Eratat has reported an EPS of 9.68 cts(RMB) for 3Q10 {Oct-Dec 2010] bringing the EPS to 26.84 cts(RMB) for 9 months. Annualised EPS is 35.7 cts(RMB) or 7 cts(S). PE is 3x at 21 cts. A dividend of 3 cts(RMB) has been declared.
I understand the aborted 63 million-share placement issue to CMIA & Khoo Boo Kok is unlikely to adversely affect Eratat’s financial position other than slowing down the pace of its business expansion. As it would be an advantage for Eratat to have CMIA as a major investor & strategic partner, a further attempt of a share placement issue to CMIA cannot be ruled out.
While a share placement issue would help to raise needed funds to speed up Eratat’s expansion plans, it certainly would cause earnings dilution and is less beneficial to the company and the shareholders at this point of time when its share price is very low and undervalued.
Below is a CNBC video clip that should be of interest to all Eratat followers -
classic.cnbc.com/id/15840232?video=1742919883&play=1
- Comeback for S-chips? [Eratat was singled out as a promising S-chips]
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