Generalizing S-Chips?

With the recent fiasco with 2 S-Chips listed on the SGX, namely, China Hongxing and Hongwei Technologies and their accounting irregularities in their financials, I think many now have nodded their heads in agreement in general that S-Chips are indeed unreliable and dangerous to invest in.

However, looking at the current S-Chips in my portfolio, namely JES International and Fuxing China Group, I think that the stereotype of S-Chips being poorly run and managed is unfair to these well performing S-Chips.
JES International and Fuxing recently posted good results for their FY10, with Fuxing continuing the policy of declaring dividends. Fuxing declared a 0.02 CNY dividend for FY10 even though they are in the midst of acquiring 3 companies for their horizontal expansion. JES reversed a loss in FY09 to post a better than expected  profit and currently have a huge orderbook worth 1.6billion which would keep JES's shipyard busy for the next 2 years as explained by their CEO Jin Xin.

I am optimistic of both companies growth in the years to come and if you have missed taking a position on JES when the Libya unrest caused the STI to fall for the past 2 weeks, the price now at 31 cents still represent a good opportunity to enter. Fuxing on the other hand has been holding steady at 16.5/17 cents since the start of the year. With continued good results and dividends, both companies share prices look good to rise with the investors' increased confidence when they are announced.

Bullish end to 2010

Sold off my stakes in SATS 3 lots @ 2.89 due to the incoming news of a 3rd baggage handler at Changi airport which may reduce SATS market share
tidy profit of about $320 including the 5 cent dividend


Bought one of my watchlist stocks genting hk @ 43.5cents. Time for a rebound to the 52cents high


Meanwhile, JES hit a high of 35.5cents today after announcement of 6 more new contracts. Hopes it break 36cents soon! Closed at 0.345 instead


To add,  quite a while ago I got 1 lot of SabanaREIT @ 1.05 via IPO :(