Bright World: impressive Q3 (by OCBC)Bright World: Stellar 3Q06 results Summary: Bright World Precision Machinery (BWPM) posted an impressive set of 3Q06 results, as earnings surged 77.2% YoY to RMB40.1m on the back of a 56.4% jump in revenue to RMB129.5m, even after accounting for a tax expense of RMB5.7m (versus none a year ago). On a sequential basis, revenue rose 13.2%, while earnings jumped 65.9%, as BWPM's measures to contain its costs appear to be working, with operating expenses down 28.6% to RMB8.9m. It is also worth noting that its 3Q earnings have just managed to exceed its 1H06 earnings. Revenue for the 9-mth period came in at RMB322.3m, or about 72.1% of our FY06 forecast, while earnings of RMB80.2m is just about 66%. We are not too worried as BWPM's 2H performance was traditionally stronger than 1H on a 60:40 basis. Going forward, BWPM remains positive about the outlook of the manufacturing sector in China, especially the stamping industry, given the stellar growth in the automobile manufacturi (more...)