Shanghai Turbo

[CityFarmer]

2. AR increased 33% in 6 months (Jan to June 2013),
3. AR amounting to CNY111M which is 75% of 2012 annual sales,
4. Dividend reduced from CNY 5c in 2011 to 2.5c in 2012 while revenue and profits increased during the same period,

Base on the limited info above, the receivable day is about 9 months. I didn't look further, I reckon the cash flow statement should be pretty ugly, and probably the reason for the dividend cut.

It look similar as "channel stuffing", but it is a precision engineering company? what an interesting abnormality, and very doubtful indeed, IMO

With the doubt, I will walk away, regardless of valuation, S-chip or not