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negotiations in china

  1. 230 Posts.
    from Hardman & Co-have a read here:

    EPY will start its Chinese operations in one of
    the provinces, which we assume will be 1.5
    times the size of Malaysia in terms of
    population, though the market is likely to be
    less mature. We assume that if negotiations
    can be concluded in the next couple of months,
    operations could begin in the early months of
    Q2 2008.
    By the end of the year we would expect EPY’s
    Chinese operations to be achieving a run rate
    around AUD 14m a month in transaction
    value, and AUD 280k a month in revenue.
    With expected growth rates high as initial
    market penetration is achieved, we would
    expect to see the run rate increase to AUD 32m
    in transaction value a month by the end of FY
    2009. That would indicate annual revenues in
    the region of AUD 5.4m, increasing total
    company revenues by 35%. However, the
    impact on earnings will be less, since the
    minority percentage is higher than in Malaysia.

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