their latest Q4 and FY10 profit is largely supported by 4.1mio gain from sale of property in shanghai. if you remove this item, their results look pretty bad. NPAT will probably be 30% lower than FY09, and net margins will be about 2.5%. inflation is their biggest problem now. if inflation persists and selling prices stagnate, more growth and sales may actually lead to losses.
roe is about 13% but p/b is about 2.5x. which mean returns on your equity is about 5% for FY10.
the business has good marketing and strong sales, but doesn't seem to enjoy good economics. despite their high selling prices, they still can't grow their margins. these reasons makes the current share price over-value the business. i think there's alot of expectation already built into the share price.
roe is about 13% but p/b is about 2.5x. which mean returns on your equity is about 5% for FY10.
the business has good marketing and strong sales, but doesn't seem to enjoy good economics. despite their high selling prices, they still can't grow their margins. these reasons makes the current share price over-value the business. i think there's alot of expectation already built into the share price.