Eratat Lifestyle - Forward PE 1.5X

Newbiestock – Eratat had a dividend every yr since its 2008 listing and last yr’s dividend was only 11% of earnings. I am expecting 15 – 20% dividend this yr as they should be able to afford it with their projected nett profit of abt Rmb190 million .
China Lilang has over Rmb1 billion cash hence can pay abt 50% dividend , which may explain why they are trading at PE=12 in HK even at present time. Actually C Lilang’s EPS of 7.5cts annualized is slightly lower than Eratat’s , which is why I think there is merit to dual list in HK to get better valuation.
Understand Eratat’s profit records etc have already satisfied the HK dual listing requirements. Dual listing by introduction may be an option if present valuation does not improve even if they continue to deliver good results

Last few days of the year..... anyone wants to push it up from its dismally low price?

I wonder who bought the 4 lots of Eratat at 20 cents today... Praise the courageous act.

Super Laggard -- so far. At 10.5 cents, this is an incredulous price.

Recovering slowly...time to take position?

U.S. private equity fund TPG Capital and Singapore sovereign fund GIC will invest around USD$115 million in China sportswear maker Li Ning through a convertible bond, giving much needed capital to a company whose stock fell more than 60 percent last year.

"It's positive news for now that TPG and GIC are investing in Li Ning, though it will depend on whether TPG can help turn the company around," said Alan Chan, a director of financial services firm Taishan Capital.
"The sportswear sector is really competitive in China and Li Ning faces competition from international brands that are favored by some brand-conscious Chinese consumers. Also, Chinese retailers have to tackle various problems including inventory levels, a possible market slowdown and rising costs," Chan said.

Some comparisons I have made:

1. Li Ning has market cap of about S$1.3 billion on the HK bourse. Eratat’s market cap is only S$50 million on SGX.

2. Li Ning is in the sportswear whereas  Eratat Lifestyle has forsaken the industry to switch to casual lifestyle (which is supposed to be less competitive).

3. Dividend yields are about the same at around 5%, which is actually decent.

4. Price/Book is 0.4 only for Eratat – which is helluva attractive – and 1.7 for Li Ning.