Better late than never "Leading Chinese agricultural producer, Dongfang Modern Agriculture Holding Group Limited (ASXFM), today announced another year of record revenue for the full year ended 31 December 2018. Revenue for the year was RMB 1.173 billion (A$244.9 million), up 10.4% from RMB 1.063 billion (A$221.8 million) in the previous year, reflecting continued strong demand for the company’s camellia, navel oranges, tangerines and pomelo. Net profit after tax was RMB 430 million (A$89.7 million), down 8.0% from RMB 467 million (A$97.5million) in the previous year, reflecting lower productivity of recently acquired orchards and financing costs associated with the company’s acquisition strategy, including the acquisition of Bio Health Pharmaceuticals Pty Ltd. Commenting on the result, Executive Chairman Hongwei Cai said that the company achieved a seventh consecutive record harvest, reflecting the acquisition of a 526-hectare camellia plantation and a 354hectare navel orange plantation in 2018. The company sold 283,734 tonnes of fruit and camellia products, up 7% from 265,496 tonnes in the previous year. Delivery prices for 2018 were in line with 2017 prices. “This was a solid result. Excluding the impact of recent orchard acquisitions, our crop was in line with last year’s for all harvests. We have not yet achieved the full benefit of our new navel orange and camellia orchards and anticipate our cultivation techniques will increase their yield in future harvests, strengthening margins. “Our primary strategy remains to aggregate orchards within China’s agricultural sector, and today we operate plantations on 11,641 hectares of land in the Ganzhou Special Citrus Zone which is acknowledged for producing high-quality citrus products.”
BUT STILL NO DIVIDEND
DFM Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
FM), today announced another year of record revenue for the full year ended 31 December 2018. Revenue for the year was RMB 1.173 billion (A$244.9 million), up 10.4% from RMB 1.063 billion (A$221.8 million) in the previous year, reflecting continued strong demand for the company’s camellia, navel oranges, tangerines and pomelo. Net profit after tax was RMB 430 million (A$89.7 million), down 8.0% from RMB 467 million (A$97.5million) in the previous year, reflecting lower productivity of recently acquired orchards and financing costs associated with the company’s acquisition strategy, including the acquisition of Bio Health Pharmaceuticals Pty Ltd. Commenting on the result, Executive Chairman Hongwei Cai said that the company achieved a seventh consecutive record harvest, reflecting the acquisition of a 526-hectare camellia plantation and a 354hectare navel orange plantation in 2018. The company sold 283,734 tonnes of fruit and camellia products, up 7% from 265,496 tonnes in the previous year. Delivery prices for 2018 were in line with 2017 prices. “This was a solid result. Excluding the impact of recent orchard acquisitions, our crop was in line with last year’s for all harvests. We have not yet achieved the full benefit of our new navel orange and camellia orchards and anticipate our cultivation techniques will increase their yield in future harvests, strengthening margins. “Our primary strategy remains to aggregate orchards within China’s agricultural sector, and today we operate plantations on 11,641 hectares of land in the Ganzhou Special Citrus Zone which is acknowledged for producing high-quality citrus products.”
