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Buy rating by BofA, Merril
Asian Bamboo AG climbed 2.9 percent to 39.45 euros as the Chinese bamboo plantation operator was rated “buy” in new coverage at BofA Merrill Lynch Global Research. The company “trades at a significant discount to its local Chinese peers and to German agricultural companies, which we do not think is justified,” London-based analysts Claus Roller and Gerhard Orgonas wrote in a report today.
http://www.bloomberg.com/news/2011-01-19/deutsche-lufthansa-kloeckner-rwe-vw-german-equity-preview.html
I just bought a bunch of the ADR. Really exciting. Organic, sustainable, profitable.
Hey guys, anyone following ?? Very, very good company for sure !!!
Asian Bamboo signs framework agreement for the lease of 10,000 ha
Hamburg, 15 March 2010 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”, ADR ticker symbol: “ASIBF”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that its wholly-owned subsidiary, Fujian Xinrixian Group Co., Ltd. (“Xinrixian”), has entered into an Investment Co-operation Framework Agreement (“the Agreement”) with Longyan Municipal Government (“the Government”).
As part of the Agreement, the Government will assist Xinrixian to lease more than 10,000 hectares (ha) of additional Moso bamboo plantations in Longyan City. Furthermore, the Government will provide favourable policies and business conditions for Xinrixian to invest in processing factories both for bamboo trees and bamboo shoots.
Longyan City, which is in southwestern Fujian Province, is strategically well located as it borders the provinces of Jiangxi and Guangdong. Longyan City has the highest forest cover ratio in Fujian Province (78%) and its Moso bamboo forests cover an area of approximately 170,000 ha, of which Asian Bamboo currently leases 5,000 ha.
Mr. Lin Zuojun, founder and CEO of Asian Bamboo, commented: "We see tremendous potential to develop our business in the Longyan area and this agreement is an important step towards achieving our longer term goal of increasing our total plantation size to at least 70,000 ha.”
Asian Bamboo wins “Hi-tech Enterprise” status
Asian Bamboo is pleased to announce that Xinrixian has been awarded "Hi-tech Enterprise" status by the Science and Technology Bureau of the Fujian Provincial People's Government in recognition of the Group’s research capabilities in the Moso bamboo industry.
Asian Bamboo’s preliminary FY 2009 results beat guidance
http://www.asian-bamboo.com/Article/ShowInfo.asp?ID=5980&PID_=546
I see big volumes last days. Good sign.
AB leases 5,000 ha of bamboo plantations
Hamburg, 1 February, 2010 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that it has signed lease agreements for two bamboo plantations with a total size of approximately 5,000 hectares (ha).
The plantations, located in Longyan in Fujian Province, are being leased for 20 years and Asian Bamboo will pay a total fee of around EUR 27.9 million (RMB=270 million), translating into a leasing fee per hectare of EUR 5,585 (RMB=54,000). The terms of the lease are similar to those of previous leases. Around 30% of the lease fee will be paid in Q1 2010 and the balance when the harvesting rights are transferred later in the year. The plantations are expected to start generating output in Q4 2010.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: “Securing new plantation leases is the foundation of our business model. Including these plantation leases, we now have a total plantation size of 36,729 ha, of which 27,943 ha are mature plantations.”
Asian Bamboo sponsors Fuzhou Giant Panda Research Center
Asian Bamboo is pleased to announce that it has agreed to become a sponsor of Fuzhou Giant Panda Research Center, the second largest centre for panda protection and research on panda reproduction in China.
Asian Bamboo will provide financial support and supply fresh bamboo shoots for a period of at least two years. The pandas’ diet consists mainly of bamboo and they can eat up to 30 kg of food in one day.
For enquiries, please contact:
Asian Bamboo AG:
Peter Sjovall +852-9385 3868
Chief Financial Officer
Anja Holst +49-(0)40 37644 798
Investor Relations Manager
About Asian Bamboo AG:
Asian Bamboo is a world-leading producer of Moso bamboo trees and organic bamboo shoots. Bamboo trees are used for scaffolding or as input material for processed products including flooring, plywood, panels, veneer, pulp and paper, furniture and textiles. Organic bamboo shoots are sold fresh in domestic agriculture markets, processed for export to the Japanese market or distributed domestically to industrial buyers or supermarkets. The Company currently owns long-term leasing rights for 29 bamboo plantations with a total size of 36,729 hectares, with the aim of reaching a total plantation size of at least 40,000 ha by the end of 2010. In the longer term, the Company is aiming for a total plantation size of at least 70,000 ha.
