03-03-2014, 10:33 AM
In a nutshell, base on FY13 report, the company invested $1 ,and able to generate a revenue of $1.3, and net profit of 5.9 cents (4.5% net profit margin), so the unleveraged return on on investment was 5.9%.
The company has borrowed for its expansion. Cost of capital is more than 6% (slightly above benchmark rate of 6%).
The company is running a losing business, even revenue growth was 20% on average in the last 3 years.
Will the company turnaround? Unless it gains pricing power, and ASP increases...
(not vested)
The company has borrowed for its expansion. Cost of capital is more than 6% (slightly above benchmark rate of 6%).
The company is running a losing business, even revenue growth was 20% on average in the last 3 years.
Will the company turnaround? Unless it gains pricing power, and ASP increases...
(not vested)
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