Summarized some key findings here:
(1) Full year revenue increased 6.7%.
(2) Gross margin maintained at 30.5% compared with 31.8% in 2009.
(3) Maintained its net profit margin at 21.1% in 2010, similar to that of 22.6% in 2009.
(4) Net cash inflows from operating activities of RMB757.3 million as compared to RMB317.8 million last year.
(5) Full year earning per share abt 5.47 cents – base on current stock price 26 cents work out P/E ratio 4.75.
(6) NAV increased 28% to 22.74 cents.
(7) Cash or cash equivalent increased 77% to 14 cents per share.
(8) Quick ratio: 3.25, Debit / Asset ratio: 0.23.
Entry price 34.05 cents - projected P/E ratio 6.22 (base on 2010 EPS 5.47 cents).
If we estimate its EPS just maintained at 5.47 cents per share in 2011 and a reasonable P/E ratio of 8 (current industrial average was 12) the fair value of the stock price should be 43.76 cents.
Anyway in stock market there are no such thing called "reasonable" and I should not expect market to behave in a rational way.
Anyway in stock market there are no such thing called "reasonable" and I should not expect market to behave in a rational way.
Hey what do you think, gao xian has been dropping and i bought it when it was 30 cents, do you think can still hold?
ReplyDeleteHey, I am still holding this counter and my entry was 34 cents. Today drops to 24 cents. Unless there are any account fraud warning signs(like China Hongxing case) then I will sell it.
ReplyDelete