Analysts like Terence Wong of DMG Research reckon that the stock's net tangible asset (NTA) backing is about 70 cents, versus its current market price of about 46 cents.
"We like this story," he told BT. "If we annualise its expected quarterly profit, we are looking at earnings per share of some 20 cents this year, which translates into a price-earnings multiple of just over two times."
The Board of Directors (the “Board”) of Sunvic Chemical Holdings Limited (the “Company”)
wishes to announce that it expects to report a significantly higher profit after tax for the
Financial Year Ended 31 December 2013 compared to previous year.
The outstanding performance is mainly due to higher turnover, improved production efficiency
and stronger average prices for our products.
The Company will provide more details about its full year results when it issues its unaudited
full year financial results in end February 2014.
In May 2013 post, I annualised Sunvic's earnings and arrived at 320 million yuan. The actual result : 370 million yuan. I supposed this was very strong 2H2013 performance will carry into 2014. Now that the Frenchie MNC is going to buy a factory from Sunvic, the profit from the deal is adding to the attractiveness of Sunvic. Now still only 5X PE at 63 cents.