Hongguo's Fundamental & Intrinsic Value

Base on Q2, 2009 financial report:

• PE = 5.8
• Dividend Yield = 4.3%
• NAV = $0.3438
• Net Earning = 7.8% (12% in 2008)
• Current Ratio = 3.72
• ROA = 13.6% (Base on 2008 Full Year)
• ROE = 18.5% (base on 2008 Full Year)
• Cash Flow = S$46.3Million (103% increase with reference to 2008 Full Year)

 Stock Background 

• 3 years historal high = $1.46
• Current Price = $0.31 (only 21% of 3 years high)

 Intrinsic Value Calculation 

• EPS Annual Growth = 12% (from 2004A to 2009F)
• Discount Rate = 5%
• Intrinsic Value = $0.73 (58% Discount of Current Price to Intrinsic Value)