China Taisan

China Taisan not well covered by the street with only 1 buy rating. Reckon market is somehow apprehensive of the fibre/fabric players following blowout of some dodgy names. However, China Taisan appears to have done well, posting net profit of Rmb61m for 3Q (9M: Rmb170m) vs Rmb71m for much larger peer like Li Heng. Gross margins of 25-26% are more than double that of Li Heng. Stock trades at v attractive FY10 P/E of 4x, 0.9x P/B & is net cash with little debt.