QR DeCode
18 April 2017
QR DeCode Tiande Chemical – Global leader in the fine chemical industry Tiande Chemical (“Tiande”) is a global leading cyanoacetate producer in the fine chemical industry, in which its key product ECYA (nonreplaceable intermediate for making instant adhesives) retains over 45% of global market share. Taking advantages of vertical integration and high entry barrier, Tiande has been steadily improving its GPM to the recent 31.6% in the past decade and achieved a CAGR of about 26% in net profit during the period. Looking forward, Tiande is looking to expand into downstream cyanide derivative products through possible M&A. New product series to drive revenue – With a comprehensive product portfolio of cyanide and derivative products (accounting for about 94% of its revenue in FY16), Tiande is aiming for downward integration and extending its coverage to downstream cyanide derivatives. The cooperation with Henkel allows Tiande to further extend its product range to cyanoacrylate, namely instant adhesives. In addition to the current products series, it expanded its product mix to chelating agent EDTA in 2016. We expect more new products will be introduced in 2H17, which would become the new revenue drivers in the coming years. High entry barrier for strong pricing power – The company commands strong pricing power owing to extremely stringent safety and environmental requirements in processing the raw material cyanide. As a result, Tiande became one of the only two sizable producers for cyanoacetate in the world. It maintains long-term relationships with its clients given high switching costs without an available substitute for cyanoacetate in making instant adhesives. Effective cost control with uprising margins – Tiande has adopted a vertical integration strategy covering the self-production of upstream basic chemicals and power generation, where it efficiently manages its production costs and optimizes operating efficiency. The company has sustainably improved its net margin in the past 10 years to the recent 17% and generated a strong OCF of an estimate of RMB245mn in FY16. Trading at 6.9x PE with 6% dividend yield – Tiande had a sound financial position with net cash of RMB127.5mn as at 31st Dec 16. The company has maintained stable dividend payout at about 20% since listing in 2006 and doubled to over 42% in the past 2 years. Tiande is currently trading at an undemanding 6.9x historical PE, and it is expected to sustain its high growth and dividend payout in the coming years. Risk factor – Delay in release of new product series
Share Information Stock Code Quam’s Rating Last Closing (HK$) 52-week range (HK$) 3-mth ADT (HK$’mn) Market Cap. (HK$’mn) Shares outstanding (‘mn) Free float SH-HK Stock Connect SH-HK Stock Connect
609 HK Not Rated 2.01 1.32 – 2.14 0.91 1,731 848.7 23.3% No No
Substantial Shareholders Cheerhill Group Feng Gao
68.8% 7.9%
Share Price Performance
Source: Bloomberg
RMB’mn Revenue EBITDA Net profit
Key Financials – FY DEC FY14 FY15 1,121 1,123 281 312 155 172
EPS (HKD) Growth DPS (HKD ) BVPS (HKD)
0.182 na 0.036 1.245
6.9 PER (x) 1.0 PBR (x) 3.7 EV/EBITDA (x) 2.9 Dividend Yield (%) Source: Company data
FY16 1,265 401 220
0.204 0.121 0.084 1.391
0.259 0.270 0.155 1.553
5.1 0.7 2.5 8.1
6.8 1.1 3.4 8.8
Li Yiming, Eric : +852 2971 5433 : [email protected]
For important disclosures regarding Quam Research, including with respect to any issuers mentioned herein, please refer to the disclaimers at the back of the report.
