||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Real-Time news about China Shoto (London Stock Exchange): 0 recent articles
|rivaldo: Well done to holders. I wasn't holding, though was thinking of getting back in if the results and outlook were up to scratch. The results were OK, but with a downbeat outlook, and I think holders would have had to wait a long time to achieve 380p again ordinarily. On balance therefore it's probably better to have a bird in the hand as of now.
It's a shame though, as CHNS is a quality company. Perhaps some of the CHNS money will be recycled into the likes of GNG and PMHL (he said hopefully!!). I can see PMHL going the same way as CHNS eventually if the share price doesn't improve, but believe GNG will continue on AIM given the Board's enthusiasm for visiting the UK and liaising with shareholders plus the likes of Patrick Evershed's keenness on GNG.|
Do you mean CNT?
CNT had net debt of (-£97.5m ) whereas CHNS has Net Cash of +£3.2m
CNT had Tangible Assets of (-£46m) equivalent to twice the share price (negative) whereas CHNS has Tangible Assets of £76m equivalent to 1.75x the current share price (positive).
CNT went bust because of 'Trade Payables' not 'Trade Receivables'. Their suppliers refused credit leaving a £160m hole in their balance sheet which their bankers were unable to fund against non-existent net tangible assets. Whereas CHNS as we speak have no problem with Suppliers, Zero Net Debt with Bankers and as I say Net Tangible Assets of 1.75x the current share price.|
|rivaldo: CHNS' results are an interesting conundrum as usual :o))
The initial market reaction was of course bonkers given 21.6p EPS for H1 alone. If anyone got shares at 150p or so then congrats.
EPS performance is good despite increased tax etc. Will tax rates fall in future with CHNS' "green" initiatives?
CHNS have reacted quickly and cut costs accordingly
The recycling facility is expected to expand and boost profitability in H2
Balamnce Sheet/cash looks solid despite poor cash flow as usual in H1. This should pick up, again as usual, in H2
The outlook is opaque and gives no indications as to full year performance, despite already being near the end of September. One could say that the statement that H2 is normally better than H1 is a small clue, but who knows?
The lack of an interim divi is a small negative, but they've done this at least twice before and paid a full divi at the year end, so not really a sign of anything in particular
Exports aren't growing as fast as hoped in replacing domestic sales
The lead price linkage scheme didn't work in CHNS' favour as in the past
A real curate's egg again. I won't be reinvesting just yet given the lack of clarity going forward - things really could go either way.
But for holders I can't see the share price falling much either given the high tangible net assets, CHNS' domestic leadership in its sector etc etc.
Could CHNS even become a bid target at these levels I wonder? Obviously the head honcho and his plans and needs going forward are key.
It's fascinating to watch the ups and downs of companies like this over time.|
|the diviner: It appears that as soon as the announcement about the 15% reduction in profit was made public the CHNS share price was dropped by a huge margin, (by the market makers), before the market opened.
Since then the reduction in share price has been a self fulfilling prophesy with momentum being created by those who use stop loses.
A 15% reduction in profit does not justify a 50% reduction of the share price.
CHNS share price = 230p
PE = 2.34
Yield = 2.27%
Tangible gearing = - 57.4%
PTBV = 0.77
The CHNS growth is 128%.
These are not bad numbers and they indicate that CHNS is a buy but people will need to do their own research.|
|njp: What is about the CHNS share price that makes it so touchy? Thinly traded.|
|greek islander: Forced out yesterday of my spreadbets here only to see the share price shoot up. Hate these things when they happen (too often). Luckily still holding a big hunk of stock and waiting for another chance of re-entry at IG Index.
Cannot really grasp why the drop in the share price after such fantastic results though guess the Indian factor is one reason and of course the poor state of the market in general.
What is about the CHNS share price that makes it so touchy?|
|mattjos: Cheers Martin .. the trend tells the story really & Shoto, for a relatively young company, are doing fine, imo.
Pro .. re. your question. I cannot comment on how the market reacts to an AIM listed chinese co such as this. Shares are quite tightly held so it's likley the PI that will influence the shorter term moves.