As a National Key Flagship Enterprise, the company is at the forefront of developing the agriculture industry in China, which helps to raise farmers’ incomes and increase output. Asian Bamboo has obtained organic food accreditations in China, Japan, Europe and the United States in addition to its HACCP and ISO9001 certifications. The company was recently ranked the 17th fastest growing company in China by Forbes China Magazine.
Asian Bamboo Group's registered office is located in Hamburg, Germany and the Company is listed on the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol “5AB”.
For more information about Asian Bamboo, please visit our website at
www.asian-bamboo.com or www.asian-bamboo.de
5AB launches ADR trading program ;
Hamburg, 21 January, 2010 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that it has appointed Deutsche Bank as the depositary bank for its American Depositary Receipt (“ADR”) trading programme. The details of the ADR programme are:
Type of ADR: Level I ADR
CUSIP: 04520U106
ISIN: US04520U1060
Exchange: OTC
Ratio: 1 ordinary share equals 2 ADRs
First trading day: 20 January 2010
An ADR is a receipt that is issued by a depositary bank representing ownership of a company's underlying ordinary shares. Trading in ADRs, as opposed to ordinary shares, permits investors to trade in US dollars in the US securities markets with US securities dealers. Dividends are also paid in US dollars.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: “We have noticed a growing interest in our Company among US-based institutions and we believe that the launch of an ADR trading scheme will further enhance liquidity in our stock.”
They work their business to a vertically integrated company. Today they take a 40% stake in a leading bamboo plywood manufacturer. Brilliant deal, investing € 3 million in the first year profits take out direcht 680.000 € (40% of 1.7 mill €)
20% of AB 's Bamboo trees this year will be decreased by plywood manufacturer. What?!
Was last time I noticed that they really look after their releases, they just cram everything together. Are economical with their money.
But what is there?
Asian Bamboo 's 17th fastest growing company in China of the 8000 screened. Hello?! And it comes from Forbes!
Weather boost in size.
Forbes ranks Asian Bamboo as the 17th fastest growing company in China
Asian Bamboo AG is also pleased to announce that it was ranked as the 17th fastest growing company in Forbes China Magazine's ("Forbes") sixth annual list of small and medium sized companies in China.
The rankings, published on 5 January 2010, assessed the performance of more than 8,000 listed and unlisted companies with a turnover of between 5 million and 1 billion RMB, based on three-year growth rates in revenue, net profit and return on assets.
Mr. Lin Zuojun commented: "We are proud to be ranked as one of the fastest growing companies in China, particularly as our revenue growth is combined with high profitability."
Asian Bamboo acquires a 40% stake in Xinlifeng
Hamburg, 11 January, 2010 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that Hong Kong XRX Bamboo Investment Co., Ltd. (“Hong Kong XRX”), a wholly owned subsidiary, has acquired a 40% stake in Fujian Xin Li Feng Bamboo Group Co., Ltd. (“Xinlifeng”), a leading producer of bamboo plywood, for approximately EUR 3 million.
Xinlifeng was created by transferring assets from San Feng Group, which has an established market position in the bamboo plywood industry. Xinlifeng’s bamboo plywood products are mainly used in the construction industry as building templates and have certain advantages over building templates made of other types of wood. The cash contribution from Hong Kong XRX will be used to increase Xinlifeng’s production capacity in order to meet increasing demand. The registered capital of Xinlifeng is EUR 7.5 million and the company is debt free.
The Management Board of Asian Bamboo believes that Xinlifeng will buy around 20% of the Company’s total output of bamboo trees in 2010. In addition, it expects that Xinlifeng will achieve a turnover and net profit of at least EUR 13 million and EUR 1.7 million, respectively. Benefitting from the strong demand in the construction industry in China, in combination with the comparative benefits of using bamboo for building template production, the Management Board of Asian Bamboo believes that the outlook for Xinlifeng is very promising.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: “Our investment in Xinlifeng creates a new major distribution channel for our bamboo trees which will increase total demand, in line with our plans for future plantation size expansion.”
