Bright World had strong turnover performance for 4QFY09, rising 57.1% year-on-year to RMB200.4 million with net profit rising 32.2% to RMB19.0 million for the quarter. I think previously a guy named Level13 was very keen on this stock when he participated in a stock challenge on NextInsight. At that time, therre was a takeover offer for Bright World at 70 cents...Wonder if he is still vested/. Wonder if the suitor is eyeing Bright World again at this cheap level.....:laugh:
Now 23 cents... took a while to go up on bumper 3-cent dividend news. 15 minutes into morning trading and therre are 3 million shares traded. Positive sign of market\'s new-found love?
The chairman & the CEO own 77% of the company, so their interests are very aligned with minority shareholders. If they pay 3-cent dividend, they will enjoy the payout in a very massive way too. If they drive the business to greater profitability, they too will enjoy the reward from a higher stock price.
BRIGHT WORLD could be one of the most undervalued high-growth stocks.
It recorded 248.2% JUMP IN NET PROFIT AFTER TAX TO RMB 60.6 MILLION FOR FIRST HALF OF 2010
• Upward revision in selling prices and strong demand for stamping machines led to significant improvement in turnover by 121.8% to RMB 456.0 million for 1H10.
Problem is, the free float is small, since the chairman owns 78% and he continued to buy after the release of the results.
Simply put, this stock is a candidate for privatisation for relisting in HK.
Just my 2 cents.
Yes, I tend to think this stock is under-appreciated by the market and it can only rocket up if its 3Q profit is a sharp increase year on year .
Already its 1Q and 2Q profits were excellent - yet the market has shied away from the stock because probably it's too illiquid as the chairman owns something like 70 - 80% of the stock.
The CEO bought a chunk as announced last night, which is a tremendously bullish signal so close to the 3Q results.
At 28 cents, the PE is about 4.5X if you take the 1H eps and double it to get some sort of annual estimate. The negative thing abt this stock is the management is low key, and there isnt enough newsflow to enable the market to calibrate its view on the performance.
Just a stone wall tht comes down every quarter to release its results.
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If they drive the business to greater profitability, they too will enjoy the reward from a higher stock price.