think they would hv to announce the book order when the Q3 result is out. I agree with Ethan too. i am also very keen to know next yr book order. it may be gd to release the book order a bit later and timed it after EU settle all their problems. last nite, it was gd tat dow closed above 12,000. Tonight and the next week will be critical. if dow can continue to hold above 12,000, i think the bear market will hv ended, else the rally still considered a bear rally.
PE only 2 or 3 Xs right? Assuming the next orderbook doesn't plunge, and I don't know of any reason why it should plunge, then the valuation of this stock is pretty attractive.
Basing on 13.5 cts closing price and 1H2011 EPS of 8 cts annualised, the PE ratio is just 1.7. Even if the orderbook and EPS remain the same in 2012 , the PE is still very low. As they only sell in China and that China's GDP is projected to only slow to 8 or 9 % next year, I think Eratat is likely to maintain its EPS.
info.sgx.com/webcoranncatth.nsf/VwAttach...ress.pdf?openelement
The Q3 result and the book order are out. do check and comment. overall, the Q3 result is doing relatively ok. On the right track to 8 EPS. But the book order of RMB 380 million seems below expectation...
Yes, orderbook does look lower but for now, I can't find a figure for the previous corresponding period. What is a positive is that the Premium products are such a huge % of the orderbook: 37% versus 8% y-o-y.
My guess is:
1. Eratat is deliberately keeping its orderbook down, in order to conserve cash and reduce its accounts receivables. If the orderbook keeps growing rapidly, it has to cough up cash to pay downpayment to OEMs which make the apparel. On top of that, the distributors will continue to get long credit days...... the AR will never shrink.
2. It is turning from quantity to quality of profits. The profit margin for Premium should be higher for Eratat than the Classic.
yr guess is my guess as well. guess tmr gt to attend the briefing and shoot some questions. i'll post my comments after i attended the briefing.
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[viviene 03-11-2011]:
Yes, orderbook does look lower but for now, I can't find a figure for the previous corresponding period. What is a positive is that the Premium products are such a huge % of the orderbook: 37% versus 8% y-o-y.
My guess is:
1. Eratat is deliberately keeping its orderbook down, in order to conserve cash and reduce its accounts receivables. If the orderbook keeps growing rapidly, it has to cough up cash to pay downpayment to OEMs which make the apparel. On top of that, the distributors will continue to get long credit days...... the AR will never shrink.
2. It is turning from quantity to quality of profits. The profit margin for Premium should be higher for Eratat than the Classic.
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