Member Info for Proselenes

Interim results link here : http://www.hkexnews.hk/listedco/listconews/sehk/20090910/LTN20090910011.pdf A number of negatives in there that people can take if you want to look past the headlines, which likely explains the "mute" reaction to the release on the Hang Seng this morning (RCG presently positive just 1% and getting weaker as time goes by, might finish down if this continues.)

Nice indeed

Looks like profit taking and consolidation over, and off we go up again.

Strong start to the week, lets hope this can go though 400p or 450p in September, would be good have a good run and consolidate above 400p levels.

Good news and goes with many earlier comments that companies like WCC, who are building new plants that are much more enviromentally friendly will take up much of the business of smaller and older plants that are shut down due to being too pollutive. WCC has won a number of awards for the efforts in being enviromentally friendly. Although this story centres on Beijing it is a similar story across the country. http://www.cementchina.net/news/shownews.asp?id=6024 Beijing to kick out 13 cement producers http://www.cementchina.net [2009-8-21] Beijing is eliminating a number of small-scale cement companies that are marked by heavy-pollution, high-energy and high-water consumption. At the kickoff ceremony of "China Cement Industry Promotion Program" on August 16, Beijing Cement Industry Association Secretary Hu Zhongjia said Beijing will retain only about 10 large-scale cement plants by 2010. Beginning in Beijing on August 16, "China Cement Industry Promotion Program" will visit 22 cement plants in Beijing, Henan and Hubei over 34 days to demonstrate production techniques and exchange technological experience. In addition, experts will diagnose production problems and provide technical support on site. The cement industry is fundamental to the real estate construction material sector. Hu Zhongjia stated that the municipal government has formulated policies to ban the establishment of new cement enterprises and to reduce the...........

Decent end of the week. I would imagine this will have plenty of legs into results and the institutional/investor presentations after results.

Bit of media coverage following the results. http://www.smallcapnews.co.uk/article/Manufacturers_still_gripped_by_recession_but_positive_signs_are_emerging/8286.aspx .

Prices of cement in key WCC markets stable. (Broker estimates are based on 300RMB average selling price). http://www.cementchina.net/news/shownews.asp?id=6004 Shaanxi (main market) steady at 371 RMB Sichaun (minor market) steady at 418 RMB Gansu (minor market) steady at 450 RMB .

My position was built up from 100p to 160p and that is all still held and not planning to be sold. Quite simply there could be big swings ahead, up or down, but I am following a policy with this one of just waiting for end of the year 2011, which is just over 2 years away. I have added in the low 200's and mid 200's as well. I will review the position either when we hit 10 pounds or end 2011 as planned. At 10 pounds if its earlier than 2011 year end I may top slice some to take some profit. However, what you do is of course your choice and remember never be afraid to take profits, never be too greedy to take some off the table.

Anyone interested please note : WCC management are planning an institutional investor road show in September following the interim results announcement. As part of this road show, the company would like to invite retail investors to an investor presentation and Q&A session on Tuesday 8th September at The Caledonian Club, 9 Halkin Street, Belgravia, London SW1X 7DR. The meeting will be at 3:30pm (15:30). Ms Po Ling Low, WCC CFO and Mr Robbie Robertson, WCC Non Executive Chairman will be presenting at this meeting. Please email the corporate broker, Anthony Schindler ( anthony.schindler@evolutionchina.com ) to confirm your attendance at this meeting.

Should be the next leg up now as the short term money has left, onwards and upwards to interims and beyond.

The company is doing well and the outlook is good. The price is very low and so its simply a case of buy and hold and add. The short term price movements can be ignored, the market makers will spike the price to get some sells and then drop it down to get stop loss sells too. This is all part of making stock available for buyers. We need periods of consoldiation as it makes the overall price stronger. Patience is the key, I am holding to 2011 for this one.