New website available !!! Happy New Year to all.
http://www.asian-bamboo.com/index.asp
Asian Bamboo AG and Mr. Lin Zuojun win awards
Asian Bamboo AG is also delighted to announce that Fujian Xinrixian Group, its wholly owned subsidiary, has been selected by the Provincial People’s Government to receive the “Best Agriculture Enterprise Brand in Fujian Province” award, including a cash prize of around EUR 100,000. The award recognises the Group’s contribution to agricultural industrialisation, brand building and corporate and social responsibilities.
In addition, Mr. Lin Zuojun, Asian Bamboo’s founder and CEO, has been selected as one of the “Outstanding Young Entrepreneurs in Fujian Province” by a panel of ten provincial government authorities, including the Communist Youth League Committee of Fujian Province, the Provincial Rural Affairs Office and the Provincial Economic and Trade Commission.
Mr. Lin commented: “We are delighted to receive these awards which show that we are striking the right balance between achieving financial returns for our shareholders, contributing to the development of the Chinese agriculture sector and supporting the areas where we operate.”
Asian Bamboo AG secures another plantation lease agreement
Hamburg, 14 December, 2009 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that it has signed a lease agreement for a bamboo plantation with a total size of approximately 2,100 hectares (ha).
The plantation is located in Guilin Town in Shaowu City, Fujian Province, close to some of the Company’s other plantations. Asian Bamboo will pay a total fee of around EUR 11 million for a 20 year lease, translating into EUR 5,370 per ha. The company will utilise the funds borrowed from DEG to finance the lease. Around 30% of the total lease fee will be paid before the end of the year and the balance when the harvesting rights are transferred. The plantation is expected to start generating output in Q3 2010.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: “Securing new plantation leases is the foundation of our business model. Including this plantation lease, we now have a total plantation size of 31,629 ha, of which 27,943 ha are mature plantations.”
no specific reason for the decline. Any thoughts ?
Asian Bamboo reports strong interim results and confirms guidance
Q1-Q3 2009 results highlights (all numbers compared to Q1-Q3 2008):
• Revenue up 29% to EUR 40.7 million
• Adjusted net profit up 34% to EUR 19.4 million, equivalent to EUR 1.53 per share
• Adjusted net profit margin up 2 percentage points to 48%
• Excluding unrealised costs for stock options, the adjusted net profit was EUR 20.9 million and the adjusted net profit margin was 51%
• The Management Board and the Supervisory Board will propose a dividend of EUR 30 cents per share for 2009, up 50% year-on-year, to be paid in 2010
Hamburg, 6 November, 2009 – Asian Bamboo AG (“Asian Bamboo”, ISIN: DE000A0M6M79, ticker symbol: “5AB”, “the Company”), a world-leading producer of bamboo trees and organic bamboo shoots, increased its revenue for the first three quarters of the year by EUR 9.2 million (29%) to EUR 40.7 million (2008 = EUR 31.5 million). The adjusted net profit rose by EUR 4.9 million (34%) to EUR 19.4 million (2008 = EUR 14.5 million), which is equivalent to EUR 1.53 per share (2008=EUR 1.14). The sharp increase in the adjusted net profit was primarily a result of an increase in the total size of mature plantations by 3,872 ha (21%) to 22,229 ha, stronger than expected sales, economies of scale and a change in the product mix towards higher margin products. The Company confirms its guidance of revenue of more than EUR 55 million and an adjusted net profit margin of at least 45%.
Mr. Lin Zuojun, CEO and founder of Asian Bamboo, commented: “The revenue and adjusted net profit in the first three quarters of the year are further evidence that we are on track for another record year. Following our loan agreement with DEG and our capital increase, we are adequately capitalised for a new growth phase with the aim of reaching a total mature plantation size of 40,629 ha by the end of 2010, up by 83% compared to the current level of 22,229 ha.”
