Changtian Plastic

Mel
Topic Author
Offline
Platinum Member

14 years 5 days ago #3737 by Mel

Changtian Plastic was created by Mel

The company has just reported solid Q1 results of rmb 55 m, up 386%. Clearly the business is rebounding. What I am uneasy about is that it has loads of cash but didnt declare dividend for FY09. It has S$96 million versus a market capitalization of about S$160 m ... Wonder why S-chips are like that. Will raise money for expansion but wont pay dividend. Is this the poor\'s mindset? Get as much as you can for fear you will be poor again? I just hope there are really good businesses among them and they can recognise the importance of treating minority shareholders properly , which means paying dividends and doing share buybacks. Changtian has the cash and it shld be doing share buyback as the stock now is dirt cheap.

Please Log in or Create an account to join the conversation.

jinraidx
Offline
Junior Member

14 years 5 days ago #3738 by jinraidx

Replied by jinraidx on topic Re:Changtian Plastic

Hi Dello, I cannot agree further with what you said. If you note, all the cash rich firms are also the S chips. After all, their factories is so far away. They can claim they are the best or leading manufacturers and are not polluting but how can we know. We do not even understand their production or research processes well enough to determine their costing. Alot of times the cash is stashed in separate offshore accounts with records fudged thats why it is not distributable. Most importantly, many Chinese firms release cash only upon producing company stamp which only one person has it. Is it so hard to let multiple directors hold the stamp so that money can be retrieved for shareholders in event the main guy slips off? The arrangement is as if they list the firm in preparation to fleece the shareholders. singaporemind.blogspot.com/2009/04/confe...n-of-s-chip-ceo.html I\'m not saying Changtian is fraudulent. What I am saying is one can analyse till the cows come home but such events cannot be controlled by investors, have little signs and will happen. Companies can avoid giving cash but they must connect with shareholders to let them know their plans like China Sports and Hongxing. So at least shareholders know whether their plan is feasible and take appropriate action. Now is like sitting duck on a fence, fiddling with fire.

Please Log in or Create an account to join the conversation.

Dongdaemun
Offline
Platinum Member

13 years 11 months ago #3795 by Dongdaemun

Replied by Dongdaemun on topic Re:Changtian Plastic

Changtian is trading at current-year PE of only 1.5X if u annualise its RMB55 m earnings in Q1 and deduct the huge cash pile. :cheer:

Please Log in or Create an account to join the conversation.

Time to create page: 0.196 seconds