Zibao Metals Recycling Holdings

TICKER: ZBO     EXCHANGE: AIM

Zibao Metals Recycling Holdings Ltd ('Zibao') is a Hong Kong based trader in non-ferrous metals, principally aluminium and copper, which it sources from a panel of suppliers around the world and sells to a small base of customers in China.

LATEST REPORTS

 
The first acquisition
Published: Feb 19 2015

Zibao is a Hong Kong based trader in non-ferrous metals, principally aluminium and copper, which it sources from a panel of suppliers around the world and sells to a base of customers in China.
This week's acquisition of Zhengbao is a significant step in the creation of a larger force in the Chinese recycling industry as Zhengbao is about one-third the size of Zibao itself.
Zibao has indicated its intent to expand both vertically and horizontally, and this acquisition takes it downstream into processing. It will also add 5 new suppliers as well as 20 more companies to the customer base.
It is too early for us to materially change our fair value numbers, but they do move from 13.9p to 14.1p per share on the back of exchange rate movements.
 
A solid opening
Published: Dec 17 2014

Zibao is a Hong Kong based trader in non-ferrous metals, principally aluminium and copper, which it sources from a panel of suppliers around the world and sells to a small base of customers in China.
They listed their shares on AIM in June this year at 8p each. Recent interim results showed gross revenues maintained in HK$ terms, with gross margins broadly the same and opex down.
Zibao also appears closer to its first acquisition, which would be game-changing given the controllable and tight operational base already built.
With the declaration of an interim dividend Zibao joins a select group of dividend yielding AIM companies. We expect a total for the year of 0.41p per share giving a yield of 3.8%
Given economic uncertainties we conservatively reduce our estimates for the current year. However, weakness of Sterling and surprisingly resilient market ratios mean our target price is only slightly lower at 13.9p per share, versus 10.75p last close.
 
Metals into China
Published: Sep 08 2014

Zibao Metals Recycling Holdings is a Hong Kong based trader in non-ferrous metals, principally aluminium and copper, which it sources from a panel of suppliers around the world and sells to a small base of customers in China.
The maiden full year results just announced were achieved despite weak metals prices, a slowdown in the Chinese economy and a tightening of credit within China.
With aluminium now showing a strong upward trend and copper trading within a narrow range, we expect continuing volume growth to be reflected in the income statement. For the current year we expect pre-tax profits to rise by 12% to HK$17.8m
We initiate coverage with a target price of 14.4p per share representing 12x current year PER, which compares with the current price of 10.5p 

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