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هذي هي توصية موقع pennystockinsider.com على سهم NWD
Buy Opinion: 0.75 - 1.00
Short-term Sell: 1.40 - 1.65
Long-term Sell: 4.00 - 4.80
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بالتوفيق للجميع
NWD AMEX New Dragon Asia Corp.
852.2815.9892 Newdragonasia.com Shares Outstanding: 40,910,000
The following report and company descriptions are presented on this page as originally published and will not be updated. Therefore some time-sensitive data may no longer be accurate. Be sure to consult our Hot List to get our original opinions on buy and sell price ranges.
October 2, 2003.
Highlights
NWD is one of the top flour and instant noodle manufacturers in China
The instant noodle market in China is estimated at $2 billion per year
NWD’s “Long Fengi” is one of the most recognizable brands in China
Korea, the world’s largest consumer of instant noodles, recently began importing NWD's products
The recent cessation of SARS could put NWD back on-top
Outlook- New Dragon Asia Corp. (NWD) is an industry juggernaut whose financial outlook was put on hold during the SARS outbreak. They are a financially solid company with a well-established network of distributors and regional offices that back some of the most recognizable brands in China.
They have recently signed new distribution agreements and raised $1.7 million to help with current acquisitions. As for future growth, NWD has a targeted strategy to acquire additional plants and expand their customer sales base and product lines.
Over the last three months NWD has regrouped and refocused itself, and is well-positioned to capitalize on the rapidly growing market of instant noodles; a staple “fast food” in Asia.
Business Profile - Headquartered in Hong Kong, NWD is one of the top flour manufacturers and instant noodle producers in Mainland China. The world’s most populous nation with over 1.2 billion people, it is estimated that the instant noodle market in China alone is worth an estimated $2 billion; with an annual growth rate of 20%.
The company’s “Flour” segment is engaged in the milling, sale and distribution of flour and related products for use in bread, dumplings, noodles and confectionery. The “Noodles” segment is engaged in the production of instant noodles, which are marketed under regional brands through supermarkets and food stores.
NWD currently sells over 30 flour and instant noodle products, including “Long Fengi”; one of the most recognizable products in China. Additionally, NWD has a well-established network of 200 distributors and 20 regional offices in over 27 Chinese provinces.
In 2001 NWD began to export their products into the U.S. With a U.S. Chinese population of 12 million, NWD believes there is a significant market for increased sales and broader awareness among the general population.
Fundamental Analysis - On August 19 NWD announced their financial results for the second quarter ended June 30, 2003.
The company posted second quarter revenue of $5.5 million, a decrease of 27% from the prior year period. NWD also disclosed an after tax loss of $589,000 for the quarter ended June 30, 2003, compared with a profit of $774,000 for the comparable period in 2002. Total revenue for the six months ended June 30, 2003 was $12,025,661 as compared to $14,391,032, a decrease of 16%.
NWD’s management believes that the SARS outbreak had a negative impact on their business; however, as the epidemic has been contained, management believes that their business will return to at least the pre-SARS levels.
In announcing this result, Mr. Song Xue Jun, Chairman and CEO of NWD noted, "The impact of the SARS crisis in China was exceptionally severe in the second quarter following an already depressed performance in the first three months of the year."
"The impact of the crisis affected us in a number of ways, including significant impairment of our product distribution, as regional areas of China were effectively quarantined by local authorities to prevent the spread of the virus. During this period, a large percentage of our traditional customer base did not travel or work, thus ensuring sharply lower demand for our fast food products…"
He concluded, "I am very pleased to add that, with the passing of the SARS crisis, our business is very much back to normal and we anticipate strong performances for the remaining quarters of the year."
For the nine months prior to the onset of SARS, NWD announced strong fiscal results. Total revenue for the nine months rose 9% to $22.8 million while the company's net income increased 7% to $2.1 million.
Recent News - On September 10 NWD announced that it has closed on a private placement with a group of institutional investors with gross proceeds of approximately $1.7 million. The proceeds from this offering will be used primarily for the purpose of ongoing acquisitions.
On August 5 NWD announced that it has received its first order for instant noodles from a Korean company; NWD estimates it will ship over 80,000,000 packets of noodles by the end of the year.
At a rate of 78 packets of consumption per capita, Korea is the largest consumer of instant noodles per capita in the world.
NWD is the only Chinese company whose noodles
are considered to be widely acceptable outside of China.
And while it is not uncommon for companies to write-off poor economic results on subjective, external sources, it is quite another matter to have quantifiable proof. On Saturday July 5, 2003 the World Health Organization declared that the SARS virus outbreak had been contained and was effectively over.
The day before the announcement NWD closed at 52 cents; on the following Monday they rose to 62 cents and within a week had soared 177% to $1.44.
Conclusion - NWD is an industry juggernaut in a country that spends $2 billion a year on instant noodles. The company’s well-established network of 200 distributors and 20 regional offices, coupled with their easily identifiable brands gives NWD a strong position in a rapidly growing, competitive market.
Over the last few quarters NWD has posted poor economic earnings; due almost exclusively to the onset of SARS back in November 2002. Since the end of the epidemic was announced in July, NWD has begun to regain their position as an industry leader, and build upon past accomplishments and future successes.
As for future growth, NWD has a targeted strategy to acquire additional plants and expand their customer sales base and product lines. In light of the SARS outbreak and in an effort to prevent any additional work flow stoppages NWD will also be implementing stricter health and safety guidelines.
While NWD is currently trading for 82 cents, one strong quarter could see them attain or surpass their pre-SARS levels. And if the past is any indication of this company’s long-term growth potential, subscribers of PeterLeeds.com could be in for a great ride.
