Given the recent bullish run of its counter and also the upcoming FY2011 result release in the next 2 months, I thought it will be good to cover Boer Power again, so as to provide a better understanding of its business scope and determine whether there are any new changes to its valuation. Investment Thesis for Boer Power (1685.HK):

• Good micro aspect: Strong business nature with sustainable high margins & top quality customers
• Favourable macro aspect: Industry favoured by Chinese government (12th 5 year plan)
• At last done price of HK$2.83, 43% of market cap is pure net cash & 5.28x P/E ex. net cash
• Poor 1H FY2011 results believed to be temporary

Overview of Boer Power’s Business: Boer Power is a HK-listed company (listed on Oct 2010) which mainly engages in the building of system for electrical distribution. Its business can be categorised into 4 segments: ......