Musicwhiz wrote:Hi Mr Engineer,
Could I find out from you on what you mean by "worst AR Transparency"?
I noted AmFraser "downgraded" it to 89c target price, still close to 80% higher than the last done market price. Any reason for their superb optimism or any justification for the higher valuations? How's competition? I understand there are a lot of unlisted 3G players in China. How will this affect Sinotel's business?
Thanks!
MW, your questions are tough to reply especially when I rushing off to work. lol. So i just make some quick remarks 1st.
"Worst AR Transparency" is a OPINION and not a fact. But here are some points to make such opinion.
- Some of the quarterly reports are copied and paste from excel onto the word document as pictures and pdf it. This means it is difficult for the investor or companies that summarizes AR to copy the info from the pdf into their own excel and do analysis.
- Most AR have 80-100 pages worth of information. Sinotel has only 60 pg for FY2008 AR. It looks like that cant be bothered or refuse to provide more information to investors. There are no pictures, no charts, no whatsoever.
- Sinotel does not provide simple segment revenue information. Such information is usually hidden in paragraphs or not even provided. This is a stark contrast to many other company AR.
To sum it up, I would ask myself whether is there something for Sinotel to hide?
On the analyst price and competition portion, I think this report might give you some answers. It should be due to the low p/e ratio as compared to the industry that gives it such high TP.
http://www.sharesinv.com/articles/2009/ ... dervalued/
As for the many players in the market, according to Sinotel, there were much more competition in the past then compared to current. If I am not wrong, there are only left 30+ players. Sinotel claim to be somehow ranked within top 10 of these players. According to them, barrier of entry are high in this industry as to qualified and certified to serve the large telecoms, it has to go through rigourous rounds of certification before new entrants can start doing the business. In fact, Sinotel said that the contracts are aplenty available and they are able to cherry pick them even if they are not top 3.