China HongXing - Fundamental & Intrinsic Value

Base on Q2, 2009 financial report:

PE = 7.1
Dividend Yield = 1.2%
NAV = $0.3359
Net Earning = 9.7% (15.5% in 2008)
Current Ratio = 25.02
ROA = 10.2% (Base on 2008 Full Year)
ROE = 11.6% (base on 2008 Full Year)
Cash Flow = S$520.7Million (33.4% increase with reference to 2008 Full Year)


Stock Background
3 years historal high = $1.42
Current Price = $0.225 (only 16% of 3 years high)


Intrinsic Value Calculation
EPS Annual Growth = 15% (from 2005A to 2008A)
Discount Rate = 5%
Intrinsic Value = $0.54 (58% Discount of Current Price to Intrinsic Value)