Ernest Lim's investing blog

Unique insights into SGX small caps

Month: January 2013

Eratat Lifestyle – to ride on China’s domestic consumption theme?

el15

China is slowly changing its reliance on export to more of a domestic consumption focus. One such company which may be able to ride on this domestic consumption story is Eratat Lifestyle. (“Eratat”) Description of Eratat Eratat started as a sports shoe / sportswear company and moved into the design and distribution of lifestyle fashion apparel under its proprietary brand “ERATAT” (“ 鳄莱特”) about 3-4 years ago. Please refer to their company website http://www.eratatgroup.com/v2/ for more information. Investment merits 1.     Near term results likely to be better without once off items Eratat recognised a once off sales incentive in 4QFY11 of RMB51.7m and renovation subsidy RMB41.8m in 1HFY12. Without these […]

China Animal – Delisting or no delisting?

el15

On 26 Sep, before market opened, China Animal (“CAL”) announced that it has entered into a conditional Subscription Agreement with two new investors, Themes and SEB Listed PE Fund for subscription of Subscription Shares and Warrants. If the conditions to the Subscription are satisfied, this would raise an aggregate amount of S$47.7m to be primarily used to partly fund the Possible Delisting Offer. More than 3 months have passed (and pertaining to the delisting), CAL had updated investors that “the arranging of third-party financing for the Possible Delisting and other associated workstreams are now at an advanced stage and are ongoing as at the date of this announcement” […]

China ETFs – back in vogue with China market rally?

el15

China market, as represented by Shanghai Composite Index (“SHCOMP”) has appreciated about 15.8% from 1,960 on 3 Dec to 2,269 on 31 Dec. Since Nov, I have been very interested in the China market but unfortunately, due to time constraints, I was not able to research on this. Some of my clients have asked me which ETFs better track the SHCOMP and / or the Shanghai 50 A share (“SSE50”) Indices as there are too many ETFs available. Below is my personal compilation of some of the ETFs and their correlations with the SHCOMP and Shanghai 50 A share (“SSE50”) […]