Sino Agro Food Inc (fka SIAF)

[ValueInvestor01]

It is not the cost of assets. SIAF is using the cost method. They used an an appraisal firm for this. The appraisal firm determined the value of AF1 based on its history of profitability. They can't use that for AF4 because it doesn't have a history of profitability. So they used the cost (of construction) here. They also valued the license rights etc. The total of which is $340M as of Q3/2016 for TRW.

I just used that word so my point would make more sense to you since you were the one who used it first. But don't worry, I'll let you value the company whatever you want. I don't care anymore.

TRW booked a profit of $32M in 2017. It is valued at $340M (100M shares x $3.40). That gives you a P/E of 10.6.

Look up the average P/E on any exchange.

TRW is not your ordinary company. It will grow much faster than the average company. Which should give us a P/E close to 30 in Hong Kong. It could be much higher even.

A P/E of 10 does not reflect TRW's fundamentals or growth expectations. Therefore I'm not misleading anyone. Neither is the company when they book the assets at cost.