Jinpan International (JST) is a 'nuts and bolts' infrastructure manufacturer producing custom transformers which benefit from growing Chinese electric demand and is a deserving component of any conservative EM portfolio.
- A 5 year investment in expanded and automated manufacturing capacity is about to pay off. Jinpan is now the largest cast resin transformer manufacturer in China, by capacity.
- Operating margins are expected to grow to 10%, sustainable earnings growth of 15%.
- The structure is tight; the float's a paltry 12 million shares; pays a current dividend of 1.6%.
- Jinpan trades at a steep discount to its tangible book value of $11.62 and has no debt.
Jinpan went public in 1998 and was not a part of the reverse-takeover...
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