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هذي هي توصية موقع pennystockinsider.com على سهم NWD
Buy Opinion: 0.75 - 1.00
Short-term Sell: 1.40 - 1.65
Long-term Sell: 4.00 - 4.80
وهو شرعي بفلتر الأخ أبو هاني
بالتوفيق للجميع
NWD AMEX New Dragon Asia Corp.
852.2815.9892 Newdragonasia.com Shares Outstanding: 40,910,000
The following report and company descriptions are presented on this page as originally published and will not be updated. Therefore some time-sensitive data may no longer be accurate. Be sure to consult our Hot List to get our original opinions on buy and sell price ranges.
October 2, 2003.
Highlights
NWD is one of the top flour and instant noodle manufacturers in China
The instant noodle market in China is estimated at $2 billion per year
NWD’s “Long Fengi” is one of the most recognizable brands in China
Korea, the world’s largest consumer of instant noodles, recently began importing NWD's products
The recent cessation of SARS could put NWD back on-top
Outlook- New Dragon Asia Corp. (NWD) is an industry juggernaut whose financial outlook was put on hold during the SARS outbreak. They are a financially solid company with a well-established network of distributors and regional offices that back some of the most recognizable brands in China.
They have recently signed new distribution agreements and raised $1.7 million to help with current acquisitions. As for future growth, NWD has a targeted strategy to acquire additional plants and expand their customer sales base and product lines.
Over the last three months NWD has regrouped and refocused itself, and is well-positioned to capitalize on the rapidly growing market of instant noodles; a staple “fast food” in Asia.
Business Profile - Headquartered in Hong Kong, NWD is one of the top flour manufacturers and instant noodle producers in Mainland China. The world’s most populous nation with over 1.2 billion people, it is estimated that the instant noodle market in China alone is worth an estimated $2 billion; with an annual growth rate of 20%.
The company’s “Flour” segment is engaged in the milling, sale and distribution of flour and related products for use in bread, dumplings, noodles and confectionery. The “Noodles” segment is engaged in the production of instant noodles, which are marketed under regional brands through supermarkets and food stores.
NWD currently sells over 30 flour and instant noodle products, including “Long Fengi”; one of the most recognizable products in China. Additionally, NWD has a well-established network of 200 distributors and 20 regional offices in over 27 Chinese provinces.
In 2001 NWD began to export their products into the U.S. With a U.S. Chinese population of 12 million, NWD believes there is a significant market for increased sales and broader awareness among the general population.
Fundamental Analysis - On August 19 NWD announced their financial results for the second quarter ended June 30, 2003.
The company posted second quarter revenue of $5.5 million, a decrease of 27% from the prior year period. NWD also disclosed an after tax loss of $589,000 for the quarter ended June 30, 2003, compared with a profit of $774,000 for the comparable period in 2002. Total revenue for the six months ended June 30, 2003 was $12,025,661 as compared to $14,391,032, a decrease of 16%.
NWD’s management believes that the SARS outbreak had a negative impact on their business; however, as the epidemic has been contained, management believes that their business will return to at least the pre-SARS levels.
In announcing this result, Mr. Song Xue Jun, Chairman and CEO of NWD noted, "The impact of the SARS crisis in China was exceptionally severe in the second quarter following an already depressed performance in the first three months of the year."
"The impact of the crisis affected us in a number of ways, including significant impairment of our product distribution, as regional areas of China were effectively quarantined by local authorities to prevent the spread of the virus. During this period, a large percentage of our traditional customer base did not travel or work, thus ensuring sharply lower demand for our fast food products…"
He concluded, "I am very pleased to add that, with the passing of the SARS crisis, our business is very much back to normal and we anticipate strong performances for the remaining quarters of the year."
For the nine months prior to the onset of SARS, NWD announced strong fiscal results. Total revenue for the nine months rose 9% to $22.8 million while the company's net income increased 7% to $2.1 million.
Recent News - On September 10 NWD announced that it has closed on a private placement with a group of institutional investors with gross proceeds of approximately $1.7 million. The proceeds from this offering will be used primarily for the purpose of ongoing acquisitions.
On August 5 NWD announced that it has received its first order for instant noodles from a Korean company; NWD estimates it will ship over 80,000,000 packets of noodles by the end of the year.
At a rate of 78 packets of consumption per capita, Korea is the largest consumer of instant noodles per capita in the world.
NWD is the only Chinese company whose noodles
are considered to be widely acceptable outside of China.
And while it is not uncommon for companies to write-off poor economic results on subjective, external sources, it is quite another matter to have quantifiable proof. On Saturday July 5, 2003 the World Health Organization declared that the SARS virus outbreak had been contained and was effectively over.
The day before the announcement NWD closed at 52 cents; on the following Monday they rose to 62 cents and within a week had soared 177% to $1.44.
Conclusion - NWD is an industry juggernaut in a country that spends $2 billion a year on instant noodles. The company’s well-established network of 200 distributors and 20 regional offices, coupled with their easily identifiable brands gives NWD a strong position in a rapidly growing, competitive market.
Over the last few quarters NWD has posted poor economic earnings; due almost exclusively to the onset of SARS back in November 2002. Since the end of the epidemic was announced in July, NWD has begun to regain their position as an industry leader, and build upon past accomplishments and future successes.
As for future growth, NWD has a targeted strategy to acquire additional plants and expand their customer sales base and product lines. In light of the SARS outbreak and in an effort to prevent any additional work flow stoppages NWD will also be implementing stricter health and safety guidelines.
While NWD is currently trading for 82 cents, one strong quarter could see them attain or surpass their pre-SARS levels. And if the past is any indication of this company’s long-term growth potential, subscribers of PeterLeeds.com could be in for a great ride.
--------------------------------------------------------------------------------
