For consecutive years, it has increased bank borrowings to the tune of hundreds of millions to finance its accounts receivable. This could be due to its surge in sales. But I still think it is a big anomaly as it remains very cash-poor despite the business growth. This, which is hugely concerning, aside, the profit increase is quite interesting, especially if it is genuine (i.e. its accounts receivable are all collectible eventually)
Is the net income margin a bit low, just slightly above 1%? The bank borrowing has increased from 7Mil (since your first article) to 252Mil, should that be a concern?
As highlighted above, full of debts (1.1x debt/equity) and razor thin margin (1.x%). Unless its Amazon, but this CIHLG only selling edible oil & water tap. Don't believe the growth rate is sustainable.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
VenFx
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Posted by VenFx > 2017-07-06 12:26 | Report Abuse
Noted , icon888 bro .
Thx for the head up for CiHldg.