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Shengda tech (nasdaq sdth)

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  1. [verwijderd] 26 november 2007 12:04
    SDTH ongeveer 25% gedaald na de laatste -uitstekende- kwartaalcijfers, in een slechte markt. Rustig wegleggen en af en toe naar kijken. Fundamenteel sterk en halverwege volgend jaar weer recordwinsten, met hun uitgebreide productiecapaciteit. Let trouwens ook op American Oriental Bioengineering (AOB). Nu nog te koop rond $11,-, maar koersdoelen rond $20,-. Uitstekende cijfers en vergelijkbaar groeipotentieel als Shengdatech. Sterk ondergewaardeerd.
  2. [verwijderd] 30 november 2007 16:40
    Ha Max. CC niet beluisterd, maar lees wel positieve verhalen erover op www.investorvillage.com. SDTH stijgt trouwens zeer gestaag door. Met dit sentiment, positieve berichten etc. is het denk ik een kwestie van tijd voor we de $10 een keer zien. Eerst maar geleidelijk richting all time high.
  3. [verwijderd] 30 november 2007 20:26

    $8,20

    jips heb het investorvillage forum van sdth even nagelezen...hele positieve speach is dat geweest dar op roth. ook over hun toekomstplannen.

    tis een jong bedrijf met echt een potentieeel om een bedrijf met honderden miljoenen omzet te worden. Ik ben eens benieuwd hoe hun plannen zullen zijn. op naar de 1 miljoen npcc productiejaarlijks;-) dan spreken we over koersen van tig dollars .enfin dan zijn we wel volgens mij 5-10 jaar verder..ach ja we hebben de tijd.

    matter of time voordat we de 10 halen ja voor de kerst nog m.i. als de beurs zich maar zijwaarts of opwaarts blijt bewegen.
  4. wu chang 8 december 2007 10:01
    Check on China: ShengdaTech, Inc.

    Jennifer Schonberger | Dec 06, 2007 6:20am EST | User Rating 5

    Investors are having great chemistry with ShengdaTech, Inc. (Nasdaq: SDTH). The Chinese manufacturer and seller of nano precipitated calcium carbonate (NPCC) and coal-based chemicals is ramping up production capacity, which is translating into stellar top and bottom lines.

    While the company still generates a pretty penny from coal-based chemicals such as ammonium bicarbonate and liquid ammonia, which the company then markets as chemical fertilizers and raw materials for the production chemicals, ShengdaTech’s revenue growth stems from its NPCC production. NPCC is extracted from limestone and used in the manufacturing of paints, rubber, plastic and tires.

    NPCC production climbed to 130,000 metric tons (MT) from 30,000 MT in the past year. The Chinese small cap brought 40,000 MT of NPCC online in July and jumpstarted construction of 60,000 MT of NPCC capacity at a new facility in Xianyan City, Shaanxi Province in September. The new lines are expected to be completed in the first quarter of 2008 and will begin contributing to revenue at that time, according to ShengdaTech’s CEO, Xianghzi Chen.

    Once capacity at the company’s new facility is completed, total annual production capacity is expected to reach 190,000 MT.

    In addition to strong product production, the company is creating efficiencies within its operations. ShengdaTech upgraded equipment used in its chemical factory in the third quarter, which created operating efficiencies that offset decreases in chemical prices and resulted in record gross margins in the third quarter.

    The proof is in the pudding. Capacity is being ratcheted up as demand is surging and third-quarter results are evidence that this company is a rising star. Net income surged 62.7% to $7.8 million, or $0.14 per share, from $4.8 million, or $0.09 per share, in the third quarter of 2006. Revenues swelled 44.4% to $27.2 million, from $18.8 million in the third quarter of 2006.

    Revenue from the NPCC segment was $13.1 million for the third quarter of 2007, up a hefty 144.8% from $5.4 million in the third quarter of 2006. Revenue from the chemical segment was $14 million, up 4.4% from $13.5 million in the third quarter of 2006.

    The NPCC segment contributed 48.3% to total revenue, while the chemical segment contributed the remaining 51.7% of total revenue compared with 28.5% and 71.5%, respectively, in the same period a year ago.

    For 2008, Toll Cross Securities analyst Alex Harbin is forecasting top line growth of at least 35%, with NPCC business growing at a 70% to 75% clip in 2008, and the chemical business remaining flat.

    Aside from employing NPCC in the manufacturing of paints, rubber, plastic and tires, which has materialized in the form of strong results, the company remains on the forefront of innovation for new NPCC applications through continued research and development. These new uses include applying NPCC to the area of latex and for use in polyethylene and polypropylene.

