-3x Short China Discussion Threads

[maxcashflow] 21/1/2011 07:55

Wow, it sounds terrible but the numbers are way above my expectation.

Last year net profit was 23.4, 30% down will be 16.4, or EPS of 70p. That's hugely above expectations of 59.7p (post 1057 above).

In H1 CHNS did EPS of 20p, so H2 EPS will be 50p, very impressive. If H2 continues 2011 could be massive.

edit: fixed numbers - made error in haste!

[eacn] 21/1/2011 07:51

The RNS implies EPS of around 70p, giving an historic PE of 4.25. That is a 27.5% compound increase in EPS since 2008 (EPS 43p). Although that is materially lower than the growth rate in 2006 and 2007 it remains a decent rate of growth.

[stegrego] 21/1/2011 07:44

Last year was massive eps so 30% down is a good result. I think.....
Horribly worded statement.


Does it mean they have done 67p eps?
Net profit of 16 million?

[arthurly] 21/1/2011 07:41

I don't hold but actually that's not a bad result at all.

[fft] 21/1/2011 07:36

net profit 30% down compared to last year is not the end of the world. Still a low P/E, and in a number of good growth sectors.

[miti 1000] 21/1/2011 07:32

after that trading statement...I reckon IC should be shot!!

[royaloak] 14/1/2011 15:03

In a list in today's IC of small caps with consistent growth but valuations that lag.

[boadicea] 12/1/2011 11:01

Should get a trading update soon - probably week after next on previous pattern.

[crawford] 12/1/2011 09:18

China Shoto (CHNS, 302.5p, £70.31m)

China Shoto (CHNS, 302.5p, £70.31m) The Chinese back-up battery manufacturer has announced the completion of the previously announced sale of its 51% shareholding in Yangzhou Zhenge Power Supply Co for some RMB4m, a modest increase on the original purchase price of £0.22m. A logical move to remove what had become a diversion to the management. We see the group as badly under-valued with forecasts of £16.1m PBT increasing to £19.3m and EPS of 59.7p rising to 71.5p putting the group on a prospective PER of just 5.1x to December 2010 falling to 4.2x. While the UK investor correctly discounts Chinese stocks due to increased risks there is potentially a 20% increase in the value over the next year. We move the group up to a BUY with a 360p price target. (Julian Tolley)

[bbluesky] 07/1/2011 18:08

Rajauk I agree in the no surprise element. The Chairman's purchase at 180p of I forget whom, but for the thread say a "director's", has to my mind always made him top heavy and the obvious base for a tranche to HK without impacting his control. No idea when but if I was his shoes it would my choice, not for profit as I don't think that is his motive and hence the half empty RNSs', but for better future financing opportunities, as Shoto is in a fast growing market.... Ten year hold, it really could be.

[rajauk] 06/1/2011 21:47

They only need to announce their intention to list in HK and this will double. Well smaller companies then CHNS have taken that step so wouldn't come as a surprise if they decide to go for it.

[philw2009] 06/1/2011 21:42

A mention on IV re. 'Ways to play the China opportunity':-



"Elsewhere, China Shoto has built a business based on supplying industrial back-up batteries to the Chinese telecoms operators. This is a booming sector as mobile use in China expands at an eye-watering pace. But Shoto was caught out by a temporary hiatus in demand in 2010 after government stimulus packages wound down and private sector investment momentarily failed to fill the gap. Furthermore, the company's communication with its UK investors has also been a source of criticism and did not help sentiment when it warned on profits."

[mattjos] 06/1/2011 19:08

do i detect a hint of bullishness here now? not so many with that belief sub-200 but now we're on a run the belief is back. fwiw, some interesting reports out of Oz lately re lead refining suggesting prices look set to remain firm on the raw material front. That recycler will prove a good investment in the years to come.

[rhuvaal] 06/1/2011 18:58

am savouring a HK listing - whenever...

[evaluate] 06/1/2011 16:35

Looks like it wants to break through the £3 mark.

Could fly when it does.

[dreggspicker] 06/1/2011 08:51

I'm still 'ere .....

[yump] 06/1/2011 08:50

Its already done quite a few out of that 10 years - doesn't look like there were many 10 year holders in it.

[rhuvaal] 05/1/2011 19:24

and some say it could be a 10-year hold :)

[crawford] 14/12/2010 11:45

Seymour Pierce 350p price target:

[martylangan] 10/12/2010 15:41

Yeah and if/when the news comes out about these delivering a juicy end of year dividend then people will be scrambling to get hold of them...

[arty] 10/12/2010 09:39

Yep, I couldn't believe we dropped below £2, it wouldn't surprise me if despite everything he'll surpass last year's figures. He is clearly a very cautious character and prefers to under promise and over deliver..... contrary to most CEO's.

[dick grasso] 10/12/2010 09:25

bout time i say ARTY!

[arty] 10/12/2010 09:22

Online limits currently set at max buy 500, max sell 5000 (idealing) possibly shows a bit of demand out there.

[andyh21] 02/12/2010 16:12

nice bit of recognition and looks like it may well be attacking that £3 level in the very near future!