Fuwei Films (FFHL) AT 11.08
Fundamental: 8
Chart: N/A
Dec 19, 2006
Fuwei develops, manufactures and distributes high quality plastic film using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco and alcohol, as well as in the imaging, electronics, and magnetic products industries.
FFHL just went IPO today and sold 3,750,000 ordinary shares in the offering at a price of $8.28 per share. There will be only 3.75 million in the float for the new hot China IPO stock. FFHL is the most talk about stock for today as traders compare it as the next EFUT due to low float, profitable and China IPO.
Very little information is available on the web, but the SEC filing has all the financial information on FFHL. Here is the SEC FILING.
- Revenues have increased going from approximately RMB 95.1 million in 2003 to RMB 346.2 million (US$43.3 million) in 2005 and RMB 159.8 million in the first half of 2005 to RMB 219.9 million (US$27.5 million) in the first half of 2006. The revenue has grown 250% from 2003 to 2005, and 37% in first half of 2005 to 2006. The 2006 revenue project is at least $55 million without any further growth.
- Net income in 2003 and 2005 was approximately RMB 23.0 million and RMB 57.1 million (US$7.1 million), respectively, and was approximately RMB 30.9 million and RMB 32.3 million (US$4.0 million) in the first half of 2005 and 2006, respectively.
- Total outstanding shares are 12.5 million, so putting the market cap as of $138 million. The current 2006 projected net income will be about $8.0 million without growth in second half 2006, and EPS is $0.64.
- The public offering will generate about $31 million cash for FFHL for growth purpose.
Based on the financial revenue and net income, it's very similar to EFUT. The shares in the float is larger than EFUT, but still small in size. The whole float had been traded on the first IPO day as traders just begin to know FFHL. The words are already spreading on FFHL as the next potential EFUT. iTradestation had sent out an alert to the forum subscriber when it was trading at high 9s area.
Based on the growth and momentum, I expect FFHL to trade to $20 within 2 weeks per EFUT's trading pattern.