Thursday, August 12, 2010

Great Group Holdings Limited I5H.SG

Symbol = I5H.SG
Operation = China
52Wk High = 0.460 (During IPO)
52Wk Low = 0.235

ROA = 21.12%
ROE = 23.96%

EPS = 0.354 RMB = 0.071 SGD
P/E = 0.3516

Intrinsic Value
P/E Model = 0.426 SGD (Based on Fair P/E of 6)
DCF Model = Not aplicable due to fluctuating free cash flow and CAPEX
EPS Model = 0.842 SGD

Comment
A conservative intrinsic would be 0.426 SGD which falls within 52wk range. Fair P/E of 6 is reasonable within the industry (CHINA SPORTS and CHINA HONGXING), both of which delivers rather disappointing result in recent quarter.

With the doubling of Great Group Holdings production line and increasing home-brand recognition, market capitalization would increase measurably.

Overall it is a good stock for long term investment (1 year - 2 year)

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