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Beijing Mengke Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Beijing Banker Club Co. Ltd. Holding subsidiaries, percentage of ownership: 80%

Financial Street (Tianjin) Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 100%

Financial Street Jinta (Tianjin) Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 99.98%

Financial Street Huizhou Real Estate Co. Ltd. Holding subsidiaries, percentage of ownership: 70.41%

Beijing Xicheng District National-owned Assets Administration Committee. Actual Controller, Holding subsidiaries, percentage of rights and interests: 100%

Stock Health:

As on 25 July, 2008

Open: 8.95 High: 9.48 Low: 8.85 Close: 9.19 Vol.: 22,174,264

Business Performance:

Unite: RMB 10,000

Item	1st quarter 2008	2007	2006	2005
Main Business Income	77435.46	421436.19	348171.62	199976.62
Profit Margin	7500.08	111902.25	80118.67	62006.31
Net Profit Margin	7023.96	73018.68	53558.70	40889.55
Net Returns on Assets %	0.49	15.50	13.38	18.10

Daily Stats (last one month):

Date	Open	High	Low	Close	Vol.
2008-07-25	8.95	9.48	8.85	9.19	22,174,264
2008-07-24	8.68	9.28	8.68	9.15	27,244,478
2008-07-23	8.70	8.85	8.53	8.60	13,258,183
2008-07-22	8.60	8.99	8.51	8.62	13,780,301
2008-07-21	8.08	8.65	7.88	8.60	19,010,404
2008-07-18	7.72	8.20	7.65	8.09	12,829,659
2008-07-17	8.07	8.30	7.68	7.68	13,873,737
2008-07-16	8.45	8.50	7.75	7.93	22,830,970
2008-07-15	9.44	9.54	8.41	8.55	30,067,764
2008-07-14	9.16	9.46	9.00	9.34	14,726,342
2008-07-11	9.44	9.57	9.01	9.20	25,311,735
2008-07-10	9.55	10.08	9.40	9.57	31,180,539
2008-07-09	8.95	10.07	8.90	9.78	69,042,879
2008-07-08	8.85	9.26	8.55	9.15	45,502,695
2008-07-07	7.80	8.60	7.78	8.60	26,892,634
2008-07-04	7.60	7.92	7.53	7.82	13,103,610
2008-07-03	7.20	7.79	7.14	7.64	11,485,344
2008-07-02	7.25	7.41	7.10	7.40	10,563,222
2008-07-01	7.50	7.51	7.15	7.15	5,898,876
2008-06-30	7.64	7.79	7.27	7.35	7,922,229

In my opinion, financial and realty sector stocks will become hottest investing points by 4th quarter of year 2008. Recently in Shanghai and Shenzhen Stock Exchange, capital inflow have strongly inserted into three plates: banking, insurance and realty. However, banking and insurance plates have boosted sharply, while realty plate seems to lag behind, momentarily. Therefore, I believe, being leading real estate company, Financial Street Holding Co. Ltd. will lead realty plate and start picking up sooner than later. Investors are suggested to pay close attention to it as good increase could come across quiet soon.

My assumption is based on the company’s excellent business performance and most importantly, the very nature of its business focus, which is exclusively on top-end business real estates. Chinese government has principally controlled the growth of real estate industry from overheat in order to prevent Chinese economy suffering from realty bubbles and led to economical crisis, like it has happened to Southeast Asian countries in 1997, but the policies aim to residential real estate only. Therefore, although the Chinese government’s macro adjustment has caused the depression in realty industries, it has not negatively affected the business of Financial Street Holding Co. Ltd. at all; as a result this stock, is likely, to take off before other stocks in realty plates. Investors should not be confused.

Regarding the company’s business performance, since the company has very clear business strategy and exclusively targets most well-known Chinese enterprises and multi-national enterprises as its customers, therefore, its rental returns are assured while in sales section, and percentage increased in down payment has barely created any problem. The company is almost running a monopoly business.

The above daily status graph shows, in last two days the volume has been doubled, which means, main capital inflow has inserted into this stock. I personally assume, highly likely, this stock will be taken off very soon. Investors are suggested to immediate buy-in at any price under RMB 10 Yuan, ideally, the target price should marginally reach RMB 34 Yuan.

Personally, I would like to introduce this stock to middle and long-term investors as well, and assume the target price marginally at RMB 50 Yuan. Investors are suggested to pay attention to the company’s following possible movements: increasing leasing price, new project development, and of course, their published financial reports.