Eratat Lifestyle rated 'increase exposure' by SIAS

Stock Name: Eratat
Company Name: ERATAT LIFESTYLE LIMITED

Research House: SIAS

Price Call: BUY

Target Price: 0.325

SIAS Research in an Apr 12 research report says: "We attended Eratat’s 2012 Autumn/Winter Collection Party Show on April 8. This year’s Autumn/Winter collection featured some >700 designs (known as stock-keeping units, SKUs) versus >300 last year.

"Eratat’s market capitalization of RMB268.3 million as at April 11 is a discount of RMB551.2 million from its share equity of RMB819.5 million as at end Dec 2011. Trade receivables as at Dec 2011 were RMB442.5 million, while inventory is a low RMB23.06 million. We further noted that cash at bank as at end Dec 2011 was RMB222.0 million versus its market capitalization of RMB268.3 million.

"We continue to hold the view that Eratat’s share price is severely undervalued, noting that it is currently trading at just 121% of its cash balance. Intrinsic value of 32.5 cents. MAINTAIN INCREASE EXPOSURE."

Eratat Lifestyle: A surprise RMB 51.7m sales incentive

Stock Name: Eratat
Company Name: ERATAT LIFESTYLE LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 0.122

Eratat Lifestyle (ERAT SP; S$0.122 -HOLD) - A surprise RMB 51.7m sales incentive offset against outstandingreceivables caused 4Q11 net profit to fall 82% yoy. Expect further write-offof receivables in 1Q12/1H12 for renovation subsidy. We continue to advocatecaution.


Source: CIMB 24 February 2012

Eratat Lifestyle rated 'increase exposure' by SIAS

Stock Name: Eratat
Company Name: ERATAT LIFESTYLE LIMITED

Research House: SIAS

Price Call: BUY

Target Price: 0.325

SIAS Research in a Nov 8 research report says: "Eratat 3Q FY11 results were in line with our expectations. Net attributable profit for 9M FY11 came in at RMB138.8 million or 75.7% of our full year forecast. Sales of higher margin apparel products hit RMB193.0 million in 3Q 2011 on 0.96 million pieces sold.

"1H FY12 apparel sales is expected to be 4-5% higher compared to 1H FY11 - excluding any subsequent restocking orders from distributors. In 4Q 2011, Eratat is recognizing revenue from the remaining 54% of its RMB550 million Autumn/Winter order book.

"Eratat's earnings per share for the first nine months of 2011 came up to 6.2 cents. Currently, Eratat trades at just 1.72x its trailing 12M earnings based on a price of 12.5 cents and 474.9 million shares outstanding. Intrinsic value of 32.5 cents. MAINTAIN INCREASE EXPOSURE."

Eratat Lifestyle rated 'increase exposure' by SIAS

Stock Name: Eratat
Company Name: ERATAT LIFESTYLE LIMITED
Research House: SIAS

SIAS Research in a May 11 research report says: "Eratat's 1Q FY2011 results surprised us again with net attributable profit growing by 90.7% y-o-y on the back of revenue growth of 28.3%. Eratat ended 1Q FY11 with 42% of its Spring/Summer order book of RMB477 million delivered.

"With the remaining orders expected to be delivered in 2Q, we expect 2Q to be more than 30% better than 1Q, in terms of both sales and profits. Eratat's order book of RMB40 million will also be delivered in 2Q FY2011, which will propel Eratat's 2Q performance further upwards.

"The completion of Eratat's recent placement of 60 million new shares at 20.2 cents has, in our opinion, provided the company with the working capital to grow in 3Q and 4Q 2011. Intrinsic value of 43 cents. MAINTAIN INCREASE EXPOSURE."