Comprehensive product portfolio with broad application Tiande has a comprehensive product porfolio, covering upstream basic chemicals to downstream cyanide derivative products, and it well controls production costs and optimizes operating efficiency. With the high entry barrier of the industry and stringent regulation, it retains its pricing power and long-term customer relationships with leading market share of its key products globally. Its three major product series, cyanoacetate (core intermediate for instant adhesives), malonate (drugs and flavours intermediate) and EDTA (industrial cleaning agents), have widespread pharmaceutical and industrial applications. Looking ahead, it is aiming at downward integrating more cyanoacetate and malonate downstream products into its porfolio and another new product series is expected to enter the market in 2H17. Figure 1. Tiande’s product portfolio
Source: Company data
Stable profitability and strong operating cash flow With solid pricing power and inelastic market demands, Tiande continuously scaled up its size and improved the GPM in the past decade to about 31% in FY16. The company delivered a substantial growth for its net profit to RMB220mn in FY16 with CAGR of 26% in the past 10 years. It also materialized a strong operating cash flow with CAGR of about 25% during the period and generated an estimated OCF of about RMB245mn in FY16. With the profit contribution from new products starting in FY17, the company could sustain its double-digit growth in the coming years. Figure 2. Tiande’s financial performance in FY11-16 RMB'mn
300
25.4%
250 200 150
12.0%
13.7%
16.2%
129
26.1% 22.6%
188
132
210 22
26
25
147
42
25.3%
159
100 50
28.7%
71
37
85
2008
2009
2010 2011 Net Profit (LHS)
155
169
152
28.2%
31.3%
35%
220
30% 25%
172
20% 200
245
15% 10% 5%
0
0% 2007
2012 CFO (LHS)
Source: Bloomberg, Company data
Tiande Chemical (609 HK)
2
2013 2014 GPM (RHS)
2015
2016
Solid financial position with minimal debt Tiande registered a sound financial position with total debt to equity of only 4.3% in FY16. It held a net cash position of RMB127.5mn as at 31st Dec 16, resulting from RMB184mn cash on hand and RMB56.8mn debt, which is equivalent to about RMB0.15/share. Given the Capex budget of about RMB200mn in FY17&18, it is expected that the company can fulfill its expansion planfrom internal resources.
Attractive valuation with considerable dividend payment The company had been paying out about 20% of its net profit since listing in 2006, and doubled to about 44% in FY15. It maintained its decent payout at 42% in FY16, equivalent to about 6% yield on the current price. As a market leader in the fine chemical industry with high dividend yield, we consider Tiande’s valuation attractive at a historical PE of 6.9x as compared with its peer companies. Figure 3. Peer Comparison Table Market
Com pany Nam e
TIANDE CHEMICAL
P/E
Div
Trailing 12 m onths
EV/
EPS
Last Price
Cap
Hist
Current
Next
P/B
Yield
T/O
Profit
EBITDA
GPM
NPM
Grow th
ROE
(HK$)
(HK$'bn)
(x)
(x)
(x)
(x)
(%)
('m n)
('m n)
(x)
(%)
(%)
(%)
(%)
(%)
Currency
na
na
1.1
9.3
1,265
220
2.6
31.3
17.4
27.0
17.4
21.1
CNY
Ticker
ROA
609 HK
2.01
1.71
6.9
INFINITY DEVELOP
640 HK
0.88
0.56
15.0
-
-
1.3
2.4
496
37
12.4
35.4
7.5
(26.3)
8.6
6.7
HKD
TSAKER CHEMICAL
1986 HK
5.03
2.52
18.5
14.4
9.1
2.4
1.4
1,041
121
9.3
30.8
11.6
4.3
17.3
14.1
CNY
CHINA SANJIANG F
2198 HK
2.54
2.52
4.0
4.1
3.3
1.0
0.0
6,647
553
8.3
3.3
8.3
-
(0.9)
1.5
CNY
ECOGREEN INTERNA
2341 HK
1.74
1.17
11.7
5.2
4.5
0.7
2.2
1,537
86
1.5
23.2
8.9
70.1
5.2
8.0
CNY
12.3
7.9
5.6
1.3
1.5
23.2
9.1
16.1
Peer Group
Simple Average
Source: Bloomberg
Tiande Chemical (609 HK)
3
Appendix: Financial Statements & Ratios Income Statement (RMB'mn)
2014
2015
2016
Balance Sheet (RMB'mn)
Revenue
1,121
1,123
1,265
Non-current assets
Cost of goods sold
(837)
(807)
(869)
284
317
396
12
5
17
Selling and distribution expenses
(35)
(35)
(44)
Administration expenses
(45)
(45)
(50)
0
0
0
215
242
319
Finance costs
(1)
(1)
(1)
Other gains/ (expenses)
(2)
7
7
Profit before tax
213
247
325
Income tax expense
(58)
(75)
(105)
Profit after tax
155
172
219
Total assets
Attributable profit to shareholders
155
172
220
Current liabilities
na
na
(0)
Account payables
2014
2015
2016
2.9
2.7
4.3
Net debt to equity (%)
(3.1)
(7.3)
(9.7)
SG&A to revenue (%)
7.2
7.1
7.4
Current ratio (x)
3.67
3.74
3.03
Quick ratio (x)
2.66
2.88
2.27
343.20
227.28
263.38
Days inventory (days)
37
42
48
Days receivable (days)
101
119
119
9
9
13
129
152
155
2014
2015
2016
Revenue
(6.2)
0.2
12.6
Total equity
