*** STONE +33% ****** - 500 Beiträge pro Seite

[zockie1]

1.290 1.300
Last 1.300
Change 0.310
% Chg +31.31 %
Open 1.090
High 1.350
Low 1.090
re-close 0.990
Volume 13,686 K

das ging ja schnell, hatte ja vorgestern aufgefordert
die kurse nach dem nachmischen steigen zu lassen.

macht euch auf die suche und schaut nach was es da für
news gibt.

tschok dee - zockie1

[popocatepetl]

Stone (409) Profit Rockets 34,792%! [ Quote ] [ Chart ] [ NetTraderCards ]
28 Sep ,2000

Very, very small starting point. Unrealized securities gain. No more, no less.

Stone Electronics posted a HK$362.7 million unrealized gain on equity securities. This helped boost
the HK$3.6 million profit it would otherwise have reported.

For the six months ending June 30, 2000, Stone`s turnover decreased 4% from HK$492 million to
HK$472 million. Profit increased from HK$820,000 (EPS: 0.09 cents) to HK$286.1 million (EPS:
27.49 cents diluted) due to the paper gain of their 8% stake in Sina.com. No dividend was declared
(1999: nil). For comparison, interim profit was $6 million in 1998.

Though the Sina.com investment is just a paper gain, one should remember they went public not long
ago and Stone had a pre-IPO investment. Even though Sina`s price has declined since June 30, Stone
still stands to reap a substantial gain whenever it sells out. On the other hand, Sina also contributes
negatively to Stone`s bottom line through its own operational losses.

Stone`s own operational situation was little changed. The cost of sales decreased at a faster rate than
turnover, so Stone posted a small increase in gross profit from HK$58 million to HK$60.8 million. This
improvement in turn was negated by a 50% drop in "other revenue" -- left completely unmentioned --
to HK$13.85 million. However, the decline in this important revenue source was itself completely
offset by decreases in SG&A expenses and a near halving of finance costs. The final result was an
improvement in operating profit -- excluding the paper equities gain of course -- from HK$1.18 million
the HK$2.91 million.

The company said: "Operating profit before taxation amounted to HK$2,907,000, a growth of 147%
over the corresponding period of prior year, which reflects the Group`s strategy of consolidating
businesses has started to show its effect." Quam also believes it reflects small numbers. The
announcement continued: "The rise of operating profit is also attributable to the Group`s policy for the
tight cost control and enhancement in inventory management which leads to a reduction of system
operation and administration expenses." Quam also believes it is attributable to small numbers.

Stone is not a big-number operation. Its operating margins are very low (under 1%), and profit
fluctuates to wide extremes.

Year
1999-12
1998-12
1997-12
1996-12
1995-12
1994-12
Turnover
$933,566
$1,302,319
$1,612,865
$1,509,993
$1,595,925
$1,462,185
Operating Profit
$49,688
($65,545)
$42,321
$40,959
$19,150
$88,526
Exceptionals
($51,043)
$6,700
Pre-Tax Profit
$43,031
($119,839)
$55,200
$41,137
$19,957
$89,925
After-Tax Profit
$2,608
($123,857)
$42,090
$32,536
$13,697
$75,423
Net Profit
$1,394
($89,855)
$42,346
$30,366
$17,233
$63,884


On the business side, the company has two main business lines: distribution of electronic products and
electric lighting, and technology businesses. In March, a distribution JV was formed with Matsushita
Electric Works. According to the company the JV streamlined the sales distribution channel for Stone
Matsushita`s lighting products, and a new sales and marketing strategy was developed. Stone
Matsushita`s sales grew 20% in the period. The company also said that sales of OKI invoice printers
reached HK$89.3 million on growth of 18%. Stone is also getting into sales-tax enabled electronic
cash registers and VAT invoice processors.

On the technology side, Stone has been working on intelligent buildings (wiring flats with TV, phone,
and security systems linked, centralized air-con, lighting, etc.) and B2B e-commerce platforms. An
achievement was noted during the period as Beijing Stone, the 30%-owned associate doing B2B
e-commerce programs, signed on Beijing Sinotrans Road Transport, the sole distributor of Hyundai
auto parts in the PRC. After period events include an August distribution agreement with U.S.-based
Citrix for ASP and server software applications, a September purchase of 71% of Shanghai Stone
which does Geographical Information Systems, and the purchase one week ago of 25% of
Mitsubishi-Stone Semi-conductor for HK$104 million.

With 1.04 billion shares outstanding, at yesterday`s 99 cents per share, Stone is capitalized at
HK$1.03 billion. The P/E is not meaningful. Profits fluctuate with this firm, and the company has not yet
seemed to be able to take advantage of the improving economic conditions. The counter is very
popular for China-inspired speculation but is less suitable for those who are not in the day-trading
game.