Monday 18 August 2014

Asian Bamboo report Q2 2014

Asian Bamboo, Q2, 2014, report, front page

The answer of the market was more or less -3% on the Q2 report from Asian Bamboo. Lately I have very frequently been unhappy with the reports and conducted similar activities to them as Mr. Creosote does to buckets. This time was no different.

My last summary of the Asian Bamboo report Q1 2014 can be found on this link and for the full Q2 report please visit their home page by clicking on this link.

There was once again the classical tear bringing cries of bad weather which prevented the harvesting from happening and I wonder... does this mean that they no longer have personal issues then?

If we look at the income statement we see that they continue the charade of on one hand selling off (or decreasing leases better said) of the bamboo plantation and yet at the same time I keep increasing the value of the matured plantations with even more than what they sell off. Amazing! So the gross profit in the circle is a big fat minus in reality. 6.2 million in revenue is a joke especially when they have 792 employees full time not to mention the temporary harvesting people that are not included! 7.8k € per employee during 6 months which would give 16k € per year. A normal forest company have revenues around 300k € per employee and year and with a small company one could accept around 100k € but that is really the lower limit! So either they need to fire 730 employees until there will be around 62 of them left or they need to push up those earnings!

Asian Bamboo, Q2, 2014, income statement

In this report it also became very obvious what I said that I suspected in my last summary of the Q1 report that the founder is trying to squeeze out the German shareholders and to take over the company again. So first off they will go ahead with the convertible bonds (I think they would run for three years with little to non interest rate) and secondly the founder and CEO clearly states that he will take over a larger part of the company. Sure... we shareholder can decide to go against it by buying more of the CBs but he obviously doubt that we will do so.

Asian Bamboo, Q2, 2014, CEO statement

Conclusion: I am still unhappy with the management and their decision to change direction instead of solving the harvesting and personal issues. I will remain as shareholder and I must seriously think over what to do with the coming CBs. Here is the previous analysis of Asian Bamboo 2014.

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