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Proselenes
Gold Contributor
Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 13-Mar-09 at 09:33 | IP Logged
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EPIC = CHNS
China Shoto, is an integrated technology-based international energy company primarily focusing on back up lead acid battery, whose products being applied in more than eighty countries. In these businesses, we have a strong edge and leading international market position. Shoto is the brand name of Shuangdeng Group for international market. The markets served range from telecommunications, electric infrastructures, railways, aviation, military applications, and civil use.
Web Site : http://www.chinashoto.cn/
Web Site : http://www.chinashoto.com/
Broker Forecasts (New upgraded in Feb 2009)
PTP 2008 = 10.5 million pounds
EPS 2008 = 41 pence
PTP2009 = 11.5 million pounds
EPS 2009 = 43.5 pence
Thread started 13th March 2009 @ 113p
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Proselenes
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Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 13-Mar-09 at 09:38 | IP Logged
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Having been (and its been quite rightly) bearish on this from over 200p levels down, I have been talking to some friends and have been talked into this one being bullish now.
It transpires they will be, or very close to, being cash flow positive this past year, owing to the fall in the price of lead amongst other things. They are forecast to be strongly cash flow positive in 2009, and this will be shown in the payment of a high cash dividend for the 2008 results (which are due next month).
They will be doing over 40p of EPS for last year, when the results come, and after being rightly sold down, it appears to be the time to no buy back into the story.
Their order book is strong for 2009 (I had feared not but it seems it is) and so there is no reason that are obvious now, given the info I have been told, not to be buying in as the PER is less than times 3.
All IMHO !! DYOR !!
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Proselenes
Gold Contributor
Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 14-Mar-09 at 11:32 | IP Logged
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This summary comment from broker Seymour Pierce earlier :
""Seymour Pierce reiterated its 'buy' stance for shares in for battery maker China shoto (CHNS) ahead of the company's 2008 results due to be released next month. It praised the resilient qualities of the business, noting that capital spending by the mobile operators is planned rather than discretionary. "More than 90% of China shoto’s revenue is sourced domestically. India is the sole overseas export market and accounts for just 10 million pounds of sales. Investors fearing a drop in China’s exports need not be concerned about China shoto," argued the broker. With the shares trading on a current multiple of just 2.6, the broker expects the publication of the firm's 2008 results to prompt a re-rating. China shoto shares moved 4p higher on the note to 115p."
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Proselenes
Gold Contributor
Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 15-Mar-09 at 09:17 | IP Logged
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The reason the company and the broker are confident of a strong order book is the ongoing expansion of the Chinese 3G network, and all the new base stations being installed. This gives CHNS a strong base revenue stream excluding their wind/solar/car/bicycle sides.
http://intech-group.com/?q=china-mobile-seek-bids-3g-work-ex pansion
http://www.newsgd.com/news/guangdong1/content/2009-03/03/con tent_4954339.htm
This article looks for US companies that will benefit from the 3G expansion in China.
http://seekingalpha.com/article/124031-which-u-s-companies-w ill-benefit-from-china-s-3g-expansion
However, there is one UK AIM listed company that will benefit, and they are China Shoto, with all the new backuo battery needs for the expansions planned and in progress in China. The government wants the rollout to continue, they want to spend money to create jobs and keep people employed, and so the outlook for CHNS looks very rosy, ignoring all the other stuff they do and just looking at the backup battery market for mobile base stations. Add in the bicycle, golf cart, car batteries, and then the wind/solar power side and well, the outlook does seem good.
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Proselenes
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Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 20-Mar-09 at 08:48 | IP Logged
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Wonderful news, potentially 40,000 base stations needing back up battery installations too.......
http://www.tradingmarkets.com/.site/news/Stock%20News/222593 9/
China Mobile Purchasing Equipment for Third-stage TD Net
Tue. March 17, 2009; Posted: 08:24 AM
Yesterday China Mobile officially kicked off wireless telecoms equipment procurement for its third-stage TD-SCDMA network by sending out the bidding documents to telecoms equipment makers such as Datang Mobile, ZTE, Ericsson, and Nokia Siemens.
This time China Mobile will procure about 40,000 wireless base stations for its TD wireless networks in more than 200 Chinese cities.
Since it got the third-stage project off the ground in January 2009, China Mobile so far has put an end to the initial exploration for installation of base stations in 31 provinces across the country.
China Mobile procured CNY 5.38 billion worth of wireless telecoms facilities for its TD networks in 28 Chinese cities, which included 23,000 base stations under the second-stage project. Based on that, China Mobile this time is expected to purchase CNY 8.6 billion worth of wireless equipment for the third-stage project.
Latest numbers from China Mobile show that it had built up TD wireless networks in ten major cities last year. Now it is extending the networks to another 28 cities under its second-stage project. And it is slated to kick off 3G services in these 38 cities this June.
An executive from China Mobile discloses that the TD networks so far have covered 95% of the first ten cities. And integration between China Mobile's 2G and 3G networks has been carrie.................................
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Proselenes
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Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 25-Mar-09 at 02:56 | IP Logged
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Still building strength, and results soon.
Should be at least a 5p cash divdend coming and its on a PER of less than times 3 (will be historic and also current year).
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Proselenes
Gold Contributor
Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 27-Mar-09 at 13:47 | IP Logged
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A reminder of what Seymour Pierce said earlier - and with results due April, and when people see the earnings growth, the strong outlook and the dividend (will be cash and maybe over 5p a share), for sure the potential for a significant re-rating is there.
"A summary of the recent Seymour Pierce note :
""Seymour Pierce reiterated its 'buy' stance for shares in for battery maker China shoto (CHNS) ahead of the company's 2008 results due to be released next month. It praised the resilient qualities of the business, noting that capital spending by the mobile operators is planned rather than discretionary. "More than 90% of China shoto’s revenue is sourced domestically. India is the sole overseas export market and accounts for just 10 million pounds of sales. Investors fearing a drop in China’s exports need not be concerned about China shoto," argued the broker. With the shares trading on a current multiple of just 2.6, the broker expects the publication of the firm's 2008 results to prompt a re-rating."
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Proselenes
Gold Contributor
Joined: 24-Aug-08
Location: New Zealand
Posts: 493
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| Posted: 29-Mar-09 at 03:47 | IP Logged
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Its new base stations galore in China presently, tens of thousands going to be installed in 2009 and 2010 and 2011 and more........
This means massive new demand for new back up batteries (a la CHNS) and also the repeat business of course of replacements when old later down the line.
Three stories from the past two weeks which gives an idea of the frenzy to install new systems in the coming years.
http://www.unstrung.com/document.asp?doc_id=174019
http://www.unstrung.com/document.asp?doc_id=173883
http://www.unstrung.com/document.asp?doc_id=173650
An exciting period of sustained growth for CHNS going forward one sees.
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Fillyaboots Forums : General Trading
Topic: China Shoto - Backup batteries and more
