They are making money (from operations) unlike one of their peers in Shenzhen which is valued 175x higher.
It's hard to say how much. Last year (2015) there was a one-time write-off resulting in a loss of something like $24/share. LOL. And last quarter they had to write off some inventory. Still, I think they are making close to $1/quarter from operations. For this year (2016) I'm targeting EPS $2.50 but like I said, it can fluctuate a lot.
This story is about receivables, how much they can collect of that $107M and whether they will pay a dividend. Credit terms have been extended unofficially. I don't think they want to, but they may not have much choice. The sector is going through some inventory problems as growth came down from 10% to 4% with too many suppliers.
No debt though. No bank loans. So it's all free cash flow going forward. Once they collect the money. Market cap is only $6M. A $1 dividend would take the stock to 10 bucks. It's only $3M (with 3M shares outstanding) they would have to pay.
Longer term, the company is pretty well managed I think. And pretty well positioned to take advantage of opportunities. But we want to see that dividend.
The only risk I see is some freakish event like an auditor resignation or whatever. Which is not uncommon in this sector. Which is what I warned them about. So they better get a move on.
Alternatively, someone could make a hostile bid for the company for $18M (or $6/share). Which I warned them about also.