EVO are forecasting 1.89m tonnes sold for half one of 2009 at a price of 300RMB average for the period. That is sales of 568m RMB with gross margin at around 40.8% giving a PBT of 195.4m and a net profit of say 181 million RMB. That should fall in with my desires of 25p earnings for the half year, or say 2.75 RMB of earnings. There is potential for a little upside if the average price is a little higher than 300RMB but given the close relationship between EVO and their client I would suggest their figures should be close. For those looking ahead WCC should be producing and selling 10m tonnes by end 2010 (this is the stated goal and also everything is in place). For for 2011 you would get 10m tonnes sold at say 400RMB average price (cement is on the up in Western China and over 400 already in some places) which would be sales of 4 billion RMB . So in a very simple illustration of taking 7 times (4 billion divided by the 1st half 568m) the forecast earnings for 1st half 09 at 568m sales you get 7 x 2.75rmb = 19.25 rmb or prospective £1.72 of EPS for full year 2011 results. Again the £1.72 of earnings is in the range I was talking about earlier for 2011 full year. Happily holding and adding and waiting patiently for 10m tonnes sold in 2011 with further plans announced by that stage and in process to increase capacity even more.

http://www.investegate.co.uk/Article.aspx?id=200908171159405497X Gledhill how at 29% holding......

http://business.scotsman.com/personal-finance/If-the-small-cap-fits.5556824.jp '.......Hargreave is partial to "quirky" companies, a good recent example being West China Cement, listed on the alternative investment market (AIM) but insulated from the UK economy. "Chinese companies quoted on AIM sell on amazingly low ratings even though they are growing," Hargreave noted. "If West China Cement gets listed in HK or even here there will be a dramatic rise in its share price........"'

Nice to see someone as prominent as Giles Hargreave saying he likes West China Cement and the price could double quite quickly. I am expecting it to triple in the mid term, but yes double short term. Interview from 14th August, comment on WCC about 1m 47s in. Enjoy. http://www.citywire.co.uk/adviser/-/video/week-in-investment/content.aspx?ID=353760 .

Will be nice to break the mid and then bid through 300p. Its getting there.

or retrofit kits for older model planes (and a short and simple summary of why carbon ceramics its due to large reductions in weight (and so fuel saving) as you do not need the brake heat sinks. An additonal benefit for planes is the very quick turnaround possible as you are not waiting for overheated standard brakes to cool back down). So SCE remains a high risk tech stock, one that hopefully is on the verge of finally (within 18 months) getting to break even or a small profit and with plenty of jam tomorrow blue sky potential should one of the big ones drop.

Got their placing done 12th August. http://www.investegate.co.uk/Article.aspx?id=200908121316493325X It now boils down to deliverance or not. Rocket systems should contribute H2 of this year and significantly in 2010. Car braking systems will obviously as we know be hit with the credit crisis and therefore reduction in the sales of high performance cars however SCE are pushing to become the best value by reducing costs, which should benefit when things turn around. According to the background of the placing ( http://www.investegate.co.uk/Article.aspx?id=200907200700129044V ) the money is to pursue a niche opportunity <i>"wishes to accelerate the adoption of the carbon ceramic brake technology in an active niche aircraft programme opportunity.",/i> One would and should expect this to be a short term fill in for the lack of car braking sales. My expectations prior credit crisis were along the lines of first profits in 2010 financial year, given the set back and if they can get a niche opportunity they may move back to being break even for 2010 (next financial year). Rocket systems is a bread and butter going forward as should have been car braking systems. The jam for tomorrow has always been mainstream application of their aircraft braking and that continues, so it will be interesting to see what this additional "niche" opportunity is. Those who like the dream would always wish for adoption of their systems on the 787 or A350 for

Why worry ? Yangxian is a brand new plant being built that is due to come on line in Q2 2010. They still think it will come on line on time. This new building makes no difference to their present production levels or plants. WCC are building 2 small 1m tonne plants ready for production in 2010 to further increase their output. The Angkang plant will be fully on line by Q4 2009 and this added to their existig production allows for 120p of earning sin 2010. Yangxian and the other plant are pure upside to that. Relax.