Eratat Lifestyle

Just do a share buyback and all the shareholders will be happy.

If u trace back to 2010, the dividend was RMB 0.0466 lol as opposed to the upcoming RMB 0.025.

at 14.9-15c, share price is too cheap to do any placement, should the company needs cash for expansion. If u recall, the placement done at 2011 was around 20 c. And at the peak, Eratat went to as high as 26 c. The fundamental still remain unchanged as earnings are consistent, except now have higher cash.

By taking advantage of the low interest rates now, i hope they will utilise part of their funds from the bond issue to do some sharebuyback and keep some for expansion.

The most effective way is to go ahead with the bond and then return 15c cash per share back to investors....as simple as that!

Del wrote: I have just learnt of 1 comparable, Evergreen.
www.nextinsight.net/index.php/story-arch...o-serve-china-market

1) The PE is 7.3X while Eratat is 2X.
The valuation of Eratat is clearly too cheap. Will consider loading up on the shares on Monday.


2) The dividend yield of Evergreen is 7.3% while Eratat's is 3.4%.

The way to interpret the 2 points above is: Evergreen pays a lot more in dividends!

Put another way, if Eratat were to be re-rated to 7X PE, the dividend yield would be minimal, kacang puteh!

Eratat should take note that this is a key reason the stock is trading at 15 cents instead of 30 cents. By failing to provide a higher dividend return, the stock is getting punished to some extent.

I checked another peer, China Lilang. This one is a Big Fish, earnings about S$159 million. PE is the same as Evergreen at 7.1X. The dividend yield is also about the same at 6.8%.

China Lilang is an attractive stock among the 3 menswear play on China market for its decent yield. However, Eratat Lifestyle, constrained by its working capital needs, could offer higher capital gain because its PE has a higher chance of re-rating from just 2X.

www.nextinsight.net/index.php/story-arch...-rising-prc-clothier

here's an old article about Lilanz.

Lilanz is at least a SGD 1.5 to SGD 2+ stock when being listed in HK lol and Eratat earnings are quite close to Lilanz. Around 30+ RMB EPS.

If Eratat is listed in HK, i think it would probaby enjoy much better valuation than in SGX.

Hey newbiestock, in that article the market cap of Lilang was 13 b HKD. Today.... i just checked.... it is down to 5.5 b HKD.

PE used to be 25, now just 7X. Obviously the earnings is roughly about the same but the PE valuation has been cut to just a fourth.

Lilang's earnings is > S$100 million --- v much bigger than Eratat's of course.

Eratat is way undervalued!!! Easy can worth 300% from current price!