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Home Value Stock Idea Amrican Lorain Corp. (ALN)

Amrican Lorain Corp. (ALN)
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1:15 pm
December 13, 2009


knudsen1983

Member

posts 3
5

Thanks for your reply.

P/E of 1,4 is for december 31 2008, Current is about 5 

Its a very useful information about many korean people don't buy chinese products, This give a big limit ALN developing in sale etc.

12:29 pm
December 13, 2009


Jae Jun

Admin

posts 1336
4

Post edited 5:29 pm – December 13, 2009 by Jae Jun

I don't know why so many Chinese companies include the word "American" in their name. This isn't a practice that I like. Just makes me think that they want to sell their stock to the public more than their products.

On a personal note, Chinese food companies are known for using all sorts of banned substances to try to bulk up their products. Their food and safety standards are extremely shady.

e.g.

http://blogs.wsj.com/chinareal…..d-scandal/

http://www.usatoday.com/money/…..ndal_N.htm

http://www.chinadaily.com.cn/b…..757788.htm

and the list goes on. Which is why my family and about 90% of the Koreans I know stay away from Chinese products.

Financials

History is far too short to conclude anything. FCF is negative each year. Even in ROE is high, in the end, they burn through it all by the end of the year.

Where did you get a PE of 1.4?

The FCF yield (FCF/EV) is 2.38% so doesn't seem like a good return.

DCF I get is $1.97

There just isn't enough history to analyse a company like this. 1 year of financials is not enough as Chinese companies are renown for not being friendly to shareholders and there is also the issue of politcal risk.

6:25 am
December 13, 2009


knudsen1983

Member

posts 3
3

I have been following American Lorain (ALN) because it has given a good return on Equity and developed its sales and revenue. Furthermore the company has little Debt. The company it’s trying to make it’s products to brand names, which I see as a big plus.

I the following I will make a short presentation of the ALN.

ALN is a food manufacture with production in China. The company products are categorize in three products groups: Chestnuts products, convenience products and & frozen, canned and bulk products. The revenue is conducted from China (26 regions), Japan and Korea and 43 other countries.

Financial Facts for 2008:

Revenue:         $132 millions

EBIT:               $20.93 millions

Income:          $14.7 millions

Total Assets:    $107.7 millions

Liabilities:         $45.12

Total Equity:   $62.58                                           

BVPS:              $2.5

P/E:                1.4

ROE:               23.3 %

No. of shares: 25.18 millions

Pros:

Try to come in to the American market

Tries to makes its products brand names

Excellent develop in Sales, EBIT & income

Low debt

Excellent return on equity

Selling in growth market (China)

Cons:

No long operating history

 Increased it number of outstanding shares

Seems to come out with a lower Net income in 2009 compared to 2008

Valuation

I get a DCF price around: $ 8 pr. share

Your comments

I like to hear any comments on this company

7:12 pm
December 12, 2009


Jae Jun

Admin

posts 1336
2

Hi knudsen1983

It would much more beneficial if you could provide your opinion and insights into the company first.

  • Why have you been following it?
  • What are the pros and cons for people who never heard of it?
  • What do you think it is worth?

4:33 pm
December 12, 2009


knudsen1983

Member

posts 3
1

Hey

I have been following the company American Lorain Corp. (ALN) for a while.

I find it quite interesting, it seems cheap and seems to try to make a brand out of it products.

Does anyone have any op ion of the ALN ?

  • Pros and Cons
  • What do you think is worth?
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