Sort if says QEX could treble in price and still be cheap
https://www.nxt.co.nz/files/attachments/274477.pdf
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Sort if says QEX could treble in price and still be cheap
https://www.nxt.co.nz/files/attachments/274477.pdf
Director Danny Chan is experienced.
Not sure whether Bill's brother Conor English will last, as he may take over Bill's seat.
I am still wary of Chinese businesses and businessmen.
Good start for QEX on the bourse with share price ending at 39 cents
hmmm i wonder if it listed on the ASX whether or not it would get the same hype as AU8. It seems all you need in your business strategy are the words "daigou", and everyone goes nuts over there.
I wouldn't touch anything C.E . is envolved in with a barge pole.
Ended the day at 68c . Sellers seem thin on the ground.
Doubled from listing in a month, well done all holders.
is there any holder using ASB? I get this error 'We are unable to accept an order for this stock.' at the time.
Thanks Guys
These guys seem to be growing quickly. 15M$ turnover for first quarter seems good to me.
Big green arrow.
Thanks for starting this thread Winner. You brought it to my attention and hopefully a few other sharetraders as well.
Nice little earner $1.25 today !
2.5m$ raised at $1.15 per share. Issue over subscribed.
All good
Wow anz is showing no sellers at all, don't think I have ever seen that before. even if you were prepared to pay more no one is selling.
Upgraded sales turnover target of 60m$ for FYE 2019. This is nearly twice the 2018 result.
Should be a very interesting meeting tomorrow for this "silent slogger " N Z X's best performer this year especially after the KOM's point to a accelerating business of dairy into China.
Im picking this time next year we shall see $2.50 !!
Reasonable buying interest after yesterdays upbeat AGM with plenty of avenues for further expansion in the coming year, all good imo.
QEX going to play with the grown-ups:
https://www.nxt.co.nz/companies/QEX/...cements/324214
Up 7.7% so far today ATH now and inching to my $2.50 target by this time next year .
ATH now $1.50 getting ready for migration from the AX to NZX main board on 11 th Oct where more investment funds will buy imo.
Surprised this hasn't taken a hit with SML and ATM ...
Big day tomorrow - will there be a coming of age party?
http://nzx-prod-s7fsd7f98s.s3-websit...961/294219.pdf
Danone would be a customer worth having.
If you look these up on the nz companies register, then look up the directors on the same register, you get a spiderweb of company registrations with similar names. Dyor because it was a while ago when i did this so i might have got confused or forgot something in the meantime, but it looked off last time i looked into this company. I wonder if there's trade runoff happening.
I have similar concerns to Percys page 1 comment.
I do not have that prejudice against Chinese businessmen. Usually the Chinese are very competent unlike a number of European businessmen eg the boards and management of NZ listed companies CBL,Intueri,Veritas , Snack, Fletchers etc etc.
It's not a competency thing. Its a cultural thing.
Well I guess only the board and management would know that at this point. On the basis that the QEX is showing strong growth in revenue I would think QEX is very well run company. My view is that these guys are not bunnies so that Danone partnership will be positive for QEX.
If all of you posters had attended the company presentations, agms etc you would realise just how this company is run, I cannot complain as they are making big steps slowly, building blocks being put in place for solid long term future, indeed it has come a long way in a very short time, wasn't too long ago that it was in the founders basement, ( just like Systema ) !!
The charts looking sick,why?
Bit of an update today with a nice jump in sp.
Disc..Purchased a few yesterday,hoping the sp continues to rise.
Lindsay Investment Trust increases its share holding from 5.31 % to 7.22% on recent weakness following on from its very successful foray into Methven Ltd , what do they see that others do not who are selling atm !
Herd buying off the Lindsay ann !!
Terribly undervalued company. One only needs to look at the latest presentation to see the potential of these guys. Massive growth in revenue and that’s just on milk powder. I have a $3.90 valuation on these guys, but that’s just me. Seems to run under the radar for some reason.
Nothing wrong with the company just needs runs under its belt, very hard for a small newly listed company to get instant 5 star rating unless it has massive a truly house hold name, backing and solid financials , patience needed with QEX but the future looks good here, making big steps quietly imo.
What’s not to like about the company:
Strong revenue growth
Cornerstone shareholder in Lindsay
In a growing market with huge demand
Excellent management
Asb and Forsyth Barr showing them off
Big name customers
High reward to risk ratio
Constantly improving efficiency and scale
Nice little pop on more agency tie ups. That man Lyndsay knows his stuff.
When will the good news stop.I can't handle it.
Disgruntled RBC shareholder.
I apologise to holders. You can now expect a 10% drop in SP as I have today entered this register. Wanted to park my SML profits somewhere with high risk and potential high reward. I like QEX's story to date (still gives me exposure I want to China and agriculture) and they seem to be getting runs on the board. Inevitably when I buy a SP drops. Sorry.
