This share has started to rise rapidly after the trading update which was very encouraging. The company provides batteries for mobiles etc and alternative power supplies. floated at 135p-should be a good investment with results due on April 18th.

Debts debts debts...........

Rising debts and working cap.

A one off "Olypmic year" to boost 2008, and RMB strength to boost earnings in sterling terms.

Its getting ramped big time.............be careful, when the short terms start to sell, watch this fall back very fast, as its illiquid.

One wonders what your agenda is Proshorterleans - for someone so negative on this share

Why don't you post on boards of shares you fancy ?

Its a share that is highly illiquid, its well into debt, rising debt, rising working cap, its not cash generative from operations - and some people are ramping it like mad cause they got trapped in at over 200p levels.

This is the kind of illiquid dross you avoid in a bear market, so I am merely pointing this out, people can make up their own minds.

I think most will - personally have invested as this company is in a rapidly expanding market, and has contractual relationships with all of the major players present.

If you think they're bear signs then god help you when you look at the banks balance sheets !

Joe Say, its only on the "recommended supplier list".

Which is a list of many companies that can be used for supply. This is a major difference to what some people try to portray.

CHNS is, well, ever increasing their debt levels, and cash flow negative from operations. They will get hit in 2009 imv with the strengthening Yuan on their exports, and their 2008 figures, whilst good, were only, imv, boosted up by Chinese Telecoms spending in the rush before the Olympics.

All in all, its very highly illiquid, and when you try to buy the price shoots up, when you try to sell the price collapses fast.

If thats a good "investment", well.........say no more.

From the last Annual Report (which excludes developments since - selected snippets only)

Key customers

Back up battery business: China Mobile; China Unicom; China
Netcom; China Telecom; China Tietong; and India Reliance.

PTB business: Beijing Xinri Electric Vehicle Co. Ltd. ("Beijing
Xinri"); Tianjin Taimei Electric Vehicle Co. Ltd. ("Tianjin Taimei");
Tianjin Taifeng Xiaoniao Electric Vehicle Co. Ltd. ("Tianjin
Taifeng"); Jiangsu Yadea Science and Technology Development
Co. Ltd (Jiangsu Yadea).

China Shoto has become the largest back up lead acid battery
producer in China, and we intend to become the largest lead
acid battery producer in Asia.

Last results : http://fool.uk-wire.com/cgi-bin/articles/200809171359336557D.html

Notice :

Net cash generated from operations is in brackets (Negative) - they are therefore cash flow negative from operations.

Cash generated from/(used in) operations (3,261)


Also look at :

"Bank borrowings" and "Trade and other payables"

Rising upwards.........

Proshorter - you can read accounts so lets be honest about them.

Net cash down 4,412 because

div paid 1,050
int paid 1,106
property bought 1,004
short term investment bought 2,832

Not surprising really - as I think you know, so why distort ?

Errr.... trying looking at "NET CASH GENERATED (USED IN) OPERATIONS"

This is the line that corresponds to business performance.

There are other lines which deal with other items, but the one I look at is the operations one, which shows if they are making money.....or are making paper profits and their cash is getting used up generating the revenues (eg, cash flow negative from operations).

Great to see CHNS taking off prior to results - only two or three weeks to go now.

Despite the surge it's still on a P/E of barely 3, with a 5p divi too, plus almost assured growth prospects for a number of years to come as I've posted before.

Nice article here from T.M.F - the title says it all :o))

Good mentions for my Asian faves GNG and CHNS (doesn't mention RCG, but you can't win 'em all!):

http://www.fool.co.uk/news/investing/company-comment/2009/03/24/stocks-so-cheap-theyre-nearly-giving-em-away.aspx

"Stocks So Cheap They're Nearly Giving 'em Away
By Steve Scott

Published in Company Comment on 24 March 2009

"China Shoto (LSE: CHNS) looks like another successful and growing business. The Company manufactures and supplies batteries, mainly to the Chinese market. Its recent trading statement revealed that profits in 2008 will be ahead of market expectations and 50% higher than in 2007. There is some bank debt although it looks comfortably manageable at only 23% of the value of total tangible assets. So why does the market value China Shoto at only 2.9 times 2008 earnings, especially when there is a forecast dividend yield of 4.3% on offer?

It's not alone amongst Chinese based companies in that respect. Fast growing and debt free software provider Geong International (LSE: GNG) may be valued at a more realistic 5.2 times expected current year earnings, however this would fall to only 3.9 times earnings if they meet next year's forecast by broker, Seymour Pierce.

Clearly investors are very sceptical about the sustainability and quality of earnings from Chinese companies. That's not helped by high profile disappointments such as Bodisen Biotech (LSE: BODI). But if the market is wrong, then there is clearly huge upside in these shares."

The price continues to advance, now up to 155p. Still only on a likely historic P/E of 3.7 or maybe less based on the forecast 41.5p EPS for 2008.

News dated today - CHNS' major customer in India, Reliance Comms is stepping on the gas for its expansion plans. It's spending around 120m in one state alone (Karnataka) according to this article!

The Chinese and Indian telecom booms appear so far to be unaffected by and independent of the global downturn - the respective governments obviously see it as extremely important:

http://www.business-standard.com/india/news/reliance-aircel-idea-to-slug-it-outrs-3000-cr/353436/

"While economic recession may have bitten new investments hard, the telecom sector looks set to witness a flurry of activity as it expands into hitherto uncharted territory. Three GSM mobile services providers are hitting the ground running in their foray into Karnataka. These companies are looking to pump in close to Rs 3,000 crore to establish their presence in the Karnataka market, presently growing at a blistering pace.

