China Shoto - a mistake with our numbers but…
One of our readers has kindly pointed out a mistake we made last week in our commentary on China Shoto. However, our overall prognosis on the business as a whole remains...
Unfortunately we used the 2008 net profit of £10.3m as our comparative instead of the 2009 net profit of £23.5m. Estimated net profit for the year ended 31st December will therefore be c£16.45m, resulting in eps of approx 69.4p in line with revised broker estimates of 70p. At the current share price of 278p, this puts CHNS on a historic (2010 financial year) PER of just 3.97x. We appreciate that on historic multiples this looks dirt cheap, however, the prior year was boosted by government stimulus and investors in CHNS should be looking to future consistent growth in earnings following…