22-10-2013, 03:21 PM
Shanghai Turbo Enterprises Limited is a precision engineering group that specializes in the production of precision vane products engages in the manufacture and sale of precision vane products, which include stationary vanes, moving vanes, and nozzles for use as components in steam turbine generators used for power generation in power plants, power stations, and sub-stations.
At current price of SGD 8c, it gives dividend approximately 6% at a payout rate of 17%, valued at 0.4 of NAV, and has a net cash of CNY 20c per share as at 30 June 2013. It seems attractive but surprisingly I could not find any forum discussion on this stock, the company's website is not accessible as well.
Nonetheless, I try to give some review based on the minimum knowledges I have.
Why should you buy
1. significantly under valued,
2. yearly dividend at very low payout ratio,
3. half of market cap is formed of cash,
4. management ever issued profit guidance, that means better IR comparing to the rest of S-Chips
Why you should not buy
1. Lack of access to information, no analyst coverage,
2. AR increased 33% in 6 months (Jan to June 2013),
3. AR amounting to CNY111M which is 75% of 2012 annual sales,
4. Dividend reduced from CNY 5c in 2011 to 2.5c in 2012 while revenue and profits increased during the same period,
5. S-Chips, S-Chips, S-Chips!! Figures could be fake
Conclusion
I need to admit that I didn't do much research into this company, it is indeed quite hard to retrieve corporate and financial information as they aren't available on the internet. Given the fact that it is an S-Chip, and the financial ratios seems too good to be true, I would rather just avoid for now.
Any sifus are watching this one and can share some insights and help to correct my understanding, thanks.
At current price of SGD 8c, it gives dividend approximately 6% at a payout rate of 17%, valued at 0.4 of NAV, and has a net cash of CNY 20c per share as at 30 June 2013. It seems attractive but surprisingly I could not find any forum discussion on this stock, the company's website is not accessible as well.
Nonetheless, I try to give some review based on the minimum knowledges I have.
Why should you buy
1. significantly under valued,
2. yearly dividend at very low payout ratio,
3. half of market cap is formed of cash,
4. management ever issued profit guidance, that means better IR comparing to the rest of S-Chips
Why you should not buy
1. Lack of access to information, no analyst coverage,
2. AR increased 33% in 6 months (Jan to June 2013),
3. AR amounting to CNY111M which is 75% of 2012 annual sales,
4. Dividend reduced from CNY 5c in 2011 to 2.5c in 2012 while revenue and profits increased during the same period,
5. S-Chips, S-Chips, S-Chips!! Figures could be fake
Conclusion
I need to admit that I didn't do much research into this company, it is indeed quite hard to retrieve corporate and financial information as they aren't available on the internet. Given the fact that it is an S-Chip, and the financial ratios seems too good to be true, I would rather just avoid for now.
Any sifus are watching this one and can share some insights and help to correct my understanding, thanks.