the old man must have given heads up to abu on some petronas projects...

latest quarter result should be good. they had the star points campaign earlier, would have driven circulations up

still holding on will buy more below 0.22

old names gone, reappear as new... something cooking...

Extract from the edge, more questions on CSL. Next week 0.20 on sight...


I feel compelled to return to China Stationery Ltd, which I wrote in this column on 5 Oct 2013. There are troubling facts that are inconsistent and not logical, at least to me.




Below is an extract of the last two years financial information




China Stationery Ltd

Extracts of Financial Statements

RMB’000 RMB’000

31 Dec 2012 31 Dec 2011

Cash and Bank Balances 1,889,491 1,327,077

Borrowings 54,400 49,100


Amount due to a shareholder 38 71,746

Revenue 1,980,628 1,774,710

Cost of Sales (1,110,626) (979,207)

Gross Profit 870,002 795,503


Gross Margin in % 43.9% 44.8%

Interest Expense 8,261 41,908


Interest Income 7,014 5,200

Imputed:

Interest rate on borrowings 15.2% 34.7%


Interest rate on deposits 0.37% 0.39%




It raises many questions, such as:




1) What stationeries are sold by China Stationery Ltd that generate an astronomical 44% gross margin? The company makes plastic stationery, plastic tape printer and ink.

2) Why does the company borrow when it has so much cash?

3) In 2012, the company paid back RMB 71.7 million to its shareholder. Is this the controlling shareholder?

4) Why is the total effective cost of borrowing between 15% and 35%?

5) Why was the company paying a hefty 57% interest rate, with RMB 38.9 million interest on a RMB 68.5 million convertible bond in 2011?

6) Why are the bank deposits of some RMB 1.9 billion earning only 0.4% interest when the 1 year deposit rate in China is over 3%?




In our previous report, we also indicated that the major shareholder, Lead Champion, has sold down from 71.85% to 23.43% since the beginning of this year.




China Stationery Ltd is a Bermuda registered company. Its principal place of business is in Fujian Province, China. It is listed in Malaysia. Its independent auditor is in Singapore.




The stock price may look “cheap” now. The cash available per share, accordingly to the financial statements, is four times more than the stock price. But I believe it may get “cheaper” soon.

somebody collecting before budget tmr. Is there any monorail related projects to be announced?

spoke to some Chinese bankers last weekend. CSL is indeed a big time player in China, with numerous awards. Management is crappy but still a viable business, ripe for a takeover....

breakthrough.....

I still remember the battle that was stage to protect the price at 0.195 & 0.20. Even if one quarter is red, the company can still bounce back. Let's Run on faith for a while. Have sold half my holdings before at 0.235. Will keep the rest for long term dividend play. Will buy more at 0.20.....

let's buy out all the pretenders & speculators and the real investors soldier along. Sometimes we just should have a little faith...

CSL is on a crossroad now, more realistic trading pattern, with some retail activity. If you have access cash, now is just a long term dividend play, until next bull run..

Next Earnings Announcement - 11/19/2013 .Till then or new CEO in limbo

Stock Manipulators or syndicates

perhaps trading CSL has finally real rather than SM

The CEO is not the one that is selling, it is the chairman CF & his son angus of lead champion is doing all the selling.

one thing for sure 3-6 months from now, we all will be looking back and either reflecting on we should have or thank our lucky stars and staying out this damanations

or even the cash pile has disappeared and blame a dead guy...

54 and dead. If you believe in conspiracy, maybe he stumbled on some secrets, he not supposed to know.

JIANG DANPING - demise - dead? or ....

To rock CSL and the management, just ask about the 20% dividend pay-out policy indicated in the IPO declarations, To date the pay-out is only about 15%. According to the edge they pay out more interest on loans than interest gained from the 1 billion cash deposits

have been collecting slowly on scomi & Scomien, let's hope both fly soon

Extract from the edge...


CSL’s shares are currently trading at just one time earnings and one-quarter of its net cash value per share. Put in another way, imagine paying 25 sen for a one ringgit note!


Its stock price has fallen from a 52-week high of RM1.13 to just 22.5 sen and one-fifth of its IPO price of 95 sen back in February 2012. By comparison, its book value per share is RM1.18 sen and net cash value per share is 86 sen, as at June 2013.




CSL’s past financials show strong earnings and balance sheet strength.




In 2012, the company reported net profit of just under RM247 million, with EPS of 20.8 sen. Results for the first half of 2013 suggest a similar annualised performance, implying a full year EPS of around 20 sen – near its current stock price.




Despite these seemingly attractive valuations and strong fundamentals, the company’s major controlling shareholder, Lead Champion Ltd has been paring its stake aggressively, a move which does not send a positive signal to investors.




Is something amiss? Is the massive selling by insiders a precursor to something negative? Or is CSL shaping out to be the market’s “cheapest” stock right now?

during the AGM, the CEO mentioned also that they are entitled to claim for delays in Mumbai. So might turn around, and perhaps time to re -look into Scomi engineering.

Thanks for your input, worth collecting now,

howdy Sir Loh? Should we stock up as well? Share your thoughts.....

someone collecting scomi engineering. any good news?

CSL recycling buyback news on bursa today

17/09/2013
Date of buy back to 18/09/2013
Currency Malaysian Ringgit (MYR)
Total number of shares purchased (units) 9,000,000
Minimum price paid for each share purchased ($$) 0.205
Maximum price paid for each share purchased ($$) 0.21

going to take profit as well, 500,000 bought at 0.20, going to sell between -.235 & 24

someone is preventing from the price from going higher

corrections - 1 million share buyback at 0.215-0.21

1 million share buyback at 0.205-0.21

Is scomi at risk of losing the Chennai monorail project? Gammon leading bid...

have parked to buy 1 mullion shares at 0.195. Bring it on CF & ANGUS

I am sure among all us we have, some clot to demand new mgmt. I have 1 million shares now.

yeah, getting my broker to increase my limit by another 150k

got 510,000 shares at RM102,000.00. Bring it on CF & Angus, how the twist song, how low can you go.....got my war chest ready

another all time low beacons...

CF share holdings down to 27%, sold as low as 0.20

equinas to invest in MEGB?

if one were to analyse, it is doubtful there is any other counter in bursa that fits, the performance of CSL. Profitable since listed, decent dividend, only explanations mgmt - kaput....

took a gamble today, sold all at 0.215 and bought back at 0.21. enough to get the new iphone

at the very least 1.6 c payout was on time...

Made some pocket money today, sold all 0.42 and bought it back at 0.415.

no need to make police report, just a few share holders march down to their office in bangsar and speak to Chin, the local accountant and demand to inspect their books and cash balance/statements.

Educations Supposed to be be a growing business, but in this case cost mgmt was bad and the former CEO was way overpaid

historical low price, owners must be dumping big time

somebody collecting big time at 0.355

scomi holding strong at 0.355

piped dream I imagine

CSL has been selling peliken at 0.35-0.37, today at 0.50. Buy much higher, good business CF......

GST minimal impact on century, most of their install base is in government with their SAGA accounting system. Furthermore the Government just signed to update their accounting system to accrual accounting from cash accounting, this GFMAS project is with SAP not century, hence the sell down by the directors