YaSheng Group (HERB)

[HighYield1]

Herb really looks cheap, but can we trust the numbers? What makes me sceptical is that reported sales and cost of sales increased by exactly the same percentage for all the different subsidiaries. Surely, that can't be the case?

One could argue, that they are sloppy in their quarterly reporting (10Q) and divide the growth in total sales and cost of sales with the same percentage to the different subs. However, the same thing is true in the annual report (10K), where the numbers have been audited.

To me SIAF is a more safe bet.All the same, I will probably buy a small position in Herb and hope for a rally.