NTA : 22c
P/E : 3
AGRESSIVE SHARE BUYBACK BY COMPANY . SO NTA SHOULD BE GREATLY IMPROVED IN NEXT QUARTER ..
CONSISTENT DIVIDEND EVERY YEAR . ATTRACTIVE YIELD ABOUT 5% NOW .
CASH BALANCE Q1 2011 is RMB 797.6 MILLION .
Did a rough calculation for the cash company used for these share buyback exercise recently ..
Let says average price bought back at 10.5c x 6 million shares from open market
Cost : $630,000 or approx RMB 3.1 MILLION only
Think about their cash hoard of RMB 797.6 Million .
So much value they can create for shareholders by simply buying back shares or distribute solid dividend in future .
[hr]
[ZEN 29-09-2011]:
Very agrressive share buyback by company in Sept . Company must know that company is undervalued ...
Hey Zen, I hope you make money from Taisan. I once liked it too as a value play, but I worry about the competition from its peers. In other words, I am not confident of the resilience of its business. If Taisan can whack the share price up with its cash hoard, then they are doing right by minority shareholders.
Analyst BUY CALL . TP : 25c . ( End june 2011 ) We visited China Taisan Technology Group Holdings Ltd (âChina Taisanâ) recently at their Fujian factory. We believe the Group is in the right segment at the right time with performance fabric manufacturing poised to benefit from robust demand. We therefore highlight the stock with a BUY recommendation and fair value of S$0.25. This represents a 260% premium over the last close price of S$0.096. After studying their listed peers on the SGX and HKEx, we peg a 7x P/E valuation on their FY2011E earnings of 3.6 SG cents to arrive at our fair value.
– SGX Mainboard-listed China Taisan Technology Group Holdings Limited (“ China Taisan” or the “Group”), a leading producer of knitted performance fabrics for renowned sports and leisure apparel brands such as Nike, Adidas,Umbro, Li-Ning (æå®), Anta (å®è¸) Metersbonwe (ç¾ç¹æ¯é¦å¨), and Xtep (ç¹æ¥), announcedthat China Taisan has purchased 4 million shares from the open market over the last three trading days.
China Taisan embarked on a series of share buy-backs since last Friday (16
th Sep 11) with a purchase of 1 million shares at an average price of 11.4 S$ cents. Since then, another 3 million shares were acquired at prices ranging between 11.1 S$ cents and 11.4 S$ cents.
In response to the Group’s recent share buy-backs, Mr. Lin Wen Chang, the CEO, commented,“While we have faced challenging business conditions in the earlier part of this year, we are confident of picking up our growth momentum when the industry recovers given our strong balance sheet and net cash position. The stock is now trading way below our net tangible asset per share of 21.8 S$ cents 1 , and this presents to the Group with a valuable opportunity to conduct appropriate share buy-backs. We hope that our shareholders remain confident together with us.”
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