Previous y/e trading statement >50p23 Jan 2017 21:26
Haike Chemical (HAIK)
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Haik, Fast growing Chinese Stock, forward pe 5 (perhaps lower)....
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Recruiter 30 May '07 - 13:18 0 1
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Fundamental Data
Sector OIL & GAS PRODUCERS
Mkt.Sector AIM Mkt.Segment AIM
Turnover 76.03 Profit 0.60
Norm EPS 0.01 PE Ratio 2,687
Market cap 13.33 NMS -
News
23/01/2017 08:00 UKREG HaiKe Chemical Group Ltd. Trading Statement
http://www.advfn.com/p.php?pid=cmcharts&cb=1190625928&symbol=NYM%5ECL%5CX07&redir=1&period=9&freq=6
HaiKe Chemical Group Ltd.
September 2010
HaiKe Chemical Group Ltd.
This was said in the latest statement, please read & take great care when investing in this company:
We believe that the Company has sufficient funds to meet foreseeable business
requirements as long as the Chinese Banks continue to support HaiKe. HaiKe has enjoyed, and continues to enjoy, good relationships with local banks which are supportive of the Company's business. However, if the Group continues to incur further losses or loses banking support, the Group may have liquidity risks.
Operational Review
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phil196923 Jan '17 - 19:27 - 10172 of 10174 0 0 Edit
A bit of research on hxxp://www.haikechemical.com/shareholder-information shows only 56% of shares not publicly available.
81% is held by Hi-Tech Chemical Investment Ltd, employees and institutions.
Realistically only 19% of free float!!
Hi-Tech Chemical Investment Ltd has Mr. Xiaohong Yang as its chairman and major shareholder. He is also Haikes chairman.
Some Chinese companies on AIM are considered very high risk and trade at a huge discount to its non Chinese peers.
Reading back through the history of Haike and its history on AIM. This profitable, low debt business shouldn't be trading at such a huge discount and todays trading update has brought this to a lot of investors attention.
Current p/e only 6, not unusual for Chinese AIM stocks but Haike the more reputable can command p/e of 8-10. Giving a further 30-60% upside. (45p-55p)
Looking at finals for 2015 released May 2016 - "No dividend is proposed for this year. When the Group's profitability has further improved, the Board will consider the resumption of dividend payments."
The groups profits have improved drastically and debt substantially reduced. Given 55% of shares are held buy Hi-Tech Chem, it wouldn't surprise me if there is pressure to reinstate the dividend. An AIM stock with pe below 10 considering to reinstate dividend payments. This would also put a rocket under the SP.
Also compar