China Healthcare

[winston]

not vested. If it's a Singapore / Malaysian Operator, why call themselves "China" ?

China Healthcare Limited (CHL SP, $0.25, NOT RATED)

Not to be mistaken as an S-chip, China Healthcare is a home-grown company operating nursing homes and medicare centres in Singapore and Malaysia.

Valuation may not look cheap with historical FY Mar11 PER of 17x, but potential growth following its expansion plans and any further positive developments in China may pave the way for more upside.

Source: Kim Eng

[Musicwhiz]

Valuation may not look cheap with historical FY Mar11 PER of 17x, but potential growth following its expansion plans and any further positive developments in China may pave the way for more upside.

In my opinion, it's too risky to pay 17x for perceived growth and as-yet-unrealized potential upside in business development. If the plans do not come to fruition, valuations will collapse, as will profits, margins and cash flows.