The Q1-Q3 2009 Interim Report, both in English and German, can be accessed at:
English: http://www.asian-bamboo.de/en/investor_relations/publikationen.html
German: http://www.asian-bamboo.de/de/investor_relations/publikationen.html
For enquiries, please contact:
Asian Bamboo AG:
Peter Sjovall +852-9385 3868 (Hong Kong) or +86-136 9688 1212 (China)-
Chief Financial Officer
Anja Holst +49-(0)40 37644 798
Investor Relations Manager
About Asian Bamboo AG:
Asian Bamboo is a world-leading producer of Moso bamboo trees and organic bamboo shoots. Bamboo trees are used for scaffolding or as input material for processed products including flooring, plywood, panels, veneer, pulp and paper, furniture and textiles. Organic bamboo shoots are sold fresh in domestic agriculture markets, processed for export to the Japanese market or distributed domestically to industrial buyers or supermarkets. The Company currently owns long-term leasing rights for 26 bamboo plantations with a total size of 29,629 hectares with the aim of reaching a total plantation size of 40,629 ha by the end of 2010. In the longer term, the Company is aiming for a total plantation size of 70,000 ha.
Asian Bamboo Group's registered office is located in Hamburg, Germany and the Company is listed on the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol “5AB”.
For more information about Asian Bamboo, please visit our website at
www.asian-bamboo.com or www.asian-bamboo.de
Asian Bamboo AG announces the completion of a € 25.5 million capital increase as well as the greenshoe and placement of together an additional 500,000 shares by Green Resources
Release of an Ad hoc announcement according to Sec. 15 German Securities Trading Act (WpHG) / Capital Increase
Hamburg, 22 October 2009. With reference to the Company's announcement of 21 October, Asian Bamboo AG (ISIN: DE000A0M6M79; ticker symbol 5AB“, "the Company") is pleased to announce that it has successfully placed 1,275,000 new shares in a private placement at an issue price of EUR 20 per share to institutional investors by way of an accelerated bookbuilding process on 22 October managed by Sal. Oppenheim as Sole Bookrunner and M.M. Warburg as Joint Lead Manager. Due to strong and high quality investor demand substantially exceeding the offered shares, an over-allotment of 191,250 shares (“the greenshoe”) and an additional 308,750 shares (“the placement”) were placed by Green Resource Enterprise Holding Ltd ("Green Resources"), a company wholly owned by Mr. Lin Zuojun - the founder and CEO of Asian Bamboo. Following this increase in capital without subscription rights, the Company has a total of 14,025,000 shares outstanding.
As a result of the placement, Green Resources' shareholding in Asian Bamboo has decreased by 308.750 shares to 6,951,950 shares, which is equivalent to 49.6% of the total number of outstanding shares following the increase in capital and the placement. Following the exercise of the greenshoe, Green Resources’ shareholding will amount to 6,760,700 shares, which is equivalent to 48.2% of the Company. The Company and Green Resources have agreed not to sell any additional shares without the prior consent of Sal. Oppenheim, the Sole Bookrunner, for a period of six months from the closing of this transaction (the soft lock-up period).
As a result of the capital increase, the Company will receive gross proceeds of EUR 25.5 million, which will be used to finance future plantation leases.
Asian Bamboo AG
The Management Board
Asian Bamboo AG resolves to increase its share capital by up to 10%, terminates share buy-back programme and announces preliminary Q1-Q3 results
Release of an Ad hoc announcement according to Sec. 15 German Securities Trading Act (WpHG) / Capital Increase.
Hamburg, 21 October 2009, the Management Board of Asian Bamboo AG (ISIN: DE000A0M6M79; ticker symbol “5AB“, “the Company”) resolved with the consent of the Supervisory Board, and within the Company’s authorised capital, to increase the share capital of the company by up to EUR 1,275,000 by issuing up to 1,275,000 new, no par value, ordinary bearer shares (“new shares”).
In addition, Green Resources Enterprises Holdings Limited (“Green Resources”), the major shareholder of Asian Bamboo AG and a company wholly owned by Asian Bamboo’s founder and CEO – Mr. Lin Zuojun, will offer a green shoe option of 191,250 shares. The shares will be offered to institutional investors through a private placement and the size and issue price of the capital increase will be determined on the basis of an accelerated book building process. Sal. Oppenheim is acting as the global co-ordinator and sole book runner for the offering and M. M. Warburg as joint lead manager.
