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Good end to the week. Will results be next week ? They are due in April, so anytime now.

If the market can carry this optimism into the results week, then that could be just the filip we need to take this to a new trading range

Nicely up today again. With what should be well over 40 pence of earnings and a very positive outlook this should and could soon be well north of 250p levels.

Its a steal at under 10 times earnings....and that is over 400p.

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Results 28th April.

From uk-analyst.com today :-

"Seymour Pierce issued a 'buy' note on China Shoto (CHNS), the batteries company, ahead of its full year results due to be released on 28th April 2009. The broker expects the company to report pre-tax profit of 10.5 million pounds on revenues of 170 million pounds representing a rise in each of 50% and 58% respectively. The company is a major beneficiary of the cellular infrastructure spend. The broker added: "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.

Lively today.

The Seymour buy note will have generated some interest, however there is more on the bones if look.

Firstly, CHNS is on a low PER, trading now at sub 4 times soon to be historic EPS.

That on its own means little in the current climate as many stocks are on low PER's however ;

Secondly, CHNS should be paying a cash dividend of circa 5p, and in these times when banks are giving nothing on savings accounts, a nice little yield on a stock makes a different.

Once again, a few low PER and dividend paying stocks about, however, the key here is that CHNS has a strong outlook, or so we hope. The on going "domestic stimulus" in China is designed to boost domestic demand, and help the domestic situation. Its not about "saving the world' its about saving China. This is were CHNS benefits as the telecom companies have put in place major expansion plans for 2009/10/11 and onwards.

This boosts the backup battery telecoms side for CHNS, and allows further growth for the next visible few years, ignoring their other electric bicycle, green energy and other sides of the business.

So you get a low PER, a cash dividend and strong growth outlook, and that is what makes CHNS special IMO, a good investment perhaps.

Time will tell.

Results due 28th April.

Fully agree proselenes, and appreciative of your newsflow.

I think you should add that it is not soley about the telecomms market, but that there are a whole host of others in which the company is involved, and which by the nature of what is happening to China now, is likely to provide golden opportunities.

Your point re:divvies should additionally comfort those with a fear in sending their money out east (rather than keeping it in a nice secure european bank like northern crock, hbos, or iceland.com !!!)

Seymour Pierce notes last week :

"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."

Up a good 4% on a market down day, cannot ask for more.

Well, including today only 3 trading days to go before results on 28th, and that should spark a rerating as people get in for the growth and also the cash dividend.

Nice moves again today.

And a strong finish to the week.

To focus the mind on the staggering demand for Battery Back Up systems just for Mobile Base Stations (ignoring all the other, and not insignificant stuff than CHNS do).

The demand between now and 2012 is just massive........

Some snippets below -


http://www.tdscdma-forum.org/en/weekly/49/

China Mobile to Construct 140,000 TD-SCDMA Base Stations in 3 Years

Sina Tech

On April 7, Huang Yuhong, Head of Wireless Technology Research Group from the Research Institution of China Mobile revealed that TD-SCDMA can cover 70% of the Chinese cities by end of 2009. China Mobile plans to raise this ratio to 100% with more than 160,000 base stations in all cities by 2011. In the 1st round of TD-SCDMA network construction, China Mobile built more than 10,000 base stations. Since the 2nd round construction of TD-SCDMA network, China Mobile has intended to deploy about 140,000 base stations from 2009 to 2011. .................

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http://news.xinhuanet.com/english/2009-04/17/content_11196469.htm

Chinese Vice Premier looks to domestic standard for 3G development

www.chinaview.cn 2009-04-17 05:22:58

...................By the end of this year, China Mobile is to invest 58.8 billion yuan (8.6 billion U.S. dollars) in building 60,000 new TD-SCDMA base stations covering 238, or 70 percent of, prefecture-level cities, according to the Ministry of Industry and Information Technology.


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http://www.telecommagazine.com/NewsGlobe/article.asp?HH_ID=AR_5159

China: a future for Internet but guidelines are necessary

3G offers opportunities for growth and multiplier effect

by Ek Heng, Asia-Pacific Correspondent

Thu. April 23, 2009

..........................China Unicom goes 3G
In another development, China’s third telco, China Unicom also unveiled plans to launch its 3G WCDMA services by end-April. It was reported to announce that it is looking to provide 3G services in the areas of data card, mobile music, mobile TV, mobile search and video calls. China Unicom has earlier announced it would built its 3G networks across 55 cities by first half 2009 to be followed by coverage to 282 cities by year-end.

Put this summary post on TMF.

http://boards.fool.co.uk/Message.asp?mid=11528229


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And the results are quite good indeed.


http://www.investegate.co.uk/Article.aspx?id=200904280700142508R

........

Highlights

Revenue increased by 70% to 183.08 million (2007: 107.50 million)

Net profit up 79% to 10.07 million (excluding minority interests) (2007: 5.62 million)

Net cash flows from operating activities were greatly improved to 38.57 million (2007: outflow 3.11 million)

Foreign sales revenue up 329% to 29.71 million (2007: 6.92 million)

Diluted earnings per share up 76% to 43.14p (2007: 24.45p)

Awarded 'China Environment Friendly Enterprise', the highest State Environmental Protection honour

An interim dividend of 1.5 pence per share paid; the Board recommends a final dividend for 2008 of 3.5 pence per share

Comment from Richard Gill over at "sharecrazy". Confirms what I have been posting about, which is the massive spend ahead by China Telecom, and the other major customers of CHNS, which will result in "huge" potential orders.

I notice in the results today "huge" is quoted to the potential ahead.




"Richard Gill

Re: China Shoto - Backup batteries and more [Re: Proselenes] #444647 - 28/04/09 01:11 PM

Very good results.

Just been to a presentation by the management. Key point for me was that cash flow has improved significantly and that major customer China Telecom has recently almost trebbled its capex spend for 2009-11 in wake of the move to 3G"

This comment from Investors Champion :

http://www.investorschampion.com/blog/entry/china-shoto-amazing-turnaround-in-cash-fortunes

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On another note the earnings forecast for 2009 has been upgraded to 47p (from 43p), which puts CHNS on a PER of less than times 4 and with NTAV of over 50M GBP ( for a market cap of presently circa 41m GBP), and of course, its paying a cash dividend.

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