EBITDA
(13.9)
11.2
28.4
Net Cash / (Debt)
Net profit
(17.9)
11.6
27.4
Cash Flow Statement (RMB'mn)
Diluted EPS
(18.0)
12.1
27.0
Operating cash in/(out) flow
Gross profit margin
25.3
28.2
31.3
EBITDA margin
25.1
27.8
31.7
Net change in cash
(2)
70
na
Net profit margin
13.8
15.3
17.4
Per Share (RMB)
2014
2015
2016
EPS
0.182
0.204
0.259
Return on average assets
13.2
13.2
14.6
Diluted EPS
0.182
0.204
0.259
Return on average equity
15.6
15.4
17.6
DPS
0.036
0.084
0.155
Dividend payout ratio
19.8
41.3
59.9
BVPS
1.245
1.391
1.553
Gross profit Other income and gains, net
Other operating expenses Operating profit
Minority interest Key Ratios Debt to equity (%)
Interest coverage (x)
Days payable (days) Cash conversion cycle (days) Ratio Analysis
PPE Intangible assets
604
652
730
0
0
na
29
31
Others
46
38
na
678
719
800
Current assets Inventories
89
96
131
338
395
432
Others
63
55
73
Bank balances and cash
63
118
184
553
664
820
1,231
1,383
1,621
16
23
39
31
32
57
Others
104
122
175
Total current liabilities
151
178
271
0
0
0
26
27
32
Account receivables
Total current assets
ST borrowings
Non-current liabilities LT borrowings Other non-current liabilities Total non-current liabilities Total liabilities
26
27
32
177
205
303
114
114
8
Shareholders’ equity Share capital Reserves
940
1,064
1,310
1,054
1,178
1,318
0
0
(0)
1,054
1,178
1,318
32
86
128
2014
2015
2016
152
200
na
Investing cash in/(out) flow
(121)
(80)
na
Financing cash in/(out) flow
(33)
(50)
na
Total shareholders’ equity
Source: Bloomberg
Tiande Chemical (609 HK)
2016
29
Minority interest
Other ratios
2015
LT investments & receivables
Total non-current assets
Growth (YoY%)
Margins
2014
4
Disclaimer and Risk Statement This document is published by Quam Securities Company Limited ("Quam Securities"), a licensed corporation (CE number AAC577) regulated by the Securities and Futures Commission in Hong Kong. Quam Securities is an affiliate of Quam Limited (0952.hk) and its group of companies (collectively "Quam Group"). This document is not intended for distribution to or use by, any person or entity who is a citizen or resident of any jurisdiction where such distribution or use would be contrary to applicable law or regulation within such jurisdiction. In particular but without limitation, neither this document nor any copy hereof may be taken or transmitted into Japan, Canada or the United States or distributed, directly or indirectly, into the United States or to any U.S person (within the meaning of Regulation S under the U.S. Securities Act of 1933) or general public located in Mainland China (but not including people in Hong Kong, Macau and Taiwan). This document is circulated to addresses solely and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. This document does not constitute an offer or a solicitation of an offer to buy or sell any securities. Any recommendation does not have regard to specific investment objectives, financial situation and particular needs of any specific addressee. Quam Securities accepts no liability whatsoever for any direct or consequential loss arising from any use of this document. The opinions and/or recommendations of this document do not take into account the recipients' own investment objectives, investment experience, financial situation and other personal circumstances. The recipients of this document shall be solely responsible for making their own independent investigation of the business, financial condition and prospects of companies referred to in this document. The research is based on information obtained from sources believed to be reliable, but Quam Securities does not make any representation or warranty as to its accuracy, completeness or correctness. This document is for informational purpose only and should not be treated as a recommendation on any particular securities, financial instrument, investment portfolio or trading strategy. Opinions and/or recommendations expressed in this document are subject to change without prior notice to all recipients. The prices of securities may move up or down, and past performance is not an indication of future performance. Investors shall consider seeking separate legal or financial advice before making investment decisions. The following analyst hereby certify that their views about the issuer and its securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Li Yiming (CE No. BIE646) and his associates declare that as of the date of the publication of this report, they do not hold any financial interest in the company.
