ZPI SG (Review of 3Q2004 results released on 3 Nov.)
- Revenue in 9 months [225 mil RMB] is already 15% more than full revenue in FY2003 [195 mil RMB];
- Net profit margin of 28%;
- EPS (9 months in 04) = 0.27 RMB;
- Two new products - Tea harvestor and perforator introduced;
- Directors confident that demand will be maintained in the next 12 months;
- New production facility will be fully operational at end 1Q2005.
[5 Nov close: S$0.23]
The full year
EPS in 2003 is 0.152 RMB while 9 months
EPS in 2004 has already exceeded it [0.27 RMB]. Therefore, using present price of S$0.23, it translates to an P/E of only about 4.25!!! Now, you tell me whether ZPI is a steal?