Great China Sales - Gaoxian

Great to have this wonderful portal that help me to identify undervalued stocks..... Have been accummulating China Gaoxian and today brought more at S$0.18 which is trading at less than 3X PE 2010. Interesting facts; 1) 2G Capital was allocated 19,000,000 placement shares during the IPO. 2) www.nextinsight.net/content/view/1611/60 NTA: 86.9 RMB cents ($0.1775) PE: 2.8x based on $0.20 Gearing: Net Cash Dividend Yield: 3.6% (only taken into consideration of half year dividend) 3) www.nextinsight.net/content/view/1700/60 However, Gaoxian’s executive chairman, Mr Cao Xiangbin, is upbeat about the sector outlook. He told investors at the company’s 3Q09 results briefing last week he is expecting 4Q09 to continue showing sequential quarterly sales growth. During 3Q09, the company increased its sequential quarterly sales for ‘warp knit fabric’ and ‘triangular-fibre yarn’, or artificial silk. These two products carry differential properties and enjoy gross margins of 4.6 to 8.1 percentage points higher than group gross margins of 31.7%. 4) www.nextinsight.net/content/view/1908/89 ALONG WITH the rising market,three stocks that look like they have good fundamentals have attracted market interest in the last few days. 5) Order book on hand grew to RMB 302 million as at 30 September 2009 from RMB 258 million and RMB 273 million as at end March and June 2009 respectively Anyone vested in this counter too? Cheers erelation

GOOD TIPS

I agree that Gaoxian is undervalued grossly, based on the financial data. Textile industry is recovering strongly in China, which suggests Gaoxian\'s upside potential is significant based on current low PE. DBS Vickers has its own picks for China stocks: Top Picks: Wilmar, Pac Andes, HLA, Midas, China Animal. We like Wilmar for consumer non-discretionary as it builds up presence in China. We also recommend that investors look at Pacific Andes, as it offers compelling valuations relative to its peers. Amongst consumer discretionary names, China Animal is expected to see EPS growth from development of new vaccines. We see Hong Leong Asia and Midas as key beneficiaries of continued investment in infrastructure in China. www.nextinsight.net/content/view/1980/79/