Tiande Chemical (609 HK)
5
QR DeCode Tiande Chemical – Global leader in the fine chemical industry Tiande Chemical (“Tiande”) is a global leading cyanoacetate producer in the fine chemical industry, in which its key product ECYA (nonreplaceable intermediate for making instant adhesives) retains over 45% of global market share. Taking advantages of vertical integration and high entry barrier, Tiande has been steadily improving its GPM to the recent 31.6% in the past decade and achieved a CAGR of about 26% in net profit during the period. Looking forward, Tiande is looking to expand into downstream cyanide derivative products through possible M&A. New product series to drive revenue – With a comprehensive product portfolio of cyanide and derivative products (accounting for about 94% of its revenue in FY16), Tiande is aiming for downward integration and extending its coverage to downstream cyanide derivatives. The cooperation with Henkel allows Tiande to further extend its product range to cyanoacrylate, namely instant adhesives. In addition to the current products series, it expanded its product mix to chelating agent EDTA in 2016. We expect more new products will be introduced in 2H17, which would become the new revenue drivers in the coming years. High entry barrier for strong pricing power – The company commands strong pricing power owing to extremely stringent safety and environmental requirements in processing the raw material cyanide. As a result, Tiande became one of the only two sizable producers for cyanoacetate in the world. It maintains long-term relationships with its clients given high switching costs without an available substitute for cyanoacetate in making instant adhesives. Effective cost control with uprising margins – Tiande has adopted a vertical integration strategy covering the self-production of upstream basic chemicals and power generation, where it efficiently manages its production costs and optimizes operating efficiency. The company has sustainably improved its net margin in the past 10 years to the recent 17% and generated a strong OCF of an estimate of RMB245mn in FY16. Trading at 6.9x PE with 6% dividend yield – Tiande had a sound financial position with net cash of RMB127.5mn as at 31st Dec 16. The company has maintained stable dividend payout at about 20% since listing in 2006 and doubled to over 42% in the past 2 years. Tiande is currently trading at an undemanding 6.9x historical PE, and it is expected to sustain its high growth and dividend payout in the coming years. Risk factor – Delay in release of new product series
Share Information Stock Code Quam’s Rating Last Closing (HK$) 52-week range (HK$) 3-mth ADT (HK$’mn) Market Cap. (HK$’mn) Shares outstanding (‘mn) Free float SH-HK Stock Connect SH-HK Stock Connect
609 HK Not Rated 2.01 1.32 – 2.14 0.91 1,731 848.7 23.3% No No
Substantial Shareholders Cheerhill Group Feng Gao
68.8% 7.9%
Share Price Performance
Source: Bloomberg
RMB’mn Revenue EBITDA Net profit
Key Financials – FY DEC FY14 FY15 1,121 1,123 281 312 155 172
EPS (HKD) Growth DPS (HKD ) BVPS (HKD)
0.182 na 0.036 1.245
6.9 PER (x) 1.0 PBR (x) 3.7 EV/EBITDA (x) 2.9 Dividend Yield (%) Source: Company data
FY16 1,265 401 220
0.204 0.121 0.084 1.391
0.259 0.270 0.155 1.553
5.1 0.7 2.5 8.1
6.8 1.1 3.4 8.8
Li Yiming, Eric : +852 2971 5433 : [email protected]
For important disclosures regarding Quam Research, including with respect to any issuers mentioned herein, please refer to the disclaimers at the back of the report.