I try to put myself in the CEO's position & ask what would i do that's best for the company & it's shareholders on a ling term basis .. the short term share price movements are secondary to that responsibility
Shoto does need cash for it's re-cycling project. The project is a sensible step up and a well proven business model by larger global battery manufacturers. In China especially it is even more important to be seen as the champion in the region/sector & in leading the move towards modern, clean manufacturing business practice.
So I ask myself, what 'tools' does he have to achieve the expansion?
1. Cut the divi
2. Place some shares
3. Borrow from the banks
4. Govt funding for such 'green' projects
5. Achieve a re-rating of the share price and raise some funds on that back of that action
And what are the relative costs of each activity?
And what main market activity have we seen since this was first revealed, outwith the 'noise' of day-to-day?
For a relatively young company i feel Shoto has been a generous dividend payer. Maybe it felt it had to be so in order to attract investors so early in it's growth.
I see that the whole China situation has now changed since Shoto first came to market & investors much better understand the marketplace & its attractions & actually now seek out Chinese companies to invest in becasuse that is where the growth is going to be short, medium & long term .... much more so than in many other countries.
I, personally, do not like to see companies taking on debt and in parallel maintaining / increasing the divi .. that's a stupid thing imo, just to maintain market standing and/or credit ratings. the business has to be the head that wags the tail not the share price & the short term market expectations.
If the business has an attractive oportunity in front of it and the cost/benefites are persuasive then it makes sense to go for it ... and the funding should be done as efficiently as possible too.
In the marketplace we have seen the house broker suggest it is very undervalued. We've see Shoto come to town with a story to tell and one fund has picked up about 250k shares so far since that visit .... some other fund/insti has of course trimmed/sold out completely to facilitate that ... that transaction was cleary agreed between parties.
The volume on the deal was about the same as a similar event in April 07 ... at that tiime the share price was around 165 ... so if iot were to be the same parcel of shares, let's say, the seller has seen a rise from 165-279 in 21 months .... that's a pretty good return on such a large stake in a small-cap + the divi .... at one point the holder probably wondered if they'd ever get out of it in profit!
A new holder has taken on 200k shares at 297 & been active in the market ever since taking more at up to 330 & then becoming less aggressive & letitng the share price fal back thru 300 before picking up more at 290'ish ..... going to end with about 300k'ish shares at a 300 average i reckon .... so they're having a £1m punt on Shoto is the way i see it.
On that basis i'm pretty happy to be holding.
how Shoto gets its funds .... they've made good use of cash all along the way & I'd anticipate them doing the same at this juncture ....
If they go to the market for some of the funds then the most important thing is how they 'sell' it to the markets ... if the lead re-cycler is as good an idea as i believe it is then they must communicate that cleary to the markets .. a sales job is now required by them.
Achieve that and whatever actions they take should be well received and not misconstrued by the market ..... as Shoto is constantly by the less well informed.
At this stage they can be their own worst enemy or their own best friend & the markets initial reaction will be based on their communication.
Whatever the short term moves may be ..... Shoto is still too cheaply priced, imo & a good investment on an 18 month-2 year timescale & probably very much longer too|
Agreed, in fact, CHNS share price could double from here to 400p and still be very cheap for a growth stock of this calibre ... share price = 400p => PE ~ 8.5 only.|
The CHNS share price rose from 98p to 240p this year; or 142 points rise. Recently, there has been a drop of 80p or just over a 50% retrace.
Like a psychic and tea-leaves, you can find reasons and answers anyway you wish. Because, unless an RNS appears offering a concrete reason, every explanation written on this BB is simply speculation.|
|radarlove: slap you need a tickle to calm down.
The present consolidation of 3.5 months is a healthy sign and often required before a share price experiences a further rise. All eyes have been on WCC. Once investors exhaust their bullish ways, they will return to CHNS with pockets bulging from recent profits.
So long as the September results meet expectations, I would expect a further CHNS share price rise leading up to or after these interims.
What we need is an RNS stating the date of these results and so give investors a future focus. Unfortunately, past history suggests the CHNS PR machine lacks such a refinement.
Perhaps, rivaldo could contact the company; acquire this date; and post it on the BB.|
China Shoto share price data is direct from the London Stock Exchange