[caption id="attachment_3174" align="alignright" width="150" caption="Photo by striatic"][/caption]
...that will support the more than doubling of its stock price since it was added to my stock pick list
Sinomem reported a good set of Q2-2009 results last night. Revenue was up 5% at S$32.7mn while net profit rose 43% to S$5.7mn. Six month net profit rose 21% to S$10.7mn. The company is comfortably ontrack to hit my expected net earnings of about S$20mn in 2009 which would be a significant improvement over the S$0.7mn loss in 2008 and some way off its S$70mn profit in 2007.
The huge discount to NAV when I first recommended the stock has now disappeared with the shares having risen more than 100% and now close to par with its NAV of S$0.49. Forward PERs are about 10 times which is reasonable and not expensive. I still like the business and expect earnings to attain a new base in 2010 with its BOO projects come onstream. Read more...