Firm is a China based 'S' chip that manufactures metal stamping machines.The machines help manufacturers produce the frame of the train carriage (10% of sales in 1-2 year time), home appliances (34% of sales) and car chasis (32% sales).
Recently they had a good book order from a China state owned Rail company (CNR). Firm grew their profits on average of 14.8% annually and is currently at 9x PER. Management is stated to be confident of at least 40% rise in profits for 2011 as it doubled for 2010.
Whats interesting is that it is now branded as one of the "premiere" S chips that gives out large dividends (by S chip measures, latest yield is around 4%) and with a government infrastructure expansion, RMB150 billion per year investment in railroad for next few years and automobile boom supported a spin to its story. Bright world is likely to see some very strong interest in the coming months. It also helps the insiders own over 77%, making this firm a likely privatization candidate given its strategic position.
Do note the products are still not too differentiated which explains the price impact on sales in 2009.
Disclaimer: The author has a small position in this counter for experimental purposes.
Bright world Brightworld
Thursday, March 10, 2011
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1 comments:
Sounds like a great tech oriented company.
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