Sinostar petrochemicalPhoto: Company
The following is adapted from Joseph Yeo's post on 8 Dec 16 in the NextInsight forum. Since then, the share price has risen 29.7% from 11.8 cents to 15.3 cents.

I find this company interesting, under-valued and neglected ... generally, outside the radar of most investors.


Below are interesting data about the company:

ABOUT SINOSTAR PEC 

♦ One of the largest producers and suppliers of downstream petrochemical products within the 400km radius of its production facilities within the Dongming Petrochem Industrial Zone in Dongming County of Shandong Province, PRC.

♦ Located within the Zhongyuan Oilfield - one of the PRC’s largest oil fields, rich in energy resources and connected by a comprehensive logistics network.
Its strategic placement permits it to serve the nearby populous and industrialised provinces such as Shandong, Henan, Anhui, Shaanxi, Hebei, Hubei and Zhejiang.

1.  zero debt

2. cash horde of S$95 mil

3. market cap at S$76 mil based on current stock price of 11.8 cts

4. profitable in the last 9 quarters.

5. last financial year (2015) profit was S$8.1 mil

6. current year (2016) 9-month profit is S$14.3 mil. This is 76.5% higher than the whole of last year.

7. NTA is 18.6 cts

8. PE (price earning ratio) for 9 mths is 5.3. If current profit trend continues, the forward p/e would be less than 4

9. Cash backing per share is 15.5 cts.

LQM E57322Yes, there is a stigma on S-chips, but from my many years of investing, I have noted that most scandalous S-chips were hot stocks before the scandals surfaced and normally within 5 years of listing.

Sinopec was never a hot stock and have been listed since 2007 ... 10 years. So I am quite comfortable with it.


The major shareholder bought shares in the open market on 4 occasions this month. At the current price, the stock is still trading below its cash value of 15.5 cts per share.

Company has no debt. Its profit for 9 mths current is S$14.3 mil. This implies a forward p/e of less than 4. To me, it's still undervalued. 

-- Joseph Yeo

10. Dividend of 0.5 cts per share

11. Dividend yield is above 4%


12. Recently, major shareholder (non-executive chairman) has been buying shares in the open market.

My view: This company is grossly under-valued. It's trading below its cash level, it has a dividend yield of above 4%.

Major shareholder buying back shares, stock is trading below NTA, company has been profitable in the last 4 quarters, has no debt, and management sounds confident of its ability to maintain outperformance.

Above for sharing only, not an encouragement to buy or sell. I am heavily vested.


Share Prices

Counter NameLastChange
AEM Holdings5.000-0.080
Avarga0.2700.005
Avi-Tech Electronics0.380-
China Sunsine0.500-0.010
Food Empire0.775-0.030
Fortress Minerals0.395-
Geo Energy Res0.275-0.015
Golden Energy0.295-0.015
GSS Energy0.072-0.003
InnoTek0.770-0.020
ISDN Holdings0.695-0.045
ISOTeam0.133-
IX Biopharma0.230-
Jiutian Chemical0.072-0.001
KSH Holdings0.350-0.005
Leader Env0.072-
Medtecs Intl0.4000.110
Moya Asia0.064-
Nordic Group0.380-0.015
Oxley Holdings0.1930.003
REX International0.270-0.015
Riverstone0.7100.020
Sinostar PEC0.300-0.010
Southern Alliance Mining0.705-0.010
Sri Trang Agro1.2800.050
Straco Corp.0.470-
Sunpower Group0.485-0.020
The Trendlines0.107-
Totm Technologies0.1790.014
UG Healthcare0.3250.070
Uni-Asia Group1.250-0.050
Wilmar Intl4.220-0.100
Yangzijiang Shipbldg1.300-0.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 555 guests and no members online