QEX is high growth, low profit company. For companies like this I like to track the Market Cap. to Gross Margin Revenue ratio as a proxy for PE (which is not much help for profitless stocks). I use an estimate for forward revenue based either on company guidance or my assessment if guidance not given. On today's SP at 110c, I find that QEX has a ratio of 6.9. That compares with Xero on 32.9, Pushpay on 10.1 and Plexure on 8.5. I don't see why QEX cannot match PPH's valuation, which case the SP would be 162c. Following company guidance at the end of February, we can expect NPAT to double, producing a PE of 23.0 on today's SP, while at 162c, the PE becomes 33.9.
Well placed I'd say http://www.sharechat.co.nz/article/0...g-revives.html
Quote:
“Exports to China were the leading contributor to increases in several primary sector commodities including dairy products, beef, lamb, and forestry products,” international statistics manager Tehseen Islam said. Exports to China were up 52 percent at $1.5 billion in March.
Look who is a Director of QEX and a Director of GMP Pharmaceuticals. Look who is in a whole world of strife with GMP.
Give up? SML
SML's introduction to QEX has just begun
Surely they can't snatch failure out of - Annual exports to China jumped 22 percent in April to top $15 billion for the first time, amid growing demand for beef, lamb, logs and dairy products.
So far they have been pretty successful growing revenue from $10 million to $30 million, and now foretasted to hit $60 million, if they keep this up they could possibly hit $100 million next year.
Annual report due next week, I'm expecting $61 million revenue, $3.5 million net profit.
how much would a 10 year agreement with synlait be worth. Seems and elegant, practical solution to SML's woes.
It'd be a great partnership, you have Synlait who makes the product and QEX that transports it all the way to China, they'd just have to sign up a distribution partner in China then they are all good to go. It would mean greater margins for Synlait and QEX would be doing some pretty decent volume too. Such a deal would benefit Synlait more than it would for QEX since they are already signing up big companies like Danone ($83 Billion NZD company), Swisse (Number 1 vitamin and supplement brand in Australia) and Open Country Dairy (2nd largest premium milk powder exporter globally), these contracts have only just started and we won't see the impact till FY 20.
Preliminary unaudited results out
• Revenue increased to $59.4 million, an 89% (or $28 million) increase on FY18
• Gross profit grew 48% to $7.5 million, up from $5.07 million in FY18
• Net profit after tax increased 61% to $1.9 million
• Placement of New Shares raised $2.5 million
• Migration from the NXT market to the main NZX board
• Service agreement signed with SF Express Australia
• Three-year contract signed for free trade zone and bonded warehouse in Shanghai
• Ranked #4 in Deloitte Fast 50 Master of Growth awards • Significant new distribution agreements signed
• Registration with the International Air Transport Association
And the SP dials back ....tough crowd to please?
However, I am well positioned to ride this horse when it gathers some steam
Results as expected by most of the market, so not much to read into with the results, they are performing well. Should build more confidence in the market that these guys are performing well especially since they are still quite new. With more results and consistency for the market this stock should see a strong re-rate sometime in the future. Hopefully don't have to wait too long, but important thing is the companies putting runs on the board and growing shareholder value, so its a good time to continue building a good position and enjoy the ride.
Sitting on a PE of 31.8 (for basic EPS of 3.65c) may seem high but with revenue growing by 89% and NPAT by 61% it is worth it. Even with the lower gross margin of 12.6% resulting from milk powder sales QEX still comes out cheap compared to other high growth companies on the NZX. Still cashflow negative but debt level is low, as is cash and equivalents. There seems to be a high level of trade receivables at the balance date without any comment on this in the report.
Anyone got any comment on why the share price has taken a massive dive after the annual result came out? I thought it was pretty good result too, but it's down nearly 15%? If it's worry regarding milk into China wouldn't A2M be effected more? Looking at the depth numbers it seems there is more to come also. Could this be someone on the inside bailing out?
What is their MOAT?The majority of sales are in NZ
GP% actually went down,most increase in TO in low margin products,need more capital raise to support future growth?
What is their advantage?
They ship and distribute NZ products into China.
Someone else might be able to clarify the details, but I believe the NZ customers are websites and daigou (https://en.wikipedia.org/wiki/Daigou) who sell products to China - they pay QEX who then buys, packages, ships the product to China (clearing customs) and then distributes it from there. Predominantly infant formula and health suplements I assume/believe.
Their magic sauce is the ability to do all of those things, rather than being another Fedex or DHL, and a "knack" for getting through the customs process.
Pretty much it. Though I would add it is end-to-end service. So they can pick up product here in NZ (Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Queenstown), fly daily to China, process through what is thought to be the only Australasiian bonded warehouse in Shanghai and delivery to the end user in China.
Percent downturn in SP may be market reaction to Chinas recent announcement where they want to see more domestic IF produced, no doubt at the expense of foreign manufactures / distributors. Also a bit of nervousness around trade wars.
Their moat is their established footprint in china - its not an easy thing to set up end-to-end freight into China.
