Profit Margins27 Sep 2013 15:29
Hi everyone,
I'm new to this board, but have held on to my ACHL shares for quite some time (and wish I hadn't).
The results are slightly better than the profit alert, so there have been no big surprises. The reduction in production volume was well explained by the newly planted trees and the canker infection. However, both main activities (the orange production and the pineapple juice) have reported lower sales prices - of three percent for oranges and even 20% for the juice. If you relate this decrease to the rapid increase in wages and an inflation level of about 3%, it is difficult to see how the EBITDA should improve, even if the level of production rises again. Does anyone here have a reassuring answer to this problem?
Also, the dividend payment exceeds the EPS by 0,01 RMB, which I would also take to be sign for a company.
I look forward to your comments!