Tuesday 17 June 2014

Asian Bamboo report Q1 2014

Asian Bamboo, Q1, 2014, front page

Asian Bamboo arrived some time ago with their Q1 report and here is the summary from that. The drop due to the report was not very significant which was probably mainly due to the significant drop that happened when the annual report was published. Go here for the summary of Asian Bamboo annual report 2013.

This is where to go for the full report from Asian Bamboo Q1 2014.

Something that I found of interest was this table which explained how they will go further with decreasing their plantation size. It is amazing that they manage to sell this, by the look of it and especially according to them, completely useless plantations so fast. They have already decreased it by over 10% and the vision can be seen in the table below. Today they even arrived stating that they managed to sell additional 12,955 hectare. This is going far too fast. Who are they selling it to?

Asian Bamboo, plantation, size, 2014

In the income statement that seem to be build up by an equal quantity of guessed values and pure lies (especially if one goes back in time and retraces each statement they have arrived with) we can see that they did an excellent job! From revenues of only 4.6 million euro (down by -9% from 2013) and costs of 4.9 million euro they managed to have a profit of 1.2 million euro!
One then wonders where did these millions come from? Ah... of course... their biological assets. They sold off over 10% which should mean what was previously at a value of around 58 million should then end up around 52 million. But surprise, surprise it did not. Instead we claim that our 90% remaining plantation has INCREASED with 12% in value and all of a sudden we have a "profit" of 1.2 million for Q1 2014 with a 26% net profit margin.

Asian Bamboo, Income statement, Q1, 2014

The management of Asian Bamboo continues to keep up their game of imaginary figures. I do not know if I have written about this before but believe that they are trying to squeeze out the German shareholders and that the founder is trying to get over 50% shares in the company again on the cheap alternatively that he is buying out the plantations himself somehow. They never publish who they sell it to (besides form claiming to smaller "farmers" which I do not believe because it would not go so fast) and I do not manage to find some information regarding it online.

In the same announcement, arriving barely before the shareholders meeting (how convenient), besides from these impressively quick sales and decreased plantation size, the CEO and founder also decided to not accept any salary any longer.

These are the things that disturb me and it is also what makes me stay around... in my own company I am doing exactly the same things. When the situation is bad I come up with new strategies and new products. When there is no/little money then I decide to not pay myself a salary etc. So maybe my downfall with Asian Bamboo is that I feel in an odd way sympathy for them because I have myself been going thru the exact same thing during the last couple of years.

Conclusion: I keep my shares and I keep being annoyed with the management as I am with plenty of my companies at the moment. To see the previous analysis of Asian Bamboo 2014.

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