Hongguo delisting offer

I did some quick sum on the hongguo de-listing offer.

The cash per share is roughly 0.13. For the past 9 months, the EPS is 13.1 RMB cts. So, this year, the company might be able to earn 16 RMB cts which is 3.29 SGD cts. With the offer price of 0.439, the offer PE will be 13.3 which is a good offer. Good in the sense that for past two years, the company has been trading at lower PE.

In the Q3 result, profit margin was down to 35.2% reflecting the tough business environment. This might be a good offer depends on your entry price. Most likely they will seek some professional advise for the shareholder.