1068 YU RUN FOOD (A-)

Buying strategy: buy under $7.

actual PE for now:

if price = 7.2 and

06 profit = 5y (unlikely), actual PE = 16.4

06 profit = 6y, the actual PE = 13.6

06 profit = 7y, the actula PE = 12

Neff criteria: 55 + 0.005 / 22 = 2.54 < 2.6

(Earnings growth rate + Dividend %)/PE ratio
In the above formula, earnings growth refers to earnings estimated for the following year, expressed as percentage growth. Dividend yield is dividend expressed as a percentage of the stock price. Other things being equal, lower P/E ratio stocks will have higher value. Conversely, a higher P/E ratio stock may offer good value if it has a high earnings growth and dividend yield.

As a general rule, Neff tries to identify stocks that have a return ratio of two or more. If you don't find many stocks that fulfill this condition, you may use the formula to choose among the available ones.

Reasonable market cap = NCAV + 15 PE

06: 22y + 15 * (6y) = 112 y

07: 22y + 15 * (8.5 y) = 150 y

Financial position: very good

(Million)

Profit Equity ROE

06 estimate 600 2683 22%

06 interim 254 2383

05 345 2241 16%

04 160 655 25.8%

03 90 467 20.4%

02 52 233 23.5%

Durable profitability analysis:

06 Estimation: 254 + 306 = 600

07 840 (40% up)

08 1176 (40% up)

09 1200 (no up)