Hi ethan999,
I fear Singapore stock market has closed its eyes on S-chips.
And it is likely to last for 1-2 years.
I don't understand SGX intention to appoint an ang mo as a CEO when the entire world is running to China. Even Hong Kong appointed a mainland China CEO.
If SGX appointed a mainland Chinese CEO, I believe this CEO will have the network to pull some good Chinese IPOs to Singapore.
What can this CEO bring to Singapore? His first gamble has already failed.... I wait to see what is up his sleeves..
aAgree with MacGyer that local investors have shut their eyes on S-Chips as they have been repeatedly toasted. As such, also agree with ethan999 that Eratat should dual list in HK to get a better valuation , as in the case of it's competitor Lilang. I think Eratat is different to other S-Chips. Study their SGX announcements /financial reports and you will find that they are transparent and often achieve what they predict. Basing on 1Q margins and orders on hand , EPS should be about 7 cts. What if they achieve their plans and become another Lilang in few years time? Hence this is good long term bet though nothing is certain. Alternatively, bet on its warrants as the most you lose is 2.5 cts.
I agree in many ways Eratat is different and good -- very transparent and communicative, have paid dividends, etc.
There is 1 thing they must work hard on in order to really win over the market -- they must start collecting their receivables from their distributors, instead of giving them so much credit days. If the receivables can come down significantly, the cash will be avail for dividends. How Eratat? Can do or not?
Hi garl - Re latest SIAS report from Eratat website, 2Q sales expected to be 30% higher than Q1. Add the balance orders on hand to Q1 sales, the YE2011 sales will be min. Rmb1.1 billion. Download their 2010 AR from SGX website and note the steady sales trend since its 2008 listing.
as i posted previously, Eratat does have an open and pro-active system of communications with the market.
The company has ranked highly in this area:
The Board of Directors is pleased to highlight that Eratat Lifestyle Limited (the “Company”) has
achieved the 3rd highest score for the Governance and Transparency Index (“GTI”) 2011 amongst the PRC companies listed on SGX-ST. The GTI scores were published by The Business Times on
12 July 2011. Our Company’s overall GTI score was ranked at joint 52nd position amongst a total of 657 SGX-ST listed companies being assessed.
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