AR says $120m in projects for 2017. This wouldn't be unreasonable to think NPAT could be $15m
I think 85c is reasonably priced. Probably could be 40c being a Chinese company.
If it hits $15m it could be a $1.40 stock reasonably
My concern is currency risk, - although I believe the money for this company is in Australia? Which makes this VERY different from other Chinese companies
Also risk of timing- I can't quite follow, they get paid and pay their laborers, I was told they pay their laborers a tiny living allowance, enough to buy smokes and a beer, the bed and food is provided. The rest of the money is paid to their family back in China, and then when the job is completed and they get paid the large chunk, 80% of their earnings/ salary accumulated are paid to the family direct. This ensures the money isnt gambled or drunk away. This company relies on good accountant getting the cash flows timing right but is exposed to fraud risk that could wipe out the company
If it dips to 60s and 40s its a buy. At 85c I am so so, I see $1.40 its CY17 (FY17/18) upside
Otherwise a good little earner.
Needs to kick out a cent dividend, but as it has $5m in borrowings probably not good for the company to do that
Column 1
Column 2
Column 3
Column 4
0
Year
Revenue ($M)
NPAT
1
CY16
69
9
2
CY15
55
7
3
CY14
33
6
4
CY13
27
3
JCI Price at posting:
85.0¢ Sentiment: None Disclosure: Held
