China Growth Stocks

[Brennus]

Yeah. That was for GU's reporting period ending 30jun09. That's the same reporting period that CCGY already had their conference call for.

This is the conference call I referenced earlier.

In that call they mentioned that their feedstock costs were down about 8% yoy, but depressed selling prices kept biodiesel margins down around 4%. GU is going to be buying as much feedstock in the region, so expect that to continue to help feedstock costs.

Meanwhile, biodiesel ASP went from 3608 RMB/ton in 1q09 to 3870 RMB/ton in 2q09. Looks like GU had a little higher average selling price due to their geographic diversity. Probably the price in CCGY's selling region is a little lower due the the GU/CBI/CCGY triumvirate. Guess that makes CBI the low cost producer...but only because they qualify for the tax break/refund. Hopefully CCGY will be able to achieve that same status soon.

In the meantime, CBI should be reporting sometime this week or next. It will be interesting to hear what they have to say. Based on the way that stock has been acting, people are expecting to hear good things.