Although the share price has risen to 26.5 cents, there still seems to be a lot reservation from the market.
Is this just another S-chip out to con investors?
Why didn't the company buy back its own shares recently, if it deems that the prospect will improve tremendously going forward?
potatolover: I think most Chinese management don't think like us, re suggestion to buy back shares. Sunsine could be at a juncture where there is great opportunity to acquire smaller players in order to further enhance its dominance in its industry. This is the Genghis Khan conquer-and-dominate strategy.
Did some rough calculations. Taking RMB43 m as net profit in 2Q, and RMB50 m in 3Q and 4Q .... add that to RMB23 m already booked in 1Q => 7.1 sgd cents per share.
The PE would be 3.8 on current traded price of the shares (27 cents).
We can peg the fair value at 8X earnings, thus the target price would be 56.8 cents.
Given Sunsine's dominance in its industry, perhaps 10x PE would be more appropriate. Thus, the target price would be 71 cents. :woohoo: