A comment from a swedish forum by "Petrejus".
- I am not God and I can not control the weather. There are always risks involved in investing. But I think we're doing the right things right now and if normal conditions prevail, we believe we can grow by 100% per year over the next few years, "said CEO of Sino Agro Food, Solomon Lee last night in Stockholm.
Asked about the outlook, he declined friendly and said he was prevented by the rules for IPOs. Later in the evening in an informal context, with a salami and brie ciabatta-in his fist, he hinted that the projected profit for the year of 29 cents per share, perhaps it felt slightly too low as well as guidance for next year at 49 cents.
Siaf strategy has been to tie up partnerships with new joint venture partners at a brisk pace. These JV partners have a relatively large part of the new company and Siaf retains a small portion to make it as attractive as possible for new partners to make money and enter into collaborations with Siaf. This allows Siaf rapidly grow their business and ultimately have a large exposure to one of the huge Chinese market. Today Siaf a relatively small company with a niche product, but the strategy adopted is to provide means for rapid growth.
Throughout the process of building a JV Siaf earn money by selling its concept and its know-how to its JV partner. JV-partner assumes the cost of building new production facilities. Rapid growth will reasonably affect the stock price in a northerly direction, even during the growth process.
Solomon Lee shrugged, shook his head and smiled when he was asked about the company's future capital. -I Do not Need Any Money.
Peter Tan, who is responsible for fish breeding part of Siaf activities, described in detail the intricate systems that make it possible for Siaf to charge more per fish (water) surface than conventional fish suppliers. Siaf can produce 25 tons of fish per 72 square meters surface, while conventional vendors producing 0.5 tons per 660 square meters. Siaf need one person-year labor of 50 tons of fish, conventional producers need a man-year labor to 6 tons of fish. For it must be added to the fish Siaf produce through organic farming method is a much higher purity and quality. Production methods will not only end product is of much higher quality than comparable products, they also mean that production is so much kinder to the environment than anything that exists today in China and that in itself is a very strong trump card for Siaf.
For it will produce the so-called drakfrukterna, beef cows and dairy section.
After getting to talk to Siaf management, we think that much of what we were told almost sounded too good to be true. A large proportion of visitors to Siaf Stockholm Presentation of the week will certainly be found with his finger on the purchase button on Monday.
Siaf is in a win-win-win situation. Their JV partners earning good money. Chinese authorities get expert help to improve and establish a strong and high quality domestic food production. The Chinese consumers get good food. Siaf earn money the whole way. If you just may walk free from extreme events or natural disasters. we believe that Siaf will make its shareholders happy in the coming years.
