When will this industry be re rated? It has been so long since the analysts have looked into this industry. These counters could be to be multi baggers IF (A BIG IF) it is gonna be re-rated anytime soon. Most of the textile companies have been report higher revenues and profits for FY10. Below are the trailing PEs for some of the textile coys listed on the SGX.
China Gaoxian - PE 3.5X
China Taisan - PE 6
Li Heng - PE 6
Foreland - PE 7
Hongwei - PE 4
China Fibretech PE 10
Among these 6 names,the biggest & most profitable is Gaoxian with its S$80 million net profit a year. This is the one to watch. The recent selldown is a result of panic selling and herd behavior.
