Eratat : Clear Sky Ahead?

Free cash flow for Eratat has doubled to $26m in 2012 from $13m in 2011. With successful collection of outstanding account receivable of RMB142m in 1Q13, it's cash position is likely to hit $100m [i.e. 20cts per share] in tne next qtrly report.

Eratat has become a strong cash generating biz. Shall we start to accumulate at such low pe 2.4 now??

Hey gangho, thank you. The cashflow is there but are you sure of your numbers?

I see that FY12 they had rmb145m operating cashflow + rmb 1.5 m inflow from investing activities. That gives you abt S$30 m cash.

If you look at the ageing of their receivables, in the 1-90 days category, there are 333 m rmb, which is about SGD60 m, assuming they are fully collected.

total 30 + 60 = 90 m sgd. However... Eratat does have to pay deposits for its next batch of orders in 2Q.

There is an outflow of around S$2.3m for financing activities in 2012.

I am assuming 1/3 of those outstanding AR to be collected in 2Q which will offset pre-payment, usually around RMB100m.

I'm estimating 20cts cash/share for 1Q and analysts will upgrade their calls in May 13.

Yes u guys r right. The cash machine will spin .

Looking to accumulate below 12.5 cents. Will Cyprus do the job?

Strong close today. Will it rally next week?