I am not vested yet. After researching on it's competitors and clients show that taiya konggu is having a strong June -sep quarter. Less risk of qingmei stellar Q1 results being cooked since the peers is also doing well.
However, its major clients such as Xtep anta etc, it's reporting weak or flat profits growth guidance going into 2012. Qingmei growth so be flat, best case scenario, or fall by 20-30% (worst case scenario). as written in my previous post, assuming the worst for next 3 quarters, qingmei is still trading sub 2 forward PE.
On my radar screen, but I will stay out of the market for the time being... I am still bearish about market. All good news are from china and US, but the epic center of crisis, Europe seems to be worsening. I believe market has not account that.
Also, qingmei does show some worrying coporate governance issues. After scrip, the chairman will save the company from paying 11 million to himself. Assuming 35% opt for cash, company need to pay 5.5 million, but chairman raise some 3 million from it's sale of shares. So amt pay out as dividend is a paltry 2 million plus, too small to guage if the cash is still there, and too small to cost any disruption to operations if Any funky business is going in...
Thought chairman will go for all scrip? He owns more than 60% of the company, if he alone opt to covert 60%. Of his sharesholding and no one else go for scrip, then the new shares issues should be around 71 million not 39 million as announced in SGX . That's means he didn't opt for all scrip as he said he would. Maybe I misread his intention, but I give up on this stock... Cannot trust the chairman to keep his words...
If you wish, u can verify it with the Investor Relations people at Citigate.
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