Broke below support 0.80 after a long black (red) candlestick and the usual set of bearish indicators with the Double Sell signals (high lighted below). Judging from the strength and trend of the signals, there is still more downside to come, with support around 0.70. Click on chart for details:
By the way, Beauty China is currently the topmost bearish counter on the Top10 list, followed by Sinostar, DataCraft, China Oilfield, Lian Beng, China Sun, China XLX, China Sky, Ascott Residence and China Essence. Note that 7 of the 10 are S Shares:
News:
20080226: Beauty China - 4Q07 results lower than expectation due to higher distribution expenses and depreciation cost by Singapore Research Team
Beauty China released the 4Q07 results. Turnover increased 40.1% yoy to HK$211.3m, in line with our expectation. However, net profit just up 0.9% yoy to HK$39.6m. On the full year basis, net profit increased 20.1% yoy to HK$161.9m, 9% lower than our forecast and 5% below the market consensus.
The lower than expected net profit was mainly due to the high distribution cost and the other operating expenses. Distribution cost surged 54.9% yoy in 4Q07, mainly driven by increased A&P expenses and higher logistical cost. The depreciation of newly-acquired factory and the amortization of the land use rights lead the other operating expenses soared 131.6% yoy in 4Q07.
Beauty China released the 4Q07 results. Turnover increased 40.1% yoy to HK$211.3m, in line with our expectation. However, net profit just up 0.9% yoy to HK$39.6m. On the full year basis, net profit increased 20.1% yoy to HK$161.9m, 9% lower than our forecast and 5% below the market consensus.
The lower than expected net profit was mainly due to the high distribution cost and the other operating expenses. Distribution cost surged 54.9% yoy in 4Q07, mainly driven by increased A&P expenses and higher logistical cost. The depreciation of newly-acquired factory and the amortization of the land use rights lead the other operating expenses soared 131.6% yoy in 4Q07.
