by stilicon » Mon May 25, 2009 8:18 pm
a) SIHUAN (BL5 on SGX) had a more than decent FY2008, with net result increasing +30/+35%, and operating result about +50%, operating cash-flow + 30%. 1st quarter results were also good. It has no debt, no shrinking market as many others are or will be experiencing soon. The management seems prudent, honest and competent (But this, I wish I knew more about it). At least, it continues to pay a decent dividend, which is always a sign of respect for shareholders. No vicious script-scheme here (at least until now). (I won't dwel on the FA, for people can do it themselves / or always argue rather indecisively (and stupidly).)
So, present valuation is not demanding. Few people posted about this, either here or through the "super-analysts" of CIMB, DBS, OCBC and Co (although I am always happy to read them ...)
b) I don't see any reason why the future of pharmaceutical lab. in China should be seriously impacted by the current Global Recession, except through relatively minor indirects ways.
c) SIHUAN during the last two years has always been undervalued compared to similar/bigger companies listed on HK, but rose with a few months delay. Take for example and comparison SINO BIOPHARMA (1177 on HKEx). During the last 5/6 month, this latter company surged (about 85% in 6 months). In comparison, SIHUAN move about +35%. (and the SGD/HKD doesn't explain such a discrepancy alone, by far).
The results for FY2008 of SINO BIOPHARMA were merely good or correct (except for operating cash-flows which were a big +, but again, no detailled FA here).
=>My point is : from an investment point of view (I don't do trading on SGX, being too far away), SIHUAN is one the best value propositions I see, now that so many things have gone so wildly up in the last two months.
To me, the future of SIHUAN is
a) it continues to develop as today and the past few years, and treat its shareholders well with fairly decent and hopefully increasing dividends, or
b) sometime in the future, get purchased by a bigger fish (fine by me).
I would welcome contradiction and opposite views on this co.