    “Polyethylene is the most widely used plastic in the world,” said Harbin. “Translate that to use in China and the company could potentially generate $100 million from the plastic and $500 million from the NPCC.”

    While ShengdaTech has flourished in the domestic market, the company is also in the process of expanding its international scope. The company has already penetrated South East Asian countries, such as Malaysia and Singapore and is currently in discussions with potential customers in Japan and South Korea to use NPCC in PVC and rubber. The company has also mentioned teaming up with a major North American paper manufacturer to work with a local university to develop paper using NPCC.

    ShengdaTech (SDTH) is rapidly becoming a domestic player in the China market and gaining traction internationally, as demand for its NPCC product remains robust. With a committed customer base, a tenacious R&D arm and a thriving market, the prospects for this little company are bright.

  5. wu chang 8 december 2007 10:02
    Interview with ShengdaTech CEO Xiangzhi Chen

    Jennifer Schonberger | Dec 06, 2007 6:10am EST | User Rating N/A

    ShengdaTech's Chief Executive Officer recently responded via email to some questions posed by SmallCapInvestor.com. The questions, and his answers, follow.

    What have been some key factors behind the company’s performance?

    The first factor is production and R&D. We have a proprietary technology, which is our primary competitive advantage for producing high-quality NPCC products. We also are successfully expanding the use of NPCC for many major areas such as tires and latex. Our customers appreciate the stability of our products performance in their products. As we move forward with our R&D programs to explore new application areas and enhance the current ones, market demands for our products keeps growing. For instance we are working on developing NPCC for use in polyethylene and polypropylene.

    The other factor is the market. Due to our advanced technology, premium product quality and continuous marketing effort, the demand for our NPCC products from existing customers, as well as number of new costumers is growing. Meanwhile, we have also made meaningful progress in expending to overseas markets.

    What are your strategies to bolster near-term and long-term growth?

    Near-term plan:
    We will continue developing the production capacity of our NPCC factory in Shaanxi.
    Long-term plan:
    The international oil price is expected to go higher than $100 per drum, and China has become the second largest oil consumer in the world. China’s diesel fuel output still can’t satisfy the rapidly growing demand for energy, and many diesel-powered vehicles have to stop running because of shortage of supply. Due to the government restrictions, CNOOC, CNPC and Sinopec are also facing big challenges too.
    China has 27% of the coal reserves in the world. According to this, the future trend of the energy industry is to fully take advantage of available natural resources to develop alternative energy and reduce the reliance on oil in China. So we will watch closely the market condition and tap into the coal-based chemical industry again, building and acquiring targeted coal-based chemical companies.

    Is the opportunity for growth shifting to the NPCC segment of your business and why or why not?

    Yes. Our new NPCC facility in Shaanxi is ramping up to reach full capacity. We also enjoy abundant resources and cheaper coal, electricity and other powers. Considering these advantages, we believe NPCC will remain a key drive of our future growth.

    However, we would not give up our legacy chemical business. We will strategically adjust this part of business according to the market condition to achieve the best financial benefit.

    How long will revenues continue to accelerate before we see slower growth?

    In the NPCC industry, we have the world-leading technologies, unique access to high-quality resources and professional R & D team. All these create entry barriers to our competitors. With this, we believe we will be able to maintain continued growth and the leading position for a relatively long period of time.

    What do you see as the most significant trends currently affecting the company?

    The Chinese government is still working on the copyright protection regulations and implementation. Therefore, many low-quality products are being sold at a cheaper price. This can make it difficult for manufacturers of higher quality / higher priced products to compete with some high-quality manufacturers scaling back development programs and reducing investment in R & D efforts.

    You had a lot of repeat customers in the third quarter, what is your plan to garner more new customers?

    1. Strong technical support
    We have a world-leading technical support and professional R&D team. They are able to increase application for areas we are already in. They also track product performances of existing customers and use the data as reference to promote our products to new customers. We also offer our customers unique receipts and comprehensive technical support services.
    2. We have unique advantage in sourcing cheap and high-quality limestone as raw materials.
    Given to the above two points, we believe we will be able to keep long-term relationship with our existing clients while continuing exploring new application areas and attracting new customer so that we can maintain a our leader position in the industry.

    What is your current market share compared to a year ago?

    As we increase the capacity and entered new application areas, our sales have increased 180% compared to that of a year ago.

    How does Shengdatech plan to maintain a sustainable competitive advantage in the industry?

    The company has been able to maintain a leader position and unique competitive advantage in China’s NPCC industry, because we are really focused on R & D and have built state-of-art team with talented engineers and researchers. We also pay attention to the latest market intelligence so we can develop most advanced proprietary technologies to produce NPCC products to meet market demands.

    What are some potential barriers to continued growth?

