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Singapore “Flyer” of the Week: Zhongxin Fruit and Juice Limited

Zhongxin Fruit and Juice Limited (SGX: 5EG) flew 16.1% over the past four days, closing at $0.036 on Thursday.

The company is engaged in the production and sale of apple juice concentrate. Its apple juice concentrate is used mainly in the production of various food and beverage products.

Zhongxin is also involved in the production animal feed using apple pomace generated from the production process of apple juice concentrate. The animal feed produced is sold to dairy farms as a food supplement for livestock and to animal feed manufacturers as additives.

The company did not announce anything material for the past few weeks. In fact, for the last two months, it traded a mere three times. Even when it traded, it traded under low volume. On Chinese New Year Eve yesterday, just 215,000 shares changed hands.

Zhongxin released its full-year results for Financial Year 2013 (FY 2013) on 29 Aug 2013. It made RMB 140 million in revenue while profits came in at RMB 16 million. In the previous year, it did not book any revenue but still suffered RMB 21 million in losses.

As of 30th June 2013, it had RMB 30 million worth of debt while having only RMB 2.9 million in cash. It did not generate any cash from operations in FY 2013 but it generated RMB 3 million in FY 2012. In FY2013, it also issued RMB 47 million worth of new shares to a major shareholder.

Shares of the company trade at a historical PE ratio of 6.4.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.