The pre-emption rights of the shareholders are excluded and no prospectus will be issued. The new shares shall be admitted to trading on the Prime Standard of the Frankfurt Stock Exchange. The new shares carry full dividend rights from the beginning of the 2009 financial year. Until the admission of the new shares, Green Resources will provide shares in the Company to be allocated to investors by means of a short-term securities lending arrangement.
The net proceeds of the capital increase will be used by the Company to lease around 4,000 hectares (“ha”) of new mature bamboo plantations (“new plantations”). Hence the Company intends to lease a total of 11,000 ha of additional mature plantations in 2010 (7,000 ha in the first half of 2010, as announced on 12 October, and 4,000 ha in the second half). The Company will release more details about the new plantations, including the exact size and location, as soon as possible after the transaction is completed. The Management Board expects that the Company will have a total plantation size of around 40,000 ha by the end of 2010, which is around 11,000 ha (37%) more than the current level of around 29,000 ha.
As a consequence of the share placement, the Management Board has decided to terminate the current share buy-back programme. In addition, the Management Board announces preliminary Q1-Q3 2009 results as follows:
• Revenue of EUR 40.7 million, up 29% year-on-year
• Adjusted net profit of EUR 19.4 million, up 34% year-on-year
• An adjusted net profit margin of 47.7% (2008 = 46.1%)
Due to the increase in the value of the Company's shares in Q3, we have booked an unrealised cost for Share Appreciation Rights ("SARs", "options"), issued to certain key employees, of EUR 1.5 million in the Q1-Q3 results. Excluding this non-cash item, the adjusted net profit for the period is up 44% year-on-year at EUR 20.9 million and the adjusted net profit margin is 51.4%.
Furthermore, the Management Board confirms its 2009 guidance of revenues of more than EUR 55 million and an adjusted net profit margin of at least 45%. The Management Board and the Supervisory Board will propose a dividend of EUR 30 cents for 2009, up 50% year-on-year, to be distributed in 2010.
Asian Bamboo AG
The Management Board
Asian Bamboo AG announces exercise in full of greenshoe option
Hamburg, 23 October 2009. With reference to the announcement of 22 October, Asian Bamboo AG (ISIN DE000A0M6M79, Ticker Symbol “5AB”, “the Company”) announces that Sal. Oppenheim, on behalf of the underwriters, has exercised in full the greenshoe option ("the greenshoe") of purchasing 191,250 shares from Green Resources Enterprise Holding Ltd. ("Green Resources"), a company wholly owned by Mr. Lin Zuojun, the founder and CEO of Asian Bamboo.
These shares have already been placed with institutional investors at € 20.00 per share. Following the exercise of the greenshoe, Green Resources owns 6,760,700 shares which is equivalent to 48,2% of the total number of shares. The Company and Green Resources have agreed not to sell any additional shares without the prior consent of Sal. Oppenheim, the sole bookrunner, for a period of six months from the closing of the private placement (the soft lock-up period).
Asian Bamboo signs LOIs for plantation leases of 7,000 ha and an investment in San Feng
Hamburg, 12 October, 2009 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that it has signed letters of intent (“LOIs”) to lease four mature bamboo plantations with a total size of around 7,000 hectares (ha) and to acquire a minority equity stake, of between 30% and 49%, in San Feng Group (“San Feng”).
Two of the new plantations are located in Shaowu, close to some of the Company’s existing plantations. The other two plantations are located in Ganzhou on the border between Fujian Province and Jiangxi Province. The Management Board expects the final contracts to be signed in the first half of 2010 and that the Company will pay around EUR 5,400 per hectare for 20 year leases. This and other terms of the new plantation leases are expected to be similar to those of the most recent plantation leases announced on 22 September 2009.
San Feng is a leading producer of bamboo templates, which are primarily used for housing construction. The company, which is profitable, is expected to have a turnover of RMB 90 million and RMB 150 million in 2009 and 2010 respectively. San Feng’s factories are located in Yong’an, close to Asian Bamboo’s plantations in Sanming. Asian Bamboo’s investment is expected to be in the form of a capital increase which will enable San Feng to expand its annual production capacity from the current level of 40,000 cubic metres to 65,000 cubic metres. It is estimated that San Feng needs six million bamboo trees for its 2010 production. The Management Board of Asian Bamboo expects the total investment, which will be based upon San Feng’s net asset value, to be less than EUR 5 million and that the transaction will close in the first half of 2010.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: “Securing new plantation leases is the foundation of our business model. By the end of Q2 next year, we expect to have a total plantation size of 36,629 ha, which is slightly ahead of our target announced at the IPO. Ever since the IPO, it has been our goal to deepen our involvement in the bamboo flooring/plywood industry. After the investment in San Feng, we will have a stake in a leading and fast growing bamboo template business, which will also become a significant distribution channel for our bamboo trees.”