Reliance Communications, Aircel and Idea from the Aditya Birla Group are set to take on established players Airtel, Vodafone and BSNL in a market which grew at 60 per cent last year with a total subscriber base of 21 million. Bharti Airtel currently leads the pack with close to 10 million subscribers in Karnataka.

However, further transformation lies ahead for the market with Reliance Communication rolling up its sleeves to go all out in the state. Reliance is set to invest around Rs 800 crore to establish its state-wide network. The company already has a strong footprint in the CDMA segment in Karnataka with around 4 million subscribers; and is set to replicate its coverage with the GSM platform as well, being the only operator to offer both services.

According to Reliance Communications, Karnataka is part of its largest launch worldwide the Reliance network covers over 2,000 towns and 18,000 villages in India. With the launch of its enhanced GSM service, Reliance customers will now be able to use a range of over 250 handsets and devices. Reliance customers can now roam on more networks globally in over 200 countries offering a wider choice to customers in India, a source in the company noted.

The company, with a customer base of over 60 million, including over 1.7 million individual overseas retail customers, ranks among the Top 10 Telecom companies in the world by number of customers in a single country."

has anyone lost bulletin boaards for A D V F N and the page loads to USA

Here's Seymour Pierce's new comment from last week.

Note that the results are confirmed for 28th April - one week's time. Given continued low raw material prices (though lthe price of lead has increased a little recently), continued demand for CHNS' products and continued beneficial currency movements compared to last year the outlook should be rosy.

At 155p the historic P/E is now 3.7 - even a 50% share price rise would see a P/E of just 5.5. And it's likely imho that the 41.5p EPS forecast will be beaten anyway:

"China Shoto 3,5 (BUY) - Results preview
CHNS.L (142.5p) Market cap: 33m

China Shoto reports its FY 2008 earnings on 28 April. We expect the company to report PBT of 10.5m on revenue of 170m. This represents an uplift of 50% and 58% respectively. The company is a major beneficiary of cellular telecoms infrastructure spend. We believe the market will concentrate on the outlook for 2009 and 2010 in the context of the growth estimates for China and India. We note that Chinese first quarter GDP data is due out today. Growth of 6-7% is expected. While this is down on our December 2008 estimate of 8%, an above positive 5% number is exceptional relative to other global economies. Against this background we think China Shoto is well-positioned. China Shoto has a modest export exposure (less than 10% of sales) to India. We expect the company will update the market on trading in that territory on 28 April.

Shares in China Shoto have risen by 39% so far this year. Coincidentally, the Shanghai Composite index has risen by the same amount. On our December 2008 forecasts, the shares are trading at a PE multiple of just 3.5. We expect forthcoming results to prompt a re-rating."

CHNS issued terrific forecast-beating 2008 results today - the results were actually spot on 2009's forecasts as well:

http://www.investegate.co.uk/Article.aspx?id=200904280700142...

They made 43.45p EPS compared to 41.5p as forecast, though this forecast had itself been raised 30% from around 31p only at the start of 2009 due to a "significantly ahead" trading statement.

At the current 180p they are now on a historic P/E of just 4.2.

Equally importantly, against a 42m m/cap they now have 22m of net cash, against 11m net borrowings last year. Their net cash flows from operating activities in 2008 were 38.57 million, equivalent to 383% of net profit!

Net creditors/debtors have increased greatly to 25m, so there may have been a little year end massaging going on, but this is still an extremely impressive performance.

CHNS are now "China's largest producer of back up batteries".

And it "intends to, ultimately, become a worldwide green energy solution provider. To that end, a new type of green energy storage product with high technology content is being developed.'"

CHNS effectively has its own research institute. It's already producing high-end lithium-ion batteries as well as the traditional lead-acid batteries, but it's also producing storage for wind power and solar power. I suspect the new storage solution is to do with electric cars (since CHNS already produces for electric bicycles), but I could be wrong.

I have great hopes that CHNS will continue to do well given its bullish domestic and global prospects.

The house (and only!) broker forecast has been increased today as follows:

- this year : 47p EPS (up from 43.5p)
- next year : 50.4p EPS

The 2008 forecasts proved far too cautious, and I believe this year's will be proven to be cautious too.

This year CHNS will get a full year's benefit rather than just a few months of:

- yuan currency appreciation against the pound
- lower raw materials prices
- and lower interest rate charges

At the current 180p, 47p EPS represents a current year P/E of just 3.7.

It's worth noting that net cash at 22m (including short-term investments) represents more than half the 41m m/cap.

And that tangible net assets represent over 50m....

One day the market will wake up to this share.

biggish spread; no volume; no liquidity
any other bright ideas as to why one should buy?

Er...try post 118. Quite apart from the 250k of shares traded today. Enough for most private investor tastes I'd have thought. Not a bad m/cap at 41m now too.

Certainly much better than the 95p share price not so long ago at which price cynic was still living up to his name :o)) Shame he didn't pick some shares up at that time.

i make no apologies about having a very jaundiced view of chinese companies that are then floated onto the gullible occidental markets.

You are I presume having a laff, aren't you.

Any cursory glance at the figures should tempt even the most cynical investor

The share price is now up to 195p - this for a company which:

- made 43p EPS last year
- is conservatively forecast to make 47p EPS this year
- has 22m of net cash against a 46m m/cap
- pays a 5p dividend
- and at a 46m m/cap is valued at less than its tangible net assets

In addition:

- SCSW magazine is out tomorrow. Having backed CHNS in the past, hopefully this issue should have positive coverage of the recent results for its readership to ponder this weekend

- and next Tuesday is the AGM, when we should get a trading update RNS which by all accounts should be nicely positive given all the good news about Chinese and Indian telecoms, power industry and railway infrastructure growth and stimuli, as well as growth in the wind power, solar power and electric vehicle sectors.