Comprehensive product portfolio with broad application Tiande has a comprehensive product porfolio, covering upstream basic chemicals to downstream cyanide derivative products, and it well controls production costs and optimizes operating efficiency. With the high entry barrier of the industry and stringent regulation, it retains its pricing power and long-term customer relationships with leading market share of its key products globally. Its three major product series, cyanoacetate (core intermediate for instant adhesives), malonate (drugs and flavours intermediate) and EDTA (industrial cleaning agents), have widespread pharmaceutical and industrial applications. Looking ahead, it is aiming at downward integrating more cyanoacetate and malonate downstream products into its porfolio and another new product series is expected to enter the market in 2H17. Figure 1. Tiande’s product portfolio
Source: Company data
Stable profitability and strong operating cash flow With solid pricing power and inelastic market demands, Tiande continuously scaled up its size and improved the GPM in the past decade to about 31% in FY16. The company delivered a substantial growth for its net profit to RMB220mn in FY16 with CAGR of 26% in the past 10 years. It also materialized a strong operating cash flow with CAGR of about 25% during the period and generated an estimated OCF of about RMB245mn in FY16. With the profit contribution from new products starting in FY17, the company could sustain its double-digit growth in the coming years. Figure 2. Tiande’s financial performance in FY11-16 RMB'mn
300
25.4%
250 200 150
12.0%
13.7%
16.2%
129
26.1% 22.6%
188
132
210 22
26
25
147
42
25.3%
159
100 50
28.7%
71
37
85
2008
2009
2010 2011 Net Profit (LHS)
155
169
152
28.2%
31.3%
35%
220
30% 25%
172
20% 200
245
15% 10% 5%
0
0% 2007
2012 CFO (LHS)
Source: Bloomberg, Company data
Tiande Chemical (609 HK)
2
2013 2014 GPM (RHS)
2015
2016
Solid financial position with minimal debt Tiande registered a sound financial position with total debt to equity of only 4.3% in FY16. It held a net cash position of RMB127.5mn as at 31st Dec 16, resulting from RMB184mn cash on hand and RMB56.8mn debt, which is equivalent to about RMB0.15/share. Given the Capex budget of about RMB200mn in FY17&18, it is expected that the company can fulfill its expansion planfrom internal resources.
Attractive valuation with considerable dividend payment The company had been paying out about 20% of its net profit since listing in 2006, and doubled to about 44% in FY15. It maintained its decent payout at 42% in FY16, equivalent to about 6% yield on the current price. As a market leader in the fine chemical industry with high dividend yield, we consider Tiande’s valuation attractive at a historical PE of 6.9x as compared with its peer companies. Figure 3. Peer Comparison Table Market
Com pany Nam e
TIANDE CHEMICAL
P/E
Div
Trailing 12 m onths
EV/
EPS
Last Price
Cap
Hist
Current
Next
P/B
Yield
T/O
Profit
EBITDA
GPM
NPM
Grow th
ROE
(HK$)
(HK$'bn)
(x)
(x)
(x)
(x)
(%)
('m n)
('m n)
(x)
(%)
(%)
(%)
(%)
(%)
Currency
na
na
1.1
9.3
1,265
220
2.6
31.3
17.4
27.0
17.4
21.1
CNY
Ticker
ROA
609 HK
2.01
1.71
6.9
INFINITY DEVELOP
640 HK
0.88
0.56
15.0
-
-
1.3
2.4
496
37
12.4
35.4
7.5
(26.3)
8.6
6.7
HKD
TSAKER CHEMICAL
1986 HK
5.03
2.52
18.5
14.4
9.1
2.4
1.4
1,041
121
9.3
30.8
11.6
4.3
17.3
14.1
CNY
CHINA SANJIANG F
2198 HK
2.54
2.52
4.0
4.1
3.3
1.0
0.0
6,647
553
8.3
3.3
8.3
-
(0.9)
1.5
CNY
ECOGREEN INTERNA
2341 HK
1.74
1.17
11.7
5.2
4.5
0.7
2.2
1,537
86
1.5
23.2
8.9
70.1
5.2
8.0
CNY
12.3
7.9
5.6
1.3
1.5
23.2
9.1
16.1
Peer Group
Simple Average
Source: Bloomberg
Tiande Chemical (609 HK)
3
Appendix: Financial Statements & Ratios Income Statement (RMB'mn)
2014
2015
2016
Balance Sheet (RMB'mn)
Revenue
1,121
1,123
1,265
Non-current assets
Cost of goods sold
(837)
(807)
(869)
284
317
396
12
5
17
Selling and distribution expenses
(35)
(35)
(44)
Administration expenses
(45)
(45)
(50)
0
0
0
215
242
319
Finance costs
(1)
(1)
(1)
Other gains/ (expenses)
(2)
7
7
Profit before tax
213
247
325
Income tax expense
(58)
(75)
(105)
Profit after tax
155
172
219
Total assets
Attributable profit to shareholders
155
172
220
Current liabilities
na
na
(0)
Account payables
2014
2015
2016
2.9
2.7
4.3
Net debt to equity (%)
(3.1)
(7.3)
(9.7)
SG&A to revenue (%)
7.2
7.1
7.4
Current ratio (x)
3.67
3.74
3.03
Quick ratio (x)
2.66
2.88
2.27
343.20
227.28
263.38
Days inventory (days)
37
42
48
Days receivable (days)
101
119
119
9
9
13
129
152
155
2014
2015
2016
Revenue
(6.2)
0.2
12.6
Total equity
EBITDA
(13.9)
11.2
28.4
