Chinese group Camkids (CAMK) - which floated on the Alternative Investment Market (Aim) in December at 88p a share - makes and distributes own-branded children's outdoor clothing, footwear and equipment for the Chinese market. It's progress certainly looks impressive - during 2012, group operating profit jumped 25per cent to RMB267m (£27.9m) and the gross profit margin rose 1.2 percentage points to 37.1 per cent.
The company boasts 1,100 stores, operated through 15 distributors in 29 provinces, and its child-friendly ranges include such items as waterproof trousers, hiking boots, back-packs, tents and sleeping bags. Sales are growing strongly across all of its categories, too - in the clothing segment sales rose 27 per cent to RMB517m, while footwear sales jumped 21 per cent to RMB283m. Although selling and distribution expenses did rise 17 per cent to RMB33.2m - mostly down to spend on advertising, sponsorships, 252 new retail shops and 278 store renovations. Still, even before the £6.4m raised at the flotation, the net cash pile rose 77 per cent in 2012 and management says that it "anticipates declaring an interim dividend".
Housebroker Allenby Capital expects pre-tax profit of RMB317m for 2013, giving EPS of 32.8p (2012: 27.7p), and a RMB0.53 dividend.
CAMKIDS (CAMK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 99p | MARKET VALUE: | £74.6m | |
| TOUCH: | 97-101p | 12-MONTH HIGH: | 107p | LOW: 82p |
| DIVIDEND YIELD: | nil | PE RATIO: | 3 | |
| NET ASSET VALUE: | RMB6.7 | NET CASH: | RMB130.8m | |
| Year to 31 Dec | Turnover (RMBm) | Pre-tax profit (RMBm) | Earnings per share (RMB) | Dividend per share (RMB) |
|---|---|---|---|---|
| 2009 | 324 | 68.8 | * | nil |
| 2010 | 538 | 146 | * | nil |
| 2011† | 742 | 214 | 2.52 | nil |
| 2012† | 913 | 268 | 3.10 | nil |
| % change | +23 | +25 | +23 | - |
Ex-div:- Payment:- *Prior to Aim flotation †Pro-forma figures £1=RMB9.57 | ||||
