Latest half year profit was $1.65m. If we double that to $3.3m annual profit, and the market cap is $100m, then this gives a P/E ratio of around 30.
Company board complained that hardly any Australians took up the IPO. And chances are the price will slowly trick down to the single digits P/E ratio area like all the other Chinese shares sitting at a P/E ratio around 1 to 4. Revenue and earnings growth are high. Looks like a neat company.
But... happy to wait a year or two as odds are the share price will have dropped due to lack of Australian buyers, and will RTE will then be a bargain. It's hardly cheap at a P/E of 30 at present. Management did extremely well to get the IPO price that they did.
RTE Price at posting:
47.0¢ Sentiment: Sell Disclosure: Not Held
