Sino Hua An Q3 Earnings.

Blogged previously:

1. Regarding Sino Hua-An
2. More On Sino Hua-Ann
3. Who wants Sino Hua-An?
4. Still Who Wants Huann?

The key issue said was..

And let's look at the company's net profit margins.

1) 07 Q4 Revenue 233.375 million. Net Profit 37.442 million. Margin = 16%.
2) 08 Q1 Revenue 290.798 million. Net Profit 35.567 million. Margin = 12.2%.
3) 08 Q2 Revenue 434.426 million. Net Profit 36.916 million. Margin = 8.5%.

How would you interpret such earnings?

Look at the revenue, its sky rocketing but the company has NOT been able to turn the extra, extra revenue into more cash and instead the net margins are deteriorating. From 16% to just 8.5%.

How? How would you evaluate such earnings? Good? Average? or Poor?

Sino Hua Ann reported its earnings tonight.

The following was its performance.

08 Q43 Revenue 496.993 million. Net Profit 11.711 million. Margin = 2.3%!!!!!!!!!!

Now surely this is a concern, yes?

You have earnings declining at a drastic pace and the margins right now is razor thin!

Balance sheet, check out the trade receivables! Did you see how it rose from 72.308 million (a quarter ago) to an incredible 203.3 million???

And the cash is depleting too!

How?