E-J Stocks July ( 29 - 31 ) - Aug ( 01 - 04 )
E-J Stocks July ( 29 - 31 ) - Aug ( 01 - 04 )
Aug 02
FibreChem Technologies Limited – 2QFY07 net profit surged 141.5% to HK$144m
• FibreChem, a chemical fibre manufacturer in Fujian province of China,
reported 88.3% increase in revenue for 2QFY07 y-on-y on stellar
performance from its microfibre leather products. The commencement of
the production of nylon-polyester at the end of May 2007 (capacity of
10,000 tonnes pa) also raked-in some revenue in the period reported.
Selling and distribution costs were cut by 6.6% y-on-y due to a drop in
marketing expenses and sales commissions for the long fibre products.
Improvements in the efficiency and utilization of the microfibre leather
contributed to a 141.5% jump to HK$144m.
• The Group plans to purchase a differential polyester chip production facility
with a production capacity of 100,000 tonnes pa compared to just 60,000
tonnes pa as planned initially. The management indicates strong orders for
its microfibre fashion leather products only in 2008 as developing the
leather apparel market requires more time than what they have previously
estimated. In addition, the Group aims to penetrate the automobile industry
with its products gaining customers’ acceptance in the furniture upholstery
leather sales.
• An interim dividend of HK$0.01 per share is recommended. WESTCOMB Research
