Replies to post #129964 on Sino Agro Food Inc (fka SIAF)

[ks1977]

$100 is only a P/B of 4. However, that isn't very likely to happen any time soon, and much of the book value don't generate much net profits anymore so my P/B-figure of 4 is misleading since - at the moment - the P/E (matched with the P/B of 4) would be very high.

The gem of SIAF at the moment is TRW (where SIAFs 36.6% ownership alone is worth more than the current market cap of SIAF). Even our share of net profits - with remodelling, refurnishing and non-optimal operations in AF4 - would defend a PPS way above the current market cap of SIAF. TS has offered some calculations of what the TRW-shares could ("should") be worth upon listing in HKSE (if they succeed) with the growth-story (i.e post TRW-loan and/or pre-IPO). That is potentially a very large chunk of that $100.

Another hidden gem is CA, but we've still haven't gotten any deals besides TRW so we might want to hold our breaths on that one.

With a good portion of luck (TRW-financing, improvement for SJAP etc) it isn't impossible that the current SIAF is worth 3 trillion by the end of 2021.

[RealDutch]

It's 3 billion, not 3 trillion. In Dutch it's called "miljard" and it's probably something similar in Swedish or Norwegian :-)

And it would actually be a normal valuation for any other company. Optimistically, if we assume EPS $2, then it's only a forward P/E of 50.