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Review: Sino-Env
By Pehon | June 20, 2007
Sino Env announced their 2007 Q1 results on 15th May 2007. Here is a review on their financial performance for Q1.
Their headline read “Sino-Env Delivers Strong First Quarter Results for Fy2007″. The first thing that hit me was this.
”Oh shit. Their profits growth probably didn’t meet expectations”
Indeed, a quick look at the financial results confirmed my suspicions. Revenue grew 62.1%, hence a profit before tax growth of 24.2% QoQ. Dispite this great growth in revenue, the company was only able to deliver a -2.3% change in EPS.
A quick recap on Sino-Env. Its stocks were listed on SGX last year 18 Apr 2006 at $0.50+ and it had a shares placement on 18 Jan 2007.
From their prospectus on 18 Apr 2006, the company has only spent 1/2 of the funds set for expansions, 1/3 of the funds on research, and 1/4 of the funds for marketing.
Likewise for the stock placement on the 18 Jan 2007. They have practically not used any funds for the Desulphurisation projects and research.
After the stock placement, this left Sino-Env’s stocks with too much uninvested money, and too many shares for calculation of the EPS.
