Sinostar Pec

For info, this is the 5th purchase for the month of december.

Major shareholder bought another 189000 shares at an average price of 14.2 cts on 29 dec 2016.

Since my posting on 8 dec '16, the stock has gone up by 34.7%. ...
from 11.8 cts to 15.9 cts.
Am still holding.

20 cents already. Wow. Joseph, kindly advise what price to sell.
Thanks!

Sorry Garak ... its very difficult to advise people on when or at
what price to sell.
Myself .. am still holding n waiting for full results. Will decide at
that time.

Sinostar Pec has just released an excellent set of results. Share w you some figures below -

1. Revenue (RMB x1000)

year' 16 - 1,559,881

year' 15 - 1,446,110

up - 113,771 // 7.9%

2. Net profit (RMB x1000)

year' 16 - 89,803

year' 15 - 40,735

up - 49,068 // 120%

3. Debt - zero

4. Cash - 494,570 (RMB x1000)

5. Nta - 0.96 (RMB x1000)

6. Dividend - 0.5 (Singapore cents)

Comments -

a) cash is 71.8% of its capitalization.

company has a cash horde of around S$98.9 mil and no debt. This is equal to

71.8% of its capitalization (S$137.6mil based on closing price of 12.5cts).

b) likely higher revenue for current year - 2017

revenue for year 2016 is inclusive of 5 months of new business from the logistics

and transportation business. Year 2017 or current will see a full contribution from

this sector. This means that revenue for current year will be much higher.

Just sharing ..


Quote below my earlier posting :

Find this company interesting, under-valued and neglected ... generally, outside the radar of most investors.

Below are some interesting datas about the company:

1. company has zero debt .. no debt.

2. company has a cash horde of S$95 mil

3. its captalised at S$76 mil based on current price of 11.8 cts

4. has been profitable in the last 9 quarters.

5. last financial year (2015) profit was S$8.1 mil

6. current year (2016) 9 month profit is S$14.3 mil. This is 76.5% higher than the whole of last year.

7. nta is 18.6 cts

8. p/e (price earning ratio) for 9 mths is 5.3. If current profit trend continue, the forward p/e would be less than 4

9. cash backing per share is 15.5 cts.

10. company declared a dividend of 0.5 cts per share

11. dividend yield is above 4%

12. recently major shareholder has been buying shares in the open market.

My view is .. this company is grossly under-valued. Its trading below its cash level, it has a dividend of above 4%,

major shareholder buying back shares, its trading below nta, has been profitable in the last 4 quarters, no debt,

management confident of ability to maintain outperformance.

Above for sharing only, not an encouragement to buy or sell. I am heavily vested.[/quote]