Eratat Lifestyle

ethan999
Offline
Senior Member

13 years 3 months ago #4958 by ethan999

Replied by ethan999 on topic Eratat Lifestyle on CNBC!

classic.cnbc.com/id/15840232?video=1742919883&play=1

Forward P/E ratio of 3.5

Strong Cash Position

Trading Below Net Asset Value

Zero Debt

Increasing Profit Margins

Developing New High End Product Lines for First Tier Chinese Cities

Increasing number of speciality stores and exclusive Eratat stores to build brand equity and awareness

Potential vertical integration downwards to sell directly to consumers

Great Proxy to Chinese Consumption Growth as China switches from a manufacturing-based economy to a consumption-based economy and with the largest migration to the cities in human history from China's 800 million rural residents, the bulk of China's population is simply going to become more fashion conscious as China' middle class continues to grow rapidly

Peers in Hong Kong like Anta, Li Ning and Xtep trading at P/Es ranging from 15-20

Anta is currently valued at 5.5 billion SGD producing 207 million SGD net profit a year.

Eratat forecasted to produce net profit of about 30 million SGD net profit this year (managed 9 million in the last quarter alone!) yet valued at only just over 100 million SGD! Compared to Anta's 5.5 billion.

Potential Multibagger for years to come.

Please Log in or Create an account to join the conversation.

Bestworld
Offline
Platinum Member

13 years 3 months ago #4959 by Bestworld

Replied by Bestworld on topic Re:Eratat Lifestyle on CNBC!

YES...still way undervalued! Time Watch is the other S-Chip one with similar quality and trading at way below valuation!

Please Log in or Create an account to join the conversation.

Mel
Topic Author
Offline
Platinum Member

13 years 3 months ago #4979 by Mel

Replied by Mel on topic Re:Re:Eratat Lifestyle on CNBC!

I dont think the stock would be trading at this low level of 27 cents after the 4Q results are announced next month. More like 30+ cents.

Please Log in or Create an account to join the conversation.

Mel
Topic Author
Offline
Platinum Member

13 years 3 months ago #5009 by Mel

Replied by Mel on topic Re:CHINA ERATAT

Eratat closed at 25 cents on friday. Why doesnt it just go for dual listing in Korea ... or HK?
People should ask the chairman when he is in town for full-year results briefing.

By right, Eratat's PE valuation should be easily twice as high as now. Stock worth 50 cents, in other words.

Please Log in or Create an account to join the conversation.

Bestworld
Offline
Platinum Member

13 years 3 months ago #5010 by Bestworld

Replied by Bestworld on topic Re:CHINA ERATAT

Share price is way undervalued now....no point going dual listing now. Wait till the price is being pushed up to 45c then consider that. That may eventually drive Eratat price to 80c!

Please Log in or Create an account to join the conversation.

ethan999
Offline
Senior Member

13 years 3 months ago - 13 years 3 months ago #5012 by ethan999

Replied by ethan999 on topic Re:Eratat Lifestyle, Severely Undervalued

To me it's certain that Eratat will go up by a few times, just got to be patient and wait for its true valued to be realised. I am prepared to hold on to it for years if need be.
As Warren Buffet once said, in the short run the stock market is a popularity contest, in the long run it is a weighing machine. In the long run Eratat will be fairly valued, patience is key.
As it is Eratat is already severely undervalued by financial ratios. Also, the Chinese consumer story will be the biggest, most significant momentous growth story of our lifetimes. We're talking about the urbanization and increasing purchasing power of 20% of the world's population, Eratat is poised to benefit from this growth story.
Furthermore, unlike many Chinese Consumer stocks listed in China and Hong Kong which are trading at P/Es in the range of 15-20, Eratat is trading at a forward P/E of 3.5, 10% below book value, despite growing revenue, net profits and gross profit margins.
Along with Qingmei, Eratat is probably the most undervalued company in SGX at the moment.

Last edit: 13 years 3 months ago by ethan999. Reason: Grammatical Errors

Please Log in or Create an account to join the conversation.

Time to create page: 0.292 seconds