Posted by gick891214 > 2015-06-14 13:18 | Report Abuse

nice explanation Ezra.... looking forward the future of this company

Posted by pingdan > 2015-06-14 14:36 | Report Abuse

Not to pour cold water on you. See xinquan, another china company. PE only less than 2. Why still no people invest? Because investor have lose confident on china company. The only way to increase confident for investor is to increase the dividend payout. But is the company willing to do so? Or the company afford to do so? This create the investor question why they dun wan increase despite their high profit and high cash. Investor have no confident in the amount shown in balance sheet and profit and loss. So why investor will risk their hard earn money on the share that have high risk. Just my perception

Posted by craptree > 2015-06-14 17:46 | Report Abuse

their auditor is top 5.... compared to others like CSL, xinguan, CAP.....

hope their standard is as high as top 4 audit firm.... but what the heck.... our KPMG and Deloitte has their equal share of problem after auditing 1MDB.... so where is the public confidence in Audit????

Posted by Chinaboleh > 2015-06-14 20:42 | Report Abuse

Xinghe is different. Xinghe is cheapest stock in Bursa to give dividend. If follow their IPO there is 15% dividend policy for coming 3 years. At 7.5sen still very cheap compare to local stocks eg Frontkn which give 0 dividend.

Posted by Chinaboleh > 2015-06-14 20:47 | Report Abuse

Vsolar(most active stocks) is loss making yet more than double Xinghe price. Vsolar likely to have right issue than ever give dividend yet local punters still chase.

Posted by bukithot > 2015-06-17 11:28 | Report Abuse

Just my perception TOO

pingdan Not to pour cold water on you. See xinquan, another china company. PE only less than 2. Why still no people invest? Because investor have lose confident on china company. The only way to increase confident for investor is to increase the dividend payout. But is the company willing to do so? Or the company afford to do so? This create the investor question why they dun wan increase despite their high profit and high cash. Investor have no confident in the amount shown in balance sheet and profit and loss. So why investor will risk their hard earn money on the share that have high risk. Just my perception
14/06/2015 14:36

Posted by bukithot > 2015-06-17 11:29 | Report Abuse

Top auditor also so what?
Auditor does not mean can detect fraud lo.
If company want to manipulate, auditor almost cannot detect, unless got special super audit lo.

Posted by bukithot > 2015-06-17 11:30 | Report Abuse

Auditor can check the reasonableness of the accounts presented to them only, to certain level.
Being audited does not mean free from fraud. Hahaha.

Posted by bukithot > 2015-06-17 11:32 | Report Abuse

The only way to regain confidence is dividend windfall to shareholders, to proof that: Yes, we truly have such CASH in the company. But would they do it?
TheEdge recent report also says Chinese Company needs a lot of cash coz their biz in china are always in cash term. Pay in cash. What a good reason to keep a lot of 'cash' in the company.
:)

Posted by Chinaboleh > 2015-06-17 11:41 | Report Abuse

bukithot, if Xinghe, Xinquan are not China companies, will they subject to so many questions for not giving good dividend? As I know LCTH, Frontkn are example cash rich local stocks which never pay dividend yet local punters chase them.

Posted by Chinaboleh > 2015-06-17 11:43 | Report Abuse

I am quoting LCTH(45.5sen) and Frontkn(23.5 sen) because they are more than 6X and 3X Xinghe share price yet pay 0 dividend. At least Xinghe is better to pay 0.2sen dividend albeit small at only 7sen.

Posted by chonghai > 2015-06-17 23:50 | Report Abuse

Don't care about all number when China stock is concerned. Just stay away.

Posted by Ezra > 2015-06-22 01:51 | Report Abuse

The following is an article I wrote in response to comments by Coldrisks entitled "It’s time we judged Xinghe on its merits – and not tar it with a Chinese brush" http://klse.i3investor.com/blogs/Xingheanalysis/78527.jsp

Posted by Fat Cat Tim Buddy > 2015-06-22 01:56 | Report Abuse

summary : xinghe channel LT TP RM 13.88

Posted by Ezra > 2015-06-22 02:51 | Report Abuse

Thanks pingdan for raising an interesting point on the dividend payout.

Incidentally, Xinghe has a policy of paying dividends within reason although not in fantastic amounts that could jeopardize its net tangible assets. As a company focused on growth, I don't expect them to overpay as that would be akin to killing the goose that lays the golden eggs.

Should they pay more in order to prove they're cash rich? Well, this is addressed in my article entitled "The best run companies do not pay a single dividend". Have fun reading thru. http://klse.i3investor.com/blogs/princeanpauperstocks/78715.jsp