    At the macro side, China’s market economy development is still more or less interfered by the government, which may exert some influence to the company too. Also, more and more international companies enter China market, increasing competition within China.

    What do you say to potential investors who are reluctant to invest in Chinese stocks (yours inclusive) out of fear that the Chinese asset bubble is beginning to top out and may burst?

    This is a really big topic and the management is afraid that their understanding is not enough to cover every perspective. The whole world has recognized the high-speed growth of China’s economy. Personally, I believe there is a certain bubble existing as speed always brings in some risks. But I can’t speak of how big and how dangerous the bubble would be, and I also believe that few economists can precisely predict either.

    What are ShengdaTech’s growth prospects for 2008? What are your expectations for revenue and net income growth?

    By the first quarter of 2008, we expect to add a new production line that has 60,000 metric tones in production capacity. It will take four to five month to reach the full capacity. We will consider giving guidance for 2008 at an appropriate time.

    Will you be going back to the equity markets in the near or mid-term to issue shares to raise capital? Are you planning any share repurchases?

    Currently, we have enough cash to support our above expansion plan. We don’t have a plan to issue new shares or buy back shares.

  6. [verwijderd] 27 februari 2008 12:28
    quote:

    Noviomagus schreef:

    Heeft iemand anders deze groeiparel ook nog in bezit? Hebben een mooie stijging meegemaakt de laatste maanden en zijn de laatste weken flink gecorrigeerd. Over enkele weken jaarcijfers.
    correctie dat ie heeft meegemaakt was eigenlijk maar minimaal gezien ie al zo'n mooie weg afgelegd had.

    Lijkt me toch een aandeel om in het vizier te houden.
  7. [verwijderd] 27 februari 2008 14:22
    En vers van de pers:

    ShengdaTech Introduces NPCC for Use in Polyethylene



    Adds New Customer in Singapore



    TAIAN, Shandong, China, Feb. 27 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech Inc. ("ShengdaTech" or "The Company") (Nasdaq: SDTH) a leading manufacturer of nano-precipitated calcium carbonate ("NPCC") and coal-based chemical products in the People's Republic of China ("PRC"), today announced it has successfully developed a new NPCC product for use in polyethylene (PE) plastic products.

    After more than a year of collaboration with Peter's Polyethylene Industries Pte., Ltd. ("Peter's Polyethylene"), the largest plastic manufacturer in Singapore, ShengdaTech is launching NPCC for use in PE products. PE is a highly attractive plastic as it is the most versatile of all plastics and frequently used in consumer products. Common end uses of PE range from plastic bags, shrink wrap for plastic drink bottles, food packaging and drink containers. The use of NPCC in PE products significantly improves the mechanical property of the synthetic plastic, increases its heat-resistant capability and reduces the quantity of heat of combustion and secondary pollution. It can also enhance the PE's printing quality and surface smoothness. Moreover, the inclusion of NPCC in PE products reduces the amount of polyethylene needed thereby reducing the overall cost of raw materials. According to Univation Technologies, global PE consumption is expected to be 87.4 million metric tons by the year 2010 as global demand for PE is expected to grow at a 4.4% CAGR.

    "We are excited with the breakthrough of our NPCC application for use in PE products. This is a major development in our efforts to expand NPCC for use in other plastic applications beyond PVC," commented Mr. Chen, CEO of ShengdaTech. "Our progress on the application of NPCC for PE products not only opens the door for new market opportunities, but also expands our efforts in developing our overseas penetration. More importantly, we believe the Asian region will be the world center for polyethylene growth."

    Peter Polyethylene is initially incorporating NPCC in its PE-injection plastic products such as plastic barrels for industrial use and polypropylene film. ShengdaTech and Peter Polyethylene continue to collaborate on R&D of NPCC for use in PE for a variety of polyethylene products.



    About ShengdaTech, Inc.

    ShengdaTech is engaged in the business of manufacturing, marketing and selling nano-precipitated calcium carbonate ("NPCC") products and coal-based chemicals for use in various applications. The Company converts limestone into NPCC using its proprietary technology. The unique chemical and physical attributes make NPCC a valuable ingredient in tires, paints, polyvinyl chloride ("PVC") building materials and other products. NPCC enhances the durability of many products by increased strength, heat resistance, and dimension stabilization. The Company is also engaged in the manufacture and sale of coal-based chemical products namely ammonium bicarbonate, liquid ammonia, melamine and methanol. The Company markets and sells its coal-based products mainly for chemical fertilizers and raw materials in the production of organic and inorganic chemical products, including formaldehyde and pesticides.



    Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the tire industry, changes in composition of tires, ability to attract new customers, ability to increase our product's applications, ability of our customers to sell products, cost of raw material, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission.


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