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Ever-Glory International Group, Inc. Message Board

  • jackdav78 jackdav78 Oct 3, 2013 11:37 AM Flag

    EVK PE ratio starts its correction

    with this continued move upwards, EVK starts to bring its PE ratio to a more consistent one.

    PE ratio is reflecting the confidence in the company and it will increase overtime due to the following reasons:

    - The company starts to be visible (tangible asssets : physical shops expanding everywhere in the country)
    - The company is beginning to be recognized on the chinese domestic market (most of chinese on line shops are now selling commonly la go go clothes)
    - The overall revenue begins to be significant (more than 300 M$ a year)

    As consequence I think that the PE ratio is just starting its increase to be aligned with the average PEs found on the market (between ten and twenty on chinese reverse merger that are judged "trustable"

    This is a first aspect of the EVK valuation, the second one being the EPS that is now constantly increasing due to the fact that the proportion of retail business (more margin than the wholesale business) in the global revenue is increasing as well as the fact that the retail business revenue itself is also increasing....

    These two factors will make EVK stock valuation increase for a long time...that is just the beginning....

    My 2 cents

    Sentiment: Strong Buy

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    • Your comment is right, I was at one of its factories, and saw the excellent quality of its garments, walked several negosios and the owners are very happy with the sales.
      A great future awaits this small tarball shareholders company, my target is 15 dollars per share.

      • 2 Replies to pablogalle
      • Hi Pablo,

        I didn't want to put a timeframe on it....since it is very dificult to predict...however I agree that the stock price direction is very clear....and to me the following aspects are key :

        - PE will increase with company, revenue size and recognition (between 10 and 20)
        - EPS will increase with margin increase and retail business proportion increase (2$ per share is largely achievable within 2 years)
        - Floating shares very limited in number resulting in impressive increases

        If you do your maths ....for me it is more than 20$ per share within 2 years from now

        Several friends that travel to China have visited shops in Shenzen and Shangai...and it looks very promising....

        Keep the faith :)

        My 2 cents

        Sentiment: Strong Buy

      • Target $15 ?? Sure thing Pablo. Put a time frame on that leap

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