Share buyback program ; the'll keep buying till they fill the number of 100,000 shares ! Actual 67,500 ....
last buy of of friday at prices of € 19,00
DE000A0M6M79 2009-10-9 105548 BUY 255 19.00 € XETRA 4,845.00
see link :
http://www.asian-bamboo.com/investor_relations/Asian_Bamboo_AG_Bafinmeldung.pdf
Upcoming events ;
6 November 2009: Publication of Q3 Report
6 November 2009: Conference Call Q3
9-11 November 2009: Investors’ and Analysts’ Conference, German Equity Forum, Frankfurt am Main, Germany
the most important you want to know about Asian Bamboo ;
* a green stock, cultivating bamboo plantations, their products are 100 % organic.
* bamboo trees used as construction, furniture, paper & flooring, winter - & spring shoots are sold fresh or processed being sold to the domestic market or export to Japan
* rapid growth of bamboo and flexible choice of harvesting options
* high demand for their products lead to higher prices ; bamboo as a suitable substitute for traditional hard woods(shortage of hard woods) and consumer preference for organically food (higher awareness)
* Strong integrated business model, creates advantages in volume growth and gives economies of scale.
* Government support (National Key Flagship Enterprise, gives tax exempt for 4 years)
* only firm who pays up-front for plantation leases, and saves hereby 17 %
* fast growing company ; Exp. 2010 33 % growth, Exp. 2011 24 % growth
* leader in their bamboo business
* IPO on 11/20/2007 at 17 €, raising 76 Million € to invest in long term lease plantations contracts
* CEO and founder Lin Zuojun holds 57 % of shares
* Expecting at least 1,94 € per share adj. net profit 2009, gives p/e of 9. (guidance of 55 million € revenues and a net profit margin of at least 45 %)
* Price/bookvalue 1,33
* low debt on balance
* share buy back programm, creating shareholder value and already paying a dividend
I had bamboo flooring installed, yet out it goes again.
At least as laminate flooring material, it is way too soft and in no time the floor shows all sorts of deep marks.
Doesn't even look good for various reasons.
This is no comment about Asian Bamboo AG - the company may be a good investment. I didn't do any research.
I like to introduce to you a new green stock you probably don’t know, named Asian Bamboo AG (€18,69), listed on the Frankfurt Stock Exchange, Germany.
It’s my first pure China stock pick ever invested in. I found ‘ the name ‘ Asian Bamboo on a holding report of a Belgium Equity Agrivalue Fund and begun to google it and investigate it.
To opportunity was so big and they told a so intriguing story, I decided to invest by buying my first shares at prices of €5,60 / €5,62. Writing 02-16-2009., my first steps on the other part of the world and be in emerging investments …
The more and more I began reading about China, their growth story, their different businesses their in, their government stimulus packages, … and became fascinated about China !
At the same moment I found RINO on my way. Again could not believe this was for sale at these bargain prices !! Tremendous growth figures and P/E-ratio’s of 3, 4 ?! Unbelievable ! Was there something wrong ?? Missed I something ?? There were still the books writing in black ink, couldn’t found anything wrong. So let me invest, so I did. And glad I did, and still holding shares of RINO.
To make a long story short, InvestorsHUB crossed my pad and I found the board Emerging Chinese Small Caps ! I’m very glad with it, and it’s a fantastic board of high quality ! Congratulations to you. On a daily basis I read the posting. Most often I’m in the background.
But I decided to create a own board to let you know about this fantastic agriculture firm, named Asian Bamboo AG. As you can guess they producing and selling bamboo, as trees and as shoots. It’s all 100 % organic ! There’s a worldwide trend to organic food, and this will increase the demand of their organic bamboo shoots. ../..
