Mr. HAN Huan Guang
Hong Kong, Mar 13, 2009 AEST (ABN Newswire) - EcoGreen Fine Chemicals Group (HKG:2341) is a market leader in Fine Chemical R&D and manufacturer in China with an impressive financial portfolio. During the financial turmoil of 2008, the company reported its 1H results in last year, a 20% increase in turnover, a 17% increase in gross profit, a 30% increase in EPS on a YoY basis with a current ratio of just 2.5 times. At the time of writing this article the PE ratio stands at only 2.92, it is definitely a "Must Buy" for most savvy investors. It is expected that, the company will continue its growth trend for many years to come.
EcoGreen specialises in providing basic chemicals and natural extract compounds for the Personal Care industry, Food and Beverage Industry and also the pharmaceutical industry. EcoGreen has a balanced client base of over 160 clients across the globe, including top 5 global Flavor and Fragrance producers and household brand names such as IFF, Givaudan, Firmenich, Symrise, Nestle and P&G.
Since its IPO on the main board of Hong Kong Stock Exchange in early 2004, EcoGreen has delivered a solid growth of business at about 30% CAGR over 4 years. Particularly,
- In Year 2007, it had a RMB 612 mil Turnover and RMB 130 mil Net Profit, with Total Gross Margin at 34.2%, and a Net Cash of RMB 151 mil (Total Cash RMB 307 mil);
- In 1H 2008, it achieved RMB 346 mil Turnover and RMB 80 mil Net Profit, at 34% Total Gross Margin, with a Net Cash of RMB 96 mil (Total Cash RMB 464 mil).
Among the 3 major product categories in EcoGreen, Aroma Chemicals contributes over 60% to the Company's total revenue, while Natural Extracts and Intermediates are providing a big potential and a nice profitability. EcoGreen is in the world one of the top 3 producers of DHMOL (a key Aroma Chemical used in Fragrance industry), with a global market share of over 25% roughly. Apart from its strong botanic-originated Fragrance chemical production from HaiCang Plant, EcoGreen is also manufacturing some high-ended flavor chemicals and natural food additives recently on the extension of state-of-the-art facilities on both HaiCang and Xinling sites in Xiamen.
Given a low sensitivity of its business to the economic cycle, EcoGreen would cautiously position itself to take the best opportunity of growth, provided from its international peers' continuous consolidation of upstream production, in an economic downturn.
In general, to meet with the long term demand for its products from both domestic and international markets, EcoGreen is now working on a decisive development plan besides its capacity expansion scheme, in:
- Development and launch of new value-added products with a higher margin, to generate new profit and grow total market share;
- Improvement of efficiency through optimization of production process and technological innovation, to maintain an overall cost effectiveness;
- Consolidation of supply chain of basic aroma chemicals through a strategic resource management. In fact, a vertical integration to the upstream suppliers is recently given a priority, for a stable and cost-effective supply of strategic raw materials.
EcoGreen focuses on production quality, technological innovation and supply chain management. They have a Research and Development team consists of over 50 research professionals including PhDs degree holders and senior professors, among their 300 total staffs members.
In term of R&D for new products development, EcoGreen is planning to roll out 40 more new products in 2009 and 65 more new products in 2010.
Contact
INVESTOR RELATIONS CONTACT
David Han (Executive Director)
Tel: +852-2530-0609
Email: davidhan@ecogreen.com
Website: http://www.ecogreen.com
| ||
|
