World Precision Machinery

Attended the agm for this company this afternoon. Less than 10 local shareholders there. But the company is doing well and paying 1.25 cents dividend this year. According to one of the independent directors, this is a good S chip with consistent profits and dividend for the past few years but the market does not seem to notice it. Further more, the small free float (19%) of around 38 million shares make it even more attractive.

Read today's write up on the AGM.

1Q2014 order book = 102 m rmb, an increase from 95 m rmb in Feb 2014. Will the uptrend continue?

The 52-week peak was 150 m rmb in April 2013, ie a year ago.

Now, World Precision is trading at about 7X earnings. Looks fairly valued, unless the orderbook rises sharply.

The uptrend of orders will depend on the Chinese economy and I dont think it will be that bad.

The Group’s order book as at 7 August stood at RMB99.5 million.

this looks small compared to the 1H2013 revenue and 1H2014 revenue in excess of 440 RMB Million.

Could it be that they have short-term orders which come and are fulfilled quickly?

What about the latest disclosure on 26 Sep 14 where the substantial shareholder is increasing its shareholding by 26m to 73.85%? Any view on this move?