China Star Food Group Ltd

Below are some figures on the 2Q results released on the 12 Nov '18:

1. revenue S$34.9 mil

2. profit S$4.4 mil

3 earning per share 1.2 cts

4 price earning ratio half year 2.2 X

5. 52 weeks high 13.0 cts

6. 52 weeks low 3.3 cts

7. current price 3.6 cts

8. nta .. 28.2 cts

9. cash S$32.0 mil

10. capitalisation .. S$9.8 mil

11. cash backing per share 10.8 cts

12. number of shares 296909000

Above for info n sharing only. Pls note China Star Food is an s-chip.

Thank you for sharing Joseph. I am also holding on to this deeply undervalued shares. Reminds me of Sinostar PEC a few years ago where cash was also higher than market cap

You are most welcome Walterlim.

My entry into this counter was triggered by:
1. low forward p/e of around 1.1 X
2. it has bottomed at 3.3 cts from a 52 weeks high of 13.0 cts.
3. its cash per share after debt is 9.4 cts. This is almost 3 times its low price of 3.3 cts

my only concern is that the financial results are unaudited. however, i still think it is undervalued taking into considerations there might be discrepancies in the calculation of earnings

Q1Y2019 result is
1. 67% of FY2016
2. 51% of FY2017
3. 88% of FY2018

According to the 2nd quarter Unaudited Financial Statements and Dividend Announcement, the company has borrowing of RMB 20.300 mil and cash and cash equivalent of RMB 160.341. Cash is almost 8X debt.

I am surprise that despite this high cash level, the company still go for a cash call. It doesnt make sense to me.

In view of the above, i decide to exit the counter at a loss. It seems that all the low valuation and high cash level get negated.

In my earlier posting, i had highlighted that this is an s-chip n one has to be careful when putting money into s-chip.