There’s a lot more to tell I know, but I’m getting tired. I give you the link on IHUB, so you can reading about it, while I’m sleeping. Back tomorrow. See you.
http://investorshub.advfn.com/boards/board.aspx?board_id=16138
Thx Original, working further on the IBox
Just wanted to say hello tonite.
Glad to see that your board is off to a great start.
Bamboo flooring is cheaper and has a longer lifetime warranty than standard hardwood floors, most generally.
The following days I will working on creating a full company presentation of Asian Bamboo AG in the IBox as the time will allow me, yesterday I made just the start ...
And it seems to me that there are already people who can't wait to read more about this promising agriculture firm. And yes, they are right ! Looking forward to have nice conversations with you. Greetings
I don't think we've had anything like this b4 here on Ihub.
Always ready to look at something new.
Fascinating information in the ibox
good luck with your new board Bamboo!
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Asian Bamboo Group is a Chinese world-leading producer of Moso bamboo trees and organic bamboo shoots.
The company sells bamboo trees mainly to the domestic market as a sustainable alternative to wood. These bamboo trees are mainly used for scaffolding and decoration or as input material for flooring, pulp and paper, and furniture production.
The company's flourishing organic bamboo shoots are sold fresh in agricultural markets or processed for domestic distribution or export to the Japanese market. As organic products they reflect the growing global trend for organic food.
The company currently owns long-term leasing rights for 28 bamboo plantations with a total size of 29,629 ha in Fujian Province, the province with the highest concentration of Moso bamboo resources in China.
Asian Bamboo Group's registered office is located in Hamburg, Germany and the Company is listed on the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol “5AB”.
For more information about Asian Bamboo, please visit our website at:
www.asian-bamboo.com or www.asian-bamboo.de
ASIAN BAMBOO AT A GLANCE
The product : Moso bamboo ;
Moso bamboo is one of the fastest growing types of bamboo. It grows from a shoot into a 20 meters high bamboo tree within even 2 months ! Asian Bamboo AG focuses on Moso Bamboo as it believes the quality of Moso bamboo is higher than other species due to its rapid growth and its suitability for a wide range of uses.
The plantations are 100 % organic as the bamboo leaves function as a natural fertiliser. Bamboo cultivation and production methods adhere to strict international standards, such as the Japanese Agricultural Standard of Organic Agriculture products and the US National Organic Program Standard. Higher margins can be realized given that they can charge a premium based on the characteristic of their products as organic goods.
AB is able to generate a high return from their plantations, as they are harvesting both winter shoots, spring shoots and bamboo trees every year. Winter and spring shoots are harvested annually, whereas the bamboo trees are cut in their fifth or sixth year (in the second or third year after the quality of the trees has improved) Hence, the turnover rate for the entire plantation is 3 years.
TURNOVER RATE | EUR | % | PRODUCT MIX | K EUR | % | HARVESTING CYCLE | ||
1 HA YEAR 2008 | 1 HALF 2009 | |||||||
DRIED BAMBOO | 0 | 0% | DRIED BAMBOO | 1,467 | 6% | |||
SHOOTS | SHOOTS | |||||||
BAMBOO | 921 | 39% | BAMBOO | 933 | 4% | AUGUST TO DECEMBER | ||
TREES | TREES | |||||||
WINTER BAMBOO | 329 | 14% | WINTER BAMBOO | 5,115 | 20% | NOVEMBER TO FEBRUARY | ||
SHOOTS | SHOOTS | |||||||
SPRING BAMBOO | 495 | 21% | SPRING BAMBOO | 9,815 | 38% | MARCH AND APRIL | ||
SHOOTS | SHOOTS | |||||||
PROCESSED | 641 | 27% | PROCESSED | 8,448 | 33% | |||
BAMBOO SHOOTS | BAMBOO SHOOTS | |||||||
2,386 | 100% | 25,778 | 100% |
Efficient and well-run plantations are an intricate business which entails – among other concerns – the right selection of sites in the right climatic regions, soil quality, plantation preparation and management. The percentage felled each year is carefully calculated taking into account the age, structure and density of plantations.
Great flexibility ; AB' specialists evaluating the optimal harvesting mix where also take market trends and demand into consideration.
