Here is one to put on radar:
Asia Fiber Holdings Ltd
AFBR (OTC-BB)
Asia Fiber Holdings Limited ("AFBR": OTCBB) a Delaware corporation, is the controlling shareholder of an operating company based in the Peoples Republic of China (PRC) which manufactures and distributes polyester fiber for use in the apparel and textile industries. Its applications include everything from socks, leisure-wear and lingerie to carpet pile, tire cord and seat belts.
Asia Fiber Holdings is not widely known. They have great fundamentals, yet trade at low valuations. They are growing and have acquisition plans, yet it's not factored into the price. Once AFBR starts making acquisitions, gets globally listed, and recognized by the investing community as one of the largest listed Chinese companies on the exchange, the price will reflect the fundamentals.
AFBR's operating company ranks among the 500 largest foreign-owned corporations in China, and together with its 30% shareholder, represents the second largest consortium in the chemical fiber industry in China. Hence, an investment in AFBR translates into an investment in a major player in an industrial space which is currently experiencing double digit growth and an first-rate alternative investment on the emerging global commercial landscape.
Share-Related Items:
Shares Outstanding: 24,881,319
Float: 2.50M
Transfer Agent: American Stock and Transfer, New York
Current price: $1.35
Short-term target: $2.25
Mid-term target: $4.50
AFBR FINANCIALS
(INDEPENDENT AUDITORS-- Ernst & Young):
SEC FILINGS: Asia Fiber Holdings
For the period ended December 31, 2000, AFBR generated sales in excess of US$65,000,000 Dollars and retained a net income of US$3,754,000 Dollars which translates into fifteen cents (US$0.15) earnings per share in 2000. These enviable operating fundamentals are further bolstered by AFBR's tangible book value of $1.21 US Dollars per share. Over the past three years, AFBR has generated real sales in excess of US$50,000,000 Dollars per year and retained net incomes in excess of US$3,700,000 per year.
In the current market conditions, stocks are driven by fundamentals, and AFBR is a value and growth play:
VALUE:
++Current Mkt cap is just $36M
++Sales over the past year are $36M-- a price to sales ratio of .57
++Book value of the company is $1.25-- a price to book ratio of 1
++Earnings of .13 over the past year-- a price to earnings ratio of 10
++The Company's total sales for the first quarter of 2001 was $10.7 Million, with earnings per share of .03, and a working capital surplus of approx. US$18.0 million as of March 31,2001.
GROWTH:
++GROWTH IN PRODUCTION--The global polyester industry has experienced significant growth over the last decade, primarily as a result of the substitution of polyester for other synthetic and natural materials, general economic growth (especially in certain parts of the developing world), technological advancements and new applications. World polyester production grew at an estimated compound annual rate of 11.4 % between 1993 and 1998.
++ASIAN MARKET GROWTH--In the six-year period between 1993 and 1998, respectively, most of the growth in world polyester fiber production has occurred in Asia (excluding Japan), where production has increased at an estimated compound annual growth rate of approximately 14.9%.
++CHINESE MARKET GROWTH--China had a 21.8% world market share of polyester fiber production in 1998. It is estimated that the PRC's production of polyester filament and polyester staple fiber will be increased at an average compound annual growth rate of approximately 4.3% and 5.0%, respectively, over the period 1998 to 2004.
OUTLOOK FOR ASIA FIBER HOLDING
AFBR, through its aggressive acquisition campaign and its well-calculated internal growth strategy is taking significant advantage of the extensive growth being experienced in the world polyester industry. AFBR's efforts in this area include: 1) the execution of a Letter of Intent by AFBR's operating company to acquire four additional multifunction polyester chip production lines which, once finalized, will have the benefits to assure its raw material supplies, develop new value-added products, expand its product specifications further, and provide a dramatic increase in profits; and 2) implementation of its internal growth strategy focusing on new product development and the widening of its sales network which is anticipated to realize up to US$12,000,000 Dollars of increased sales revenue (an increase of 18%) on a rolling twelve month basis. Finally, China's highly anticipated entry into the World Trade Organization will provide AFBR with enormous benefits by significantly widening the doors of trade and enabling AFBR to position itself at the head of the pack in the substantial new trade opportunities which would then be available in China.
It is expected that the polyester fiber sector will ultimately benefit from China's entry into the World Trade Organization, as duties will be considerably reduced from the current 17% rate. Together with the projected growth in population and the expected improvement in the living standards in the PRC, the demand for polyester fiber will certainly increase significantly.
CORPORATE PROFILE
Asia Fiber Holdings Limited(AFBR) acquired all of the capital stock of Far Beyond Investments Limited, a British Virgin Islands corporation ("Far Beyond") on January 24, 2000. Far Beyond was incorporated in the British Virgin Islands on March 21, 1995 and owns a 70% equity interest in Harbin Asibao Chemical Fiber Company Limited ("Asibao"), a Sino-foreign joint venture company that manufactures and sells polyester fiber products. Asibao employs approximately 1,100 employees. Asibao's products are primarily distributed throughout China to a diversified customer base. Currently, management of Asibao believes that demand in China for polyester filament and staple fiber exceeds the locally produced supply.
HONG KONG OFFICE:
Room 2105, 21/F , West Tower
Shun Tak Centre
200 Connaughy Road C.
Sheung Wan, Hong Kong
(852) 2810-6226
E-Mail: ASIAFIBER@iconcept.net
UNITED STATES OFFICE
1788 Clear Lake Ave.
Milpitas, CA 95035
Tel: (408)935-8321
Fax: (408)935-8326
CHINA OFFICE
Long Di Centre, Heping St.
Acheng, Heilongjiang, China
Tel: (451)371-5335 Fax: (451)371-4161
RECENT PRESS:
Industrial Fabrics Association International
04/11/01
Asia Fiber Holdings Signs Letter Of Intent For Acquisition
06/08/01
Asia Fiber Holdings Ltd. Anticipates Sales Revenue Increases of 10 Percent in 2001 and 18 Percent in 2002 Through Internal Growth and through acquisitions of other production plants and increase its profits by an additional 40 percent |
