Anhui Annada Titanium Industry Co Ltd

Company profile

The company is based at Tongling City, Anhui Province, which is near to China's main manufacturing zone for sulphuric acid, an important material for making titanium white. Established in 1994 with the name Tongling Annada Titanium White Co Ltd, the company became a joint-stocks company in March 2005 under the name Anhui Annada Titanium Industry Co Ltd. It is now the largest titanium white manufacturer in Anhui Province.

Investment tips

The company put 20 million A shares on sale at a price of8.08 yuan and raised 140 million yuan in its initial public offering. The fund is to invest in upgrading for the manufacturing capacity of 30,000 tons of titanium dioxide anatage every year. After expansion, the company will be capable of manufacturing 40,000 tons of rutile titanium dioxide yearly.

It is estimated that China's demand for titanium white will increase more than 10 percent in the coming five years.

Risk reminder

The company mainly uses sulphuric acid for manufacturing titanium white, which generates large amounts of unusable byproducts, which are polluting and difficult to control. The company is among 11 listed by the State Environmental Protection Administration for posing environment and safety dangers.

In recent years about 10 percent of the company's products has been exported overseas. It plans to increase exports into 25 percent of output. Exchange rates will greatly affect profits.

Financial data

Estimated revenue and net profit in 2007 is 334.19 million yuan and 30.83 million yuan.

Earnings per share from 2006-2009 are expected to be 0.32 yuan, 0.39 yuan and 0.62 yuan.

Immediately after Annada's shares went on sale on May 30, the price rose to 22.52 yuan.

(China Daily 06/02/2007 page4)