key driver of profitability

Return=Profit Margin x Turnover.

PM depends on R&D ability which is company specific, there's still room for Mesbon to improve its products differential rate, because a typical nylon producer in North America can produse 100+ specifications, while Mesbon is not even 1/3 of that level, so it's yet to fully achieve import replacement. (On the other hand, Mesbon is not as profitable as Huading Nylon who has 60% differential rate and 20% PM). For those intereted in looking at what a $1B company looks like here's the link: http://www.hdnylon.com/en/index.aspx

Turnover largely depends on macro demands. Europe is gone for the next two years, America is one of the I don't know region at the moment. However China should be the spot light in 2012 as any monetary easing in light of inflaton slowing down will stimulate domestic demand.

Taken as a whole, if Mesbon can increase its differential rate gradually in the future to 50-60%, we should expect improved PM. And high differential rate also warrants more sales in the import replacement market, increasing turnover and ultimately increase our returns.

BTW, does anyone know when would we get an update on the company's operations?