Sinotel Technologies

Wonder why the 2-cent jump in Sinotel to 48 cents now. Results good? Low valuation and a good industry are factors that can keep stock moving up after weak holders or disbelievers have sold out in the past few weeks. Ben Ng is a believer, as is the CFO, Fyui Chu, accroding to www.nextinsight.net/content/view/1799/79/

Sinotel PE just only 5 based on latest earning .... That is very low even compared to other s-chips

AmFraser has target price of 89 cents, which is lower than previusly. >>>>> We revise both our revenue growth and profit margin assumptions downwards to reflect the shift in landscape. While improving cashflow, the placements bring with them a higher share base that Management has to overcome in order to show an improvement in EPS. Our earnings model arrive at a lower FV of S$0.89, representing 10.3 times and 8.9 times FY10 and FY11 earnings respectively. While this FV is still above the last close of S$0.505, we believe investors may now do better to ACCUMULATE slowly and/or on dip

Hohoho... Why still got investors believe this stock. Long receivables days, huge working capital. Maybe Company will require one more round of funding pretty soon.

Stock is up 1.5 cents to 51.5 cents now. Regarding long receivable days, what Sinotel could do is to sell its accounts receivable (i.e., invoices) to a third party (at a discount of course) in exchange for immediate money. This is called factoring. Wonder why they have not done it. Or maybe they are considering it. That will straightaway boost investor interest and confidence in the business. Currently at PE of 5, it\'s a pathetic price. Maybe they shld just delist here & go to HK and get a PE of 20X. Imagine the stock being valued at S$2.00. OMG

Very reassuring to know that Sinotel is getting higher in the value chain. Aside from wireless infrastructure installation, now it has been qualified to design. It\'s higher margin business. Singapore, 12 March, 2010 – Sinotel Technologies Ltd., an innovator in the provision of wireless telecommunications infrastructure and solutions in the PRC, is pleased to announce that the Group was qualified as China Mobile’s design vendor for its wireless network infrastructures. In a bid to streamline its wireless infrastructure development, China’s mobile carriers (“Telcos”) are moving towards segregating the process of building its network coverage into three segments; Procurement of equipment, Design and Installation. The Telcos have started central procurement in late 2008 and have just completed the process of qualifying vendors capable of providing design solutions. Being a qualified design vendor, the Group will now be allowed to bid for design contracts across all provinces in China where China Mobile operates. China Mobile will reassess the qualification of all the vendors annually. Said Mr Jia Yue Ting (“贾跃亭”), Executive Chairman of Sinotel, “The Group is thrilled to have been chosen as one of China Mobile’s qualified vendors to provide design solution for its wireless network infrastructure. This is a testament to the Group’s capabilities in becoming the choice of Telcos for the development of infrastructure solutions. Mr Jia explains, “Among the three segments, infrastructure design solutions reap higher margins when compared to equipment sales and installation works. Design solutions require skillful engineering, an attribute which has been synonymous with the Group’s competency.”