Personally I don't see any issues with QEX, its a growing company below the radar to most investors, look where its come from at launch it was a .25 share issued at .40 now $1.00 on good results so far and good growth prospects .
Minimoke above has given a really good summary so I won’t repeat that. With regard to the variation in price that’s what all shares do and particularly those that are high growth and thinly traded. If you invest in the sharemarket it just goes with the territory.
For such a tightly held register, surprised to see so much selling pressure.
The company runs under the radar, its no surprise as most people don't get to see its day to day operations.
Share price heading down is usually the impatient selling down and taking the profits they already have.
I've been in enough stocks to know this is normal, best to be patient and one day it will be recognized (hopefully).
It happened with Pushpay, I'd ask stock brokers if they know pushpay while it was a 500 million company and no one knew, so wouldn't be surprised if it takes this one a while longer.
Plexure also took its time to be recognised, but it finally happened too.
Given most of my portfolio is currently bleeding red it doesn’t seem too out of place. I figure if everyone else is selling it must be a good time to buy so I have dropped another bundle into my portfolio this week. Hopefully, ww3 doesn’t break out over the weekend and next week will see some enthusiasm return to the market!
Some more good news for QEX with dairy exports up again!
With everything heading in the right direction its only a matter of time.
http://www.sharechat.co.nz/article/6...cord-high.html
I see that a new link from China/NZ/Sth America is been muted using nz as a inbetween port.
Any benifits to QEX with this?
I am bemused by the market reaction to the release of the Annual Report. The financials are all the same as previously announced but the SP drops by nearly 6%. The only item that caught my eye was that they have backed off in Australia and that their revenue in Australia actually declined. I cannot remember if that was previously indicated or not.
Current initiatives to increase margin with other products following big increase in turnover with low margin milk powders is good.
It was interesting seeing the staff photo. Apart from Connor English, all are Chinese apart from one other. No doubt Mandarin is an essential requirement with this company. Staff numbers at 32 are lower than I would have thought for a logistics company with this amount of revenue. Some automation is applied and I guess a lot of the handling is done by other parties.
Might have to buy some more. Sooner or later something will have to happen in this space surely?
Be careful of the big picture in China: consumption is down, manufacture is weak, factories lay off staff. Now it's time to be cautious if a company expose too much towards China.
Someone wants out?
Yeah someone doesn't want to wait. In times like these just focus on the fundamentals!
It's possibly someone might know something, but on the present we can only assume the company has been upfront with us and that this stock is a very illiquid one so anyone wanting to sell will naturally lower the price. Its never comfortable waiting while the price drops, but this is a natural stock market tendency with growth stocks, they tend to fly up and down like a roller coaster and for the investors investing in it they need a good stomach for the ride. Having been an investor in Plexure and Pushpay, they were stocks where you'd feel extremely uncomfortable holding into the red (of course they aren't now), I always questioned myself, but I based my beliefs on fundamentals and if those have not changed then the company is believed to be building shareholder value consistently and waiting to be realised eventually.
As long as the cornerstone shareholders still believe in the company then we should too.
Brendan Lindsay 7.22% - His company was built on the success of being able to export their products overseas, so if he sees something special I'm with him.
Ronnie Xue 79.52% - the CEO has all his wealth in this company, he has more interest than anyone to make this company a success. Just the speed which this company has grown at shows you the extreme work ethic that you want in a CEO for a growth company.
Next financials we will all be focused on revenue growth and whether they have been able to increase margins.
I haven’t sold mine, although I am now under water. Tempted to buy more but just worried about how much capital I have tied up on a stagnant stock. Still a believer in the end game, but also wanting to retire sooner than later. Trying to pick the fastest horse is always a problem!
Down she goes :-/ this is really starting to make me grit my teeth...
Bought a little more yesterday... much to my dismay today.
also (probably nit picking) but the CFO Resigned a little while back now, but the website hasn't been updated. (hopefully they are just signing deals and making plenty of money)
Disc: Holding Tight
Possibly a reaction to Fonterra's woes.
Relatively light trading driving the price down on the back of no news.
Throw them in the drawer and hope that in a couple of years from now I haven't lost my shirt.
I wouldn't worry too much yet, the same thing happened at the lack of news last time until a trading update. NZ export of milk powder to China is up roughly 67% on the same half of the year compared to last year so QEX should hopefully see a lift in that, we have our agreements with Danone and Swisse which will materialize this FY. We have larger warehousing and from the last report a lot of stock, which according to Ronnie gets sold within 2-3 weeks on average. Last year this time there was a trading update, or slightly early so I assume lack of news would have driven the price down - no matter the reason it's just the market chattering and the company will continue doing what it does best unless we're told otherwise so no need to grit your teeth together!
Well the price on this one is at a very low entry point. As I asked some time back with Kathmandu before it went up in price..... When is the good time to buy into this share? I expect it to rise now that I have considered purchasing.
If nothing special to announce then it will be the interim financials in a few months