Asian Citrus Holdings Ltd EPIC ACHL

WEB SITE : http://www.asian-citrus.com/gyen/index.php

Shares in issue circa 61 million

Interim period end 31/Dec

Full year end 30/Jun

AGM 14th Nov 05

Est next int : 29/03/06 Est next prelim : 11/10/06

Diluted EPS for year end 30/06/05 34p

NAV : 126p per share

PE ratio : 3

Info : LINK

In my opinion this could be a bargain and a potential large riser within 12 months if the sun keeps shining. Its a plantation share yes, so its not a trading share but one to invest in by tucking a few k away, and as a plantation share it has its risks, the natural occurring type ! But on a last year PER of times 3.52 on the diluted EPS figure there is too much risk in the price and a times 15 rating of current year forecasts would be more appropriate. The market in China is of course massive and oranges and OJ are only now starting to become more popular as the trend of fitness and vitamins starts to take off in China.

The potential is massive and the new supermarket agreement (LINK HERE) shows that margins are improving in the form of direct to supermarket deals, and that a deal with a supermarket chain (Guangxi is but a tiny province of China with a very small population level compared to others) in one province can take up a large amount of production.
The other benefit is that it is well known that the RMB will be appreciating to the US dollar over time, gradually. The RMB is at near historic high levels against sterling due to the weakness of the dollar and the conversions in results are at 14.25 where a more normal level is around 12 RMB to the pound (I can still remember when we used FEC and still have some locked away somewhere ).

The rise of the RMB over time will again assist in sterling profit terms. The company has also stated that from year end 2006 a dividend will commence being paid so this all adds to my large rise within 12 months cauldron thinking. I think Evo forecasts will be beaten as well.

Evolution Securities forecasts pre-tax profits of 14.6m for 2006, with EPS of 24p and a dividend of 7.3p.

People will say plantation, people will say China and a multitude of reasons of risk but from my experience in China ventures by Overseas Chinese (HK, Taiwan and Macau) do well and not to be confused with real foreign ventures which tend not to do well.

Final comment is a quote of the Shareholder Value paragraph of the full year results

Shareholder Value

To maximize shareholders' value, the Board is committed to observing a strict set of internal financial policies. Depending on the capital expenditure plan and working capital requirements of the Group, the Board intends to adopt a dividend policy that will recommend a dividend payout equivalent to at least 10% of the net profits starting from the year ending 30 June 2006. As opportunities
arise, management will consider different ways of fund raising in order to cater for the Group's investment needs whilst maintaining an appropriately structured balance sheet. As a yardstick, to avoid over-expansion, management considers that it is prudent to maintain gearing of less than 40% of the Group's net assets and an interest coverage of not less than four times.

But DYOR ! and remember its a plantation stock !


Major shareholders :

Market Ahead 41.96
Huge Market 40.31
Henderson Global Investors 4.28
Kingston Corporate Finance Limited 3.26

Good to see we start the year on a blue note :)

And another blue day ahead :)

They must be getting short of stock now, paying nearly 159 for a sell there.

Has anyone got the on line buy/sell limits ?

There have been a lot of buys on this stock over the last few weeks, but the price has been relatively sedate. Am guessing that there is a bit of stock overhang out there.

tallsiii no overhang I think, when the bid got to 160p last time, a few sellers appeared (taking profits for year end), that is now taken up and its ready to move up again, expecting 170p bid some time soon on its way up and over 250p this year.

Yuan rises to record dollar level (4th Jan 06)

http://news.bbc.co.uk/1/hi/business/4579502.stm


Good for ACHL and FTO amongst many others :)

does anyone no why the price drop in the last few days

I would say just profit taking, consolidation was due, it will go one until new buyers, or old ones returning come back in, and then it will move up to the next level. The question is what level will the buying start ? I do not know.

PP do you still anticipate a 250p price target

Yes, but again that target is a 12 to 24 month target, and its not going to be plain sailing all the way, it will go up, and it will come down, but the story remains solid, so yes I would have a 250p target for about 18 months time I think.

profit taking is inevitable. However, I'm still here and holding and waiting for the next move up

If we get much more profit taking, i'll be buying some more.

Buyers seem to be returning today to ACHL

Yes tempted to top up.

Made a strong move yesterday, another new high.

And another new high :)

Yes-Great

With this and EME and LEAD and VOG you must be coining it in PP!

tallsiii, things are going very well, with a number of my holdings. Well they did say that for me, this year of the Dog would be very profitable :)))

Got into ELP this morning, high risk/high reward oiler, not for widows or orphans, but presently around 2 weeks from news on their big "company maker" drill Jaguar. Not for everyone as its certainly high risk ! Hoping my doggy influence will make the difference for me ;)

Asian Citrus Holdings Ltd
27 February 2006



27 February 2006

Asian Citrus Holdings Limited
('Asian Citrus' or 'the Group')


Additional order from regional supermarket chain

Asian Citrus, the largest orange plantation owner and operator in China,
announces that it has been awarded an additional supply contract from Guangxi
Yonghao Supermarket Company Limited ('Yonghao'), a local supermarket chain with
more than 20 outlets in the Guangxi Zhuang Autonomous Region of China.

The additional contract, entered into at the request of Yonghao, is to supply
Yonghao with an additional 2,000 tonnes of oranges from the coming Summer Orange
crop in 2006. The estimated value of this new contract is approximately RMB11.3
million (approximately 800,000).

This follows the award of an initial contract with Yonghao, announced on 26
October 2005, which had a value of approximately RMB25 million (approximately
1.75m), for the supply of 5,000 tonnes of oranges up to June 2006.

In addition, the Group has commenced the supply of oranges to certain
supermarket chains in Hong Kong through a joint venture company, which was set
up in August 2005 with a local Hong Kong business that has been involved in the
fruit trading business for over 20 years.

Tony Tong, Chairman and CEO, commented, 'The success of our first move into the
supermarket sector was always going to be vital for the Group's future
development in the wholesale arena and I am delighted that we are clearly
demonstrating that success with this additional order.

'Our oranges are proving to be a real favourite amongst local people. The
quality of our oranges has clearly been well appreciated by the public and we
have developed a good relationship with Yonghao. The additional order from
Yonghao is a proof of our oranges' success in the retail market and we are
confident of concluding further supermarket contracts in the future.'

About Asian Citrus Holdings Limited

Asian Citrus Holdings Limited is the largest orange plantation owner and
operator in China and has two plantations in the Hepu county of the Guangxi
Zhuang Autonomous Region and the Xinfeng county of the Jiangxi province of China.
Its primary goal is to sell quality oranges at an affordable price and in so
doing, strengthen its position as a leading, mechanised and industrialised
orange grower and distributor in China.

For Further Information Contact:

Terry Garrett/ John Moriarty/Helen Thomas
Weber Shandwick Square Mile 0207 067 0700




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