Eratat Lifestyle

as cash balance grows and credit terms reduced, this stock gt potential to give out bumpy dividend in the future. provided u can hold long enough for a couple of years.

within a quarter, cash has increased from 15c per share to 23c per share. if this is not a gem, then what is it...

My FA analysis tells me Eratat can easily hit a record profit of RMB 170-190 mil this year, up from the record profit of RMB 140 mil. That is a 20+ to 30% net profit growth, even without new distributors added. This is on the assumption that there is no renovation subsidy / sales incentive for this year, which is very unlikely.

And, if the company does some share buyback, the total EPS growth should easily exceed 30%.

I am talking about full year result for 2013. full year result will hv to wait till next year feb to early mar then out. so be patient, guys.

if EPS grow at 30% and market still don't give its fair valuation, I really dunno wat to say liao...

gangho wrote: This price is unbelievably cheap! PE abt 2 and div yield 3.63% that may double. Don't know where to find such a under-valued stock. Can someone invite Sam Goi to take a small small stake here?

I prefer this stock to stay low for a much longer time. This is a way for poor people to built up their wealth!

Yeah... so poor people like us can collect low low.

gangho wrote: This price is unbelievably cheap! PE abt 2 and div yield 3.63% that may double. Don't know where to find such a under-valued stock. Can someone invite Sam Goi to take a small small stake here?

I agree with the FA of forumers here. I have been thinking about reasons why the valuation is so low. It could be:

1. Free float is very high, and the holders are mainly retail.

2. Retail just quick to take profit and hope to buy back at lower prices.

3. Retail cannot drive up the stock price. It takes boutique funds and insti players.

4. There are high-profile players in the HK and China market for funds seeking exposure to consumer space.

5. Eratat luckily has a dividend payout, so the stock is somewhat referenced to the yield. At 3-4% yield, people who are value investors are prepared to hold while waiting for the greater value to be unlocked thru some Big Catalyst(s).

ya.. not to forget a placement was made in 2011 thus widening the public share base.

if i am not wrong, placement was done at price $0.202. If Eratat does a sharebuyback at current prices, it's a win win situation for them

1) net gain in cash for company since can buy back shares at lower prices

2) sharebuyback improves EPS quality as well as reduce the total amount of dividend they are going to give out (which i believe dividend payout is sometime in July or maybe august). Most imptly, it keeps the shareholders happy and signal confidence boost to the company.

3) the buyback share can be kept as treasury and when shares appreciate in the future, they can use it to reward employees or even reward distributors. In fact, during AGM, one long time shareholders mention that instead of giving distributors sales incentives, Eratat should do sharebuyback and reward their distributors with shares instead. If the distributors hold shares, it will give them incentive to perform even better plus it will not reduce the company profitability compared to sales incentive given. The distributors can also continue to enjoy the company dividend, if rewarded with shares instead. Ken Ho said this is a good suggestion and they will seriously consider it.

judging from the laosai market which i believe should be ending soon, i think this will be a very good time for Eratat to perform a sharebuyback. But first, i think we hv to wait for the bond issue details out.

Viva wrote:

gangho wrote: This price is unbelievably cheap! PE abt 2 and div yield 3.63% that may double. Don't know where to find such a under-valued stock. Can someone invite Sam Goi to take a small small stake here?

I agree with the FA of forumers here. I have been thinking about reasons why the valuation is so low. It could be:

1. Free float is very high, and the holders are mainly retail.

2. Retail just quick to take profit and hope to buy back at lower prices.

3. Retail cannot drive up the stock price. It takes boutique funds and insti players.

4. There are high-profile players in the HK and China market for funds seeking exposure to consumer space.

5. Eratat luckily has a dividend payout, so the stock is somewhat referenced to the yield. At 3-4% yield, people who are value investors are prepared to hold while waiting for the greater value to be unlocked thru some Big Catalyst(s).

Eratat's road show on 10 Jan 13 to recruit new distributors in shanghai. So, it should take abt 6 - 9 months [2H2013] to see result from new disty.



英伦时尚男装鳄莱特招商会再启 渠道盈利模型规模化复制时间:2013-01-16 16:42:27 来源：华北新闻网 浏览次数:9 新闻首页 我来说两句(0)1月10日，生意街商机汇平台上的重点推荐项目——鳄莱特项目招商会，在上海隆重召开。此次招商会由全国最大的招商外包和渠道建设平台——通路快建全力协助。来自全国各地的数十位经销商应邀参会，鳄莱特良好的市场反馈和投资前景，引起了与会经销商纷纷踊跃咨询和签约。



(招商会现场合影)

首先，鳄莱特集团渠道总监蔡总详细地介绍了鳄莱特品牌理念、渊源及公司情况等。据悉，ERATAT品牌在20世纪20年代诞生于伦敦，是一个面向时尚男性消费者的新英伦美学时尚品牌。鳄莱特用PREMIUM和CLASSIC两大品牌系列面对18-58岁的崇尚时尚美学价值观的消费群体，把品牌的核心理念带给追求个性、时尚、高品位生活的现代时尚消费群体。ERATAT(上海)有限公司系外商独资企业，为ERATAT品牌设立于上海的全新公司，主要负责ERATAT品牌推广渠道和营销网络的开发业务。在品牌推广与营销上，ERATAT拥有一支经验丰富的国际化品牌运营团队，结合当下中国市场的特点，快速有效地拓展营销网络;同时与国内外各知名媒体，诸如CCTV-5、CCTV-2、湖南、浙江、东方卫视建立了广泛而密切的合作关系。