2 year chart showing k1 had come to the tail of ascending triangle pattern,which indicated another big rally may coming soon.

however,since short term chart remain sideways,it may take some time for the next rally to kick off.

to be conservative,investor with holding power of 3-6month may consider accumulate at 50cen level.

trader are advice to step in only when previous high of 56.5cen is break,and able to trade above 58cen with high volume.

when next rally started,k1 could climb up to 75-80cen level.

good luck to all participant.

congrat to those who had buy the stock 1 month ago and keep until now.good profit aldy.

however,given the stock had reach my previous target,which is ranging between 30-32cen(equal to around 10x PE of annualized 4q net profit),profit taking is suggested for now,given upside may less than 10% in near term.

K-0ne will be my next target.cheer

good fundamental,good growth prospect,good valuation,good dividend record.

good company to invest.

personally,i believe the fair value was around 30-32cen.don sell below 30cen if you are capable to hold the stock.wait 3-6 month.seem like share price started to reflect its value.

pradeep,regard the private placement.i suspect may due the owner attempt to benefit from low share price by place out share to friendly but non-legal related party(the buyer was from china,xie zhi dong).

by doing this, the controlling shareholder not only gain more power when they intent to do corporate exercise(more easier to pass resolution),but also benefited if xinquan suddenly announce higher dividend payout.

so,if xinquan announce another round of placement,i wont be surprise since depressed share price provided good opportunities for owner to take advantage.

agree.most of the local investor call xinquan as a con stock just because,they think all the china company listed locally are having serious problem.however,if u ask them what is the problem of xinquan ,or did xinquan con money so far?i believe they cant give u a firm answer,other than no dividend with rich cash pile.

it is logical to say,negative perspective regard xinquan may purely a sentimental issue,which can be resolve and improve significantly when people started to realize xinquan may not as bad as their think.

lets do a very simple calculation.

for the next 1-2year,assume xinquan's probability of being good and bad is 50:50.

when the worst happen,potential losses that investor might face could up to 50%(not logic to assume more since cut loss is posible)

however,if everythings goes well,try to calculate the potential:

1st half EPS:23cen(annualized should not less than 45cen since 3rd q result was well supported by chinese new year)

logically,we can estimated at 59cen,xinquan was trade at PE of 1.31x.

if current valuation catch up with other red chip,which is traded at less 2x PE,xinquan can goes up to 90cen easily(highly achievable since the stock had regain momentum due to good result and unexpected dividend.)

and,china reduce interest rate is good to consumer stock like xinquan as well.the theme could drive xinquan valuation further by next 1-2week.

every 1x improvement in PE,xinquan share price will up by about 45cen:

1xPE=45cen
2XPE=90cen
3xPE=RM1.35
4xPE=RM1.80
5xPE=RM2.25

eventhough we set merely 3x PE as 1 year target,xinquan's upside can up to 128%, surpassing downside for sure,not to said 5x PE or even higher valuation if the stock is re-rate due to more good news coming in.

business perspective,not many people is realized that xinquan is doing well with its Gertop brands.with the brand now quite famous within consumers,xinquan's result should getting better and better going forward,hence increase the probability of continuous dividend payout,ultimately push up share price.

it's all about the risk and reward matter.

lets examine my positive view regard xinquan after 6 month and 1 year time.