Small investment : Foreland

Foreland fabrictech was sold down quite severely  after reporting good profits for FY2011.
This is probably because investors had either looked to take profits and also some might have expected better results.

At current price of 10c, I feel it's a good price to consider keeping some under your pillow. Thus, I loaded some lots at 9.9c

Some figures:
1) Net profit for 2011 stood at RMB 140 million (this was achieved without income from other alternative sources - eg gain on disposals etc)

2) Cash stands at RMB 228m with liabilities (both current and non current) at 84.5m. This works out to be 143.5m without even considering their trade receivables of 117m.

3) With the 143.5m cash (see above) and 528.7m shares, this works out to be approximately RMB 0.27 per share. This is about SGD 5.4c (assuming $1 = RMB 5). If we added in the trade receivables, we would get about SGD 9.9c (my vested price)

4) For those cautious about uncollectible receivables, FY2011 had shown a decrease in receivables turn around as the company has tighten credit control

5) As at end of 2011, the company had 0 borrowings which indicates minimum leveraging.

6) Lastly, the gross margin on their products have been increasing from 22.5% to 29%. The company had invested in new machinery in 2010 and thus are reaping the rewards of better productivity.

Thus, I'm gonna sit on this counter although is an S-chip. I was told a fellow forumer had quite a large investment interest in this as well.

Caveat Emptor! Please do your own research before you take my advise as I'm vested.