Eratat Lifestyle[1] reported a sterling set of 1HFY11 results for the period ended 30 June 2011. 1HFY11 sales and net profit surged 25% and 94% respectively to RMB523m and RMB90m. Gross margins have held steady above 30%, in line with management guidance. However, its share price only showed a positive one day response to the results before resuming its precipitous downward decline. Year to date (“ytd”), Eratat share price has declined 44%. To put this in perspective, STI and FTSE China Index’s ytd performance fell about 14% and 27% respectively. Besides the lackluster equity markets and the weak market sentiment […]