CHINA AEROSPACE INTERNATIONAL [ 0031 ]
A company named Sin King Enterprises took over a shell, which had been ravaged
by its previous management, which had been in the electronic manufacturing
business, in 1984. The state-owned entity, China Aerospace Corporation, took over
control and broadened its range of products. CASIL Telecommunications, holding
the group's telecommunications operations was spun off during 1997. Capital after
a January 2000 placement was 2,040 million shares.
Interim loss for the six months to June 30, 1999 was $130 million or 7.3 cents per
share after $38 million loss on disposal of a subsidiary. This compares with profit of
$73 million for 1998. The board did not declare the payment of an interim
dividend for 1999.
Loss for the year to December 31,1998 was $342 million, 21 cents per share,
including a $264 million for doubtful debts written back. This compares with profit
of $202 million for the 1997. This company did not declare any dividend in 1998.
The company has always been dogged by tight liquidity.
This company has been salvaged by CASC, and there is no reason for them to
withdraw their support despite the seemingly perpetual liquidity problems. The
product is not particularly high-tech, and sales are concentrated in China. As a
stock it may not be as cyclical as others because of its dependence on China, but it
is generally a stock held for income rather than growth. The current problems do
not permit a high dividend distribution.