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Results as expected by most of the market, so not much to read into with the results, they are performing well. Should build more confidence in the market that these guys are performing well especially since they are still quite new. With more results and consistency for the market this stock should see a strong re-rate sometime in the future. Hopefully don't have to wait too long, but important thing is the companies putting runs on the board and growing shareholder value, so its a good time to continue building a good position and enjoy the ride.
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Originally Posted by silverblizzard888
Results as expected by most of the market, so not much to read into with the results, they are performing well. Should build more confidence in the market that these guys are performing well especially since they are still quite new. With more results and consistency for the market this stock should see a strong re-rate sometime in the future. Hopefully don't have to wait too long, but important thing is the companies putting runs on the board and growing shareholder value, so its a good time to continue building a good position and enjoy the ride.
Agree completely, they seem to be trucking along quite nicely. No nasty surprises and very cautious with their outlook, always a good sign not try get too far ahead of themselves.
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Sitting on a PE of 31.8 (for basic EPS of 3.65c) may seem high but with revenue growing by 89% and NPAT by 61% it is worth it. Even with the lower gross margin of 12.6% resulting from milk powder sales QEX still comes out cheap compared to other high growth companies on the NZX. Still cashflow negative but debt level is low, as is cash and equivalents. There seems to be a high level of trade receivables at the balance date without any comment on this in the report.
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Anyone got any comment on why the share price has taken a massive dive after the annual result came out? I thought it was pretty good result too, but it's down nearly 15%? If it's worry regarding milk into China wouldn't A2M be effected more? Looking at the depth numbers it seems there is more to come also. Could this be someone on the inside bailing out?
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What is their MOAT?The majority of sales are in NZ
GP% actually went down,most increase in TO in low margin products,need more capital raise to support future growth?
What is their advantage?
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Member
They ship and distribute NZ products into China.
Someone else might be able to clarify the details, but I believe the NZ customers are websites and daigou (https://en.wikipedia.org/wiki/Daigou) who sell products to China - they pay QEX who then buys, packages, ships the product to China (clearing customs) and then distributes it from there. Predominantly infant formula and health suplements I assume/believe.
Their magic sauce is the ability to do all of those things, rather than being another Fedex or DHL, and a "knack" for getting through the customs process.
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Originally Posted by Aarrgghh
They ship and distribute NZ products into China.
Someone else might be able to clarify the details, but I believe the NZ customers are websites and daigou ( https://en.wikipedia.org/wiki/Daigou) who sell products to China - they pay QEX who then buys, packages, ships the product to China (clearing customs) and then distributes it from there. Predominantly infant formula and health suplements I assume/believe.
Their magic sauce is the ability to do all of those things, rather than being another Fedex or DHL, and a "knack" for getting through the customs process.
Pretty much it. Though I would add it is end-to-end service. So they can pick up product here in NZ (Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Queenstown), fly daily to China, process through what is thought to be the only Australasiian bonded warehouse in Shanghai and delivery to the end user in China.
Percent downturn in SP may be market reaction to Chinas recent announcement where they want to see more domestic IF produced, no doubt at the expense of foreign manufactures / distributors. Also a bit of nervousness around trade wars.
Their moat is their established footprint in china - its not an easy thing to set up end-to-end freight into China.
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Personally I don't see any issues with QEX, its a growing company below the radar to most investors, look where its come from at launch it was a .25 share issued at .40 now $1.00 on good results so far and good growth prospects .
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Originally Posted by Aarrgghh
Anyone got any comment on why the share price has taken a massive dive after the annual result came out? I thought it was pretty good result too, but it's down nearly 15%? If it's worry regarding milk into China wouldn't A2M be effected more? Looking at the depth numbers it seems there is more to come also. Could this be someone on the inside bailing out?
Minimoke above has given a really good summary so I won’t repeat that. With regard to the variation in price that’s what all shares do and particularly those that are high growth and thinly traded. If you invest in the sharemarket it just goes with the territory.
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Member
Originally Posted by minimoke
I apologise to holders. You can now expect a 10% drop in SP as I have today entered this register. Wanted to park my SML profits somewhere with high risk and potential high reward. I like QEX's story to date (still gives me exposure I want to China and agriculture) and they seem to be getting runs on the board. Inevitably when I buy a SP drops. Sorry.
Perhaps the above post 27/03/19 by Minimoke, may explain the recent drop in share price, having a little spend up.
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