Dukang has traded from 0.500 to 0.55 level for about a week and again today we have seen a breakout of 0.55 resistance level. New support now at 0.55 level. Short term target possible at 0.600. A break above 0.600 can see it trade higher to find new consolidation phase. Follow up from previous call made on 22 May 2013. As long as 0.55 hold, upside and momentum remains intact. Can consider averaging up on 0.600 breakout. TOP 30 Volume seen currently.
Stop loss at 0.535
See report from Next insights
Keeping up the momentum
The Dukang brand was recently endorsed by China’s Ministry of Foreign Affairs. More than 200 embassies worldwide will have the option to serve Dukang baijiu at official banquets and use the liquor as official gifts presented to foreign dignitaries. In 4Q2013, it will step up on advertising and promotion (A&P) activities to bring the Dukang brand another leg up. The management expects to increase its A&P activities in the quarters ahead but will ensutr that A&P expense over sales ratio will stay within 12% for the full year.
It will also start production of 700 new fermentation pools in July or August 2013, adding another 3,000 tonnes of grain alcohol production capacity to the existing 7,610 tonnes per year.
The Dukang brand was recently endorsed by China’s Ministry of Foreign Affairs. More than 200 embassies worldwide will have the option to serve Dukang baijiu at official banquets and use the liquor as official gifts presented to foreign dignitaries. In 4Q2013, it will step up on advertising and promotion (A&P) activities to bring the Dukang brand another leg up. The management expects to increase its A&P activities in the quarters ahead but will ensutr that A&P expense over sales ratio will stay within 12% for the full year.
It will also start production of 700 new fermentation pools in July or August 2013, adding another 3,000 tonnes of grain alcohol production capacity to the existing 7,610 tonnes per year.
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