Net Cash / (Debt)
Net profit
(17.9)
11.6
27.4
Cash Flow Statement (RMB'mn)
Diluted EPS
(18.0)
12.1
27.0
Operating cash in/(out) flow
Gross profit margin
25.3
28.2
31.3
EBITDA margin
25.1
27.8
31.7
Net change in cash
(2)
70
na
Net profit margin
13.8
15.3
17.4
Per Share (RMB)
2014
2015
2016
EPS
0.182
0.204
0.259
Return on average assets
13.2
13.2
14.6
Diluted EPS
0.182
0.204
0.259
Return on average equity
15.6
15.4
17.6
DPS
0.036
0.084
0.155
Dividend payout ratio
19.8
41.3
59.9
BVPS
1.245
1.391
1.553
Gross profit Other income and gains, net
Other operating expenses Operating profit
Minority interest Key Ratios Debt to equity (%)
Interest coverage (x)
Days payable (days) Cash conversion cycle (days) Ratio Analysis
PPE Intangible assets
604
652
730
0
0
na
29
31
Others
46
38
na
678
719
800
Current assets Inventories
89
96
131
338
395
432
Others
63
55
73
Bank balances and cash
63
118
184
553
664
820
1,231
1,383
1,621
16
23
39
31
32
57
Others
104
122
175
Total current liabilities
151
178
271
0
0
0
26
27
32
Account receivables
Total current assets
ST borrowings
Non-current liabilities LT borrowings Other non-current liabilities Total non-current liabilities Total liabilities
26
27
32
177
205
303
114
114
8
Shareholders’ equity Share capital Reserves
940
1,064
1,310
1,054
1,178
1,318
0
0
(0)
1,054
1,178
1,318
32
86
128
2014
2015
2016
152
200
na
Investing cash in/(out) flow
(121)
(80)
na
Financing cash in/(out) flow
(33)
(50)
na
Total shareholders’ equity
Source: Bloomberg
Tiande Chemical (609 HK)
2016
29
Minority interest
Other ratios
2015
LT investments & receivables
Total non-current assets
Growth (YoY%)
Margins
2014
4
Disclaimer and Risk Statement This document is published by Quam Securities Company Limited ("Quam Securities"), a licensed corporation (CE number AAC577) regulated by the Securities and Futures Commission in Hong Kong. Quam Securities is an affiliate of Quam Limited (0952.hk) and its group of companies (collectively "Quam Group"). This document is not intended for distribution to or use by, any person or entity who is a citizen or resident of any jurisdiction where such distribution or use would be contrary to applicable law or regulation within such jurisdiction. In particular but without limitation, neither this document nor any copy hereof may be taken or transmitted into Japan, Canada or the United States or distributed, directly or indirectly, into the United States or to any U.S person (within the meaning of Regulation S under the U.S. Securities Act of 1933) or general public located in Mainland China (but not including people in Hong Kong, Macau and Taiwan). This document is circulated to addresses solely and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. This document does not constitute an offer or a solicitation of an offer to buy or sell any securities. Any recommendation does not have regard to specific investment objectives, financial situation and particular needs of any specific addressee. Quam Securities accepts no liability whatsoever for any direct or consequential loss arising from any use of this document. The opinions and/or recommendations of this document do not take into account the recipients' own investment objectives, investment experience, financial situation and other personal circumstances. The recipients of this document shall be solely responsible for making their own independent investigation of the business, financial condition and prospects of companies referred to in this document. The research is based on information obtained from sources believed to be reliable, but Quam Securities does not make any representation or warranty as to its accuracy, completeness or correctness. This document is for informational purpose only and should not be treated as a recommendation on any particular securities, financial instrument, investment portfolio or trading strategy. Opinions and/or recommendations expressed in this document are subject to change without prior notice to all recipients. The prices of securities may move up or down, and past performance is not an indication of future performance. Investors shall consider seeking separate legal or financial advice before making investment decisions. The following analyst hereby certify that their views about the issuer and its securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Li Yiming (CE No. BIE646) and his associates declare that as of the date of the publication of this report, they do not hold any financial interest in the company.
Tiande Chemical (609 HK)
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