Mar 31, 2006 15:47
1535 [Dow Jones] Power chord maker Solartech (1166.HK [News / Quote]) up 12.3% to 64 HK cents, 2-year high, 33.7 million traded, already nearly double 19.5 million yesterday; company says chairman Chau Lai-him bought 22.2 million shares in market between Monday-Thursday, equals 5.7% of company. Purchases take Chau's stake to 26.6% of company, come after last Friday Solartech announced FY05 results; sales up strong 26.8% to HK$1 billion, profit up 11.1% to HK$22.5 million, EPS of 5.74 HK cents, putting company at 11.1X FY05 earnings, not cheap given low-margin business. However chairman's buying sends strong signal business may pick up further this year, stock could have more near-term upside on story; just small improvement in margins would translate into big improvement in company's earnings.(JOG) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com