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Review: Sino-Env
By Pehon | July 17, 2007
The board has once again tried to shed some light on the recent weakness in share price.
With the CEO recently purchasing 2.5Million Sino-Env shares, and with the share price dropping from $3.3 to the current $2.7, what can the recent clarification by the board tell us?
“Extracted from the Business Times, “The Group is expecting flat first-half earnings growth and
a strong second half. In particular, it is mentioned that the problem of capacity constraint is
being solved by relocating the group’s manufacturing activities to a larger facility in Fujian
province, which will double its VOC capacity from three devices a month to seven devices by
August. This is expected to lift earnings in the second half, to even marking a year-on-year double digit growth.”
Our clarifications:
The Group is making our 1H2007 results announcement on the 14 August 2007. Barring anyunforeseen circumstances, for 2Q2007, the Group’s main subsidiary, Thumb Env-Tech Group(Fujian) Co., Ltd is expected to have completed 12 VOC devices at an average selling price ofapproximately RMB5m. This will anchor growth for 1H2007.With reference to the Group’s IPO prospectus dated 18 April 2006, the Group has disclosedthat our new plant, once completed, will increase our manufacturing capacity from 3 to 7 VOCdevices per month. We refer further to our announcement made via SGXNET on 14November 2006, announcing the delay in the completion of our new plant. With the new plantcoming online in 2H2007, the Group is confident that, barring any unforeseen circumstances,2H2007 will be able to achieve a year-on-year double digit growth.”
