Most of the indicators are not yet available as it was just IPOed recently. However, a bearish signal was issued around Mid Oct (Chart 3) and subsequently it gapped down twice and a Doji star appeared on last closing. Likely to stay below the lower price band for the near term.
Its third-quarter net profit dropped by 40% to to RMB15.2m (S$2.9m), dragged down by lower profit margin and higher expenses.
News:Sinostar Pec Holdings – Posted a 40.2% drop in third-quarter net profit to RMB15.2m (S$2.9m), dragged down by lower profit margin and higher expenses. The profit drop came despite a 30.6% jump in revenue to RMB327.4m. The bulk of the revenue came from LPG sales, which rose 31.7% to RMB184.6m. This was possible due to higher capacity, brought about by the acquisition of an additional 250,000 ton gas fractionation facility last year. Sinostar's LPG products also saw higher average selling price and sales volume during the three months ended Sept 30. The group's propylene products, however, suffered a drop in average selling price. Basic 3Q07 EPS came to 2.36 fen, from 5.20 fen in Q3 last year. Net asset value stood at 70.7 fen per share as of Sept 30, from 13.6 fen as of end of last year. Notwithstanding the lower 3Q profit, Sinostar's 9M07 net profit came to RMB70.1m, a 46.3% gain from the previous year. Revenue for three quarters to date went up 42.3% to RMB848.2m
