What part of the MaxSoar valuation estimates have to be revised now that the acquisition has closed?
Looks to me like they have to use $5.41 as the intrinsic value with a DCF model (which they have already done in two parts - $3.69 for Gujiao plus Taiyuan and $1.72 for Huajie).
The other method of valuation - estimating valuation proportional to the current TTM valuation of comparable chinese/asian stocks - MaxSoar made it clear that those models were in fact based only on PRIOR earnings (TTM), and did not include Huajie by definition.
So TTM P/E, TTM price/sales, and price per book of LPH will be different after the earnings from Huajie hit the bottom line for 4 quarters. Therefore, I would assume that the three estimates of target share price for LPH derived from the lowest priced comparable stock (Fortune Oil Plc) of $6.55, $5.87, and $3.82 will all go up.
The first two estimates ($6.55 based on P/E and $5.87 based on price/sales) should go up in proportion to EPS changes ($0.62 TTM currently versus $0.80 by next June and $1.00 by end of next year).
Those revised estimates, based on P/E and price/sales) by period ending next June and by end of next year will be: $8.45 and $7.57 for 6/30/13 and $10.57 and $9.47 by end of next year, respectively.
Holy cow, those values indicate LPH is undervalued by a factor of 6.