Sinotel Technologies

Sinotel Technologies

Postby millionairemind » Wed Aug 06, 2008 7:54 pm

Sinotel’s Order Book Swells To Rmb292m

Mainboard-listed Sinotel Technologies, an innovator in the provision of wireless telecommunications infrastructure and solutions in the PRC, announced that its order book as at 30 June 2008 has appreciated to approximately Rmb292m, on the back of a Rmb234m boom in 1H08. The company is in the midst of a major growth phase for China’s telecommunications sector that is likely to see billions of Yuan being injected as capital expenditure over the next few years. Sinotel is one of the industry leaders positioned to benefit from this explosive growth in infrastructure and services development.
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Re: Sinotel Technologies

Postby winston » Tue Sep 08, 2009 12:07 pm

From Kim Eng:-

Sinotel Technologies, which recently added Barron Partners LP to its list of shareholders, has applied to the US Securities and Exchange Commission (SEC) for the setting up of an American Depository Receipt (ADR) facility.

It has also officially engaged the services of The Bank of New York Mellon, one of the four depository institutions that provide ADR services in the US, and American law firm Sichenzia Ross Friedman Ference LLP to establish the facility.

The China-based wireless telecom service provider said that the proposed ADR facility will increase its opportunity to carry out future fund-raising activities when required.

'The ADR will also enable the company to attract foreign investors since they are not required to bear time difference, cross-border transaction fees or currency exchange fees and will thereby expand the investor base of the Company and increase the liquidity of its shares,' Sinotel said yesterday.

(Sources: Company, SGX, Business Times, Dow Jones)
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Re: Sinotel Technologies

Postby winston » Fri Sep 18, 2009 7:44 am

Not vested. From Phillips:-

Sinotel Technologies Limited – Update (Mark Chow)

Recommendation: Buy
Previous close: S$0.685
Fair value: S$0.93

• Maintain BUY call at fair value estimate of S$0.93. The initial step to this ADR facility has been achieved i.e. approval of the ADR facility. The next step would be establishing a market maker before US investors can start trading the ADR.

We maintain our view that the completion of the ADR facility from approval to
initial US trades should serve as a significant catalyst and maintain our BUY call with target price remaining at S$0.93.

We will be monitoring the development of the ADR facility closely and issue updates as and when appropriate.
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Re: Sinotel Technologies

Postby memphisb » Sat Sep 19, 2009 7:33 am

next few weeks will be critical.

The placement of new shares have 'reach hands of their holders' . I forsee heavy resistant if they decided to sell for quick profits. If not def, somewhere close to the price $0.80

Detect and sell along or before them is my strategy.
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Re: Sinotel Technologies

Postby winston » Wed Dec 02, 2009 11:45 am

Not vested. From DBS:-

DBS Research is initiating coverage on Sinotel with a Buy rating and target price of S$0.88, which offers over 60% potential upside.

Sinotel is among the top 10 players in the Wireless enhancement sector in China, which is set to benefit from rising share of telecom spending.

Valuations are appealing, trading at 55% discount to sector average PE. The stock also looks cheap on FY09F P/B of 1.5x for 28.9% ROE.
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Re: Sinotel Technologies

Postby millionairemind » Tue Mar 02, 2010 7:09 pm

The results out.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

I was discussing this with another forummer today on this. I did my three min drill on the Fin. Statement and have the following to say.

1. Inventory has gone up 30%

2. Acc. rec. has gone up more than 100% even though the rev increased only 47%. This is a potential problem. Extending too long a credit term can run into bad debt problems later .

I digged around a little (not too much la cos' it did not pass my test :D ) and compared the numbers to 3Q. There is actually quite a big deceleration in earnings from Q3 to Q4 .

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

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Re: Sinotel Technologies

Postby Musicwhiz » Tue Mar 02, 2010 7:13 pm

Thanks for highlighting, MM. I know Sinotel is somewhat of a hot potato, with a lot of incessant coverage by brokerages and also NextInsight.

At first glance, COGS went up more than Revenues, so gross margin was affected. Another thing - why G&A expenses up 62% when revenues just up 47%? And Finance costs literally ballooned... :shock:

You are right about Inventories and Trade Debtors. The increase looks scary indeed.

Cash flow Statement wise, there was -ve operating cash flows. This was due to the longer collection period for Receivables.

So yes all in all, it does not look good.

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Re: Sinotel Technologies

Postby mrEngineer » Tue Mar 02, 2010 11:51 pm

finally someone that I can talk to on this counter fundamentally. haha.. you know how hard is it to find fundamental coverage on this stock in forums?

yes. I am somewhat concerned with their numbers. but 1st of all i like to clear some air here.

1. Sinotel industry has an inherent high receviables due to the long cash conversion cycle of the business. If compared to competitors, it was doing well in 2008. I am not sure about now. Will calculate the actual numbers soon. So what I mean to say that it might not be a concern as this is industry wide phenomenen.

2. Gross Margin was affected as explained in the statements as they have more contribution from system integration and equipment sales business.

Now let me state my concerns on this stock:
1. Inventories went up -> probably due to business expansion
2. Placement issues -> obviously to reduce the impact of -ve operating CF and investing CF, means I suspect that the cash position is dubious
3. No dividend paid ever since listing
4. Unable to find the increase in bank borrowings in the financing CF statement
5. ADR did not have any impact on the stock price after the listing is completed
6. Too much coverage on the stock. It seems like to be controlled by syndicates.
7. Extremely bad AR reporting format. No pictures, no nothing.. lack of transparency
8. Goh Chee Wee is independent director of Sinotel and Sino-Env. Don't like what I found when I google his name.
9. You can basically find nothing on the net on the company info. Even the chinese name of the company is different and nothing much can be found on google.cn
10. Currently trading below both placement price of 0.5 and 0.57. I wonder why market rate it so badly..

The sole reason that I am vested is that I m betting on the transformation of China mobile markets into 3G..

So forumers pls give some qualitative or quantitative feedback on the results especially the account receivables, inventory, payables, assets and liabilities..

This is my MOST worried counter.. thanks..
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Re: Sinotel Technologies

Postby Musicwhiz » Wed Mar 03, 2010 12:12 am

Wah Mr Engineer,

Very detailed. Thank you. I love such stuff!

But I need time to study the company before commenting. This is a most interesting case. :)
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Re: Sinotel Technologies

Postby mrEngineer » Wed Mar 03, 2010 12:37 am

thanks musicwhiz. its encouraging comment from you. looking forward to you feedback if any.

hope you will let me know something before you issue a analyst report on this counter. haha
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