Asian Bamboo AG’s industry experience and expertise in plantation cultivation gives the company a significant advantage, particularly with regard to newly acquired plantations.
Plantation Growth & Management ;
The plantations are the most important actif on the balance sheet, worth on 06/30/2009 126 million €uro. (total assets 192 mill. €)
Their bamboo plantations are the foundation of Asian bamboo's business. Increasing the size of mature plantations is the single most important factor influencing turnover and profit growth, because turnover and adjusted net profit numbers are closely correlated to the total size of mature plantations.Note ; it tokes 3 tot 6 years of cultivation to turn an immature plantation into a mature one. Most of the immature plantations will turn mature in 2009, 2010 and 2011 ! (see tabel below)
AB has been rearranging plantation leases from yearly payments to once only up-front payments for a lease period of 20 years. As such, these leases are accounted for as long-term prepayments in the balance sheet. The long-term prepayments are financially amortised over the leasing term.
They make substantial savings on these prepayments compared to paying the lease fees on a yearly basis and these savings equal a discount rate of 17%.
This working method of prepayments is a uniqum in the sector of bamboo cultivating.
The size of its plantation area, along with its ideal location, provides Asian Bamboo AG with the advantages of economies of scale over other smaller bamboo providers. As an established business with a strong track record the company also holds a strong sourcing position – an advantage over new competitors when engaging in lengthy negotiations over access to suitable land.
PLANTATIONS | year | mature | increase | immature | total | new leases * | ||
size | | ha | % | ha | ha | ha | ||
| | | | | | | ||
| 31 dec 08 | 18.367 | | 8.262 | 26.629 | - | ||
| 31 dec 09 | 22.229 | 21 | 7.400 | 29.629 | 3.000 | (acquired 22 sept 09) | |
expected | 31 dec 10 | 29.629 | 33 | 7.000 | 36.629 | 7.000 | ||
expected | 31 dec 11 | 36.629 | 24 | TBC | 36.629 | TBC | ||
| 31 dec 12 | ? ** | | ? ** | ? ** | ? ** | ||
| 31 dec 13 | ? ** | | ? ** | ? ** | ? ** | ||
management goal | ? | 70.000 | | | | | ||
* New plantation leases generally generate limited or no output the first year of the lease as some preparation work needs to | ||||||||
be carried out before harvesting can begin. From an accounting point of view, new leases are therefore generally classified as | ||||||||
immature plantations for the first year.** the plans starting 2011 and further will be explained during the year 2009 | ||||||||
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Integrated Business Model ;
Asian Bamboo AG currently sells most of its bamboo trees to trading companies, mainly within China, who sell the material on primarily to manufacturers in industries such as flooring, furniture, construction and paper.
On 18 February 2009 - Asian Bamboo AG announced a strategic partnership with Shaowu Zhongzhu Pulp and Paper Co. Ltd. ("Shaowu Zhongzhu").Shaowu Zhongzhu is one of the leading bamboo based pulp and paper producers in China with an annual production capacity of around 100,000 tons. The company is located in Shaowu city in Fujian province, close to many of Asian Bamboo's plantations. As part of the strategic partnership, Asian Bamboo will be the prime supplier of bamboo trees used as raw material for the production of the company's pulp and paper.
The company’s long term aim is to cover additional stages of the value chain for bamboo trees, such as building its own factory to produce bamboo flooring directly.
INDUSTRY | |||||||||||||||
à | Paper & pulp | ||||||||||||||
à | Businesses of main intrest | ||||||||||||||
à | Flooring | ||||||||||||||
Bamboo trees | |||||||||||||||
à | Construction | ||||||||||||||
à | Other key businesses | ||||||||||||||
à | Furniture | ||||||||||||||
AGRICULTURE | |||||||||||||||
à | |||||||||||||||
à | Processing line | à | Export to Japan | ||||||||||||
Spring shoots | ( Processed shoots ) | à | Domestic market | ||||||||||||
Wintershoots | |||||||||||||||
à | Sold fresh | à | Wholesale markets | ||||||||||||
A steady increase in demand for wood in China, a shortage of domestic wood supply, the government’s support for bamboo cultivation, the availability of bamboo as a renewable resource in China – together, these factors put Asian Bamboo AG in a strong position.
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