Thursday, July 17, 2008

Estimation based on Tax information

Here is my version based on tax information:

By the mid-June LDK has paid 124 M CNY tax. If we consider at least another half month to 20 days, they will have to pay 8-10% more that will be 135 M CNY (124/11 * 12 = 136 M or 124 * 1.09 = 135 M).

first Q tax was 8.511 M USD = 60.43 M CNY (exchange rate ws 7.1 at that time), then Q2 tax paid was: 135 M - 60.43 = 74.57 M CNY, which is 10.95 M USD (rate: 6.81 now).

Then based on 14.5% taxation rate (based on last Q), the net income would be 11.097M /0.145 * 0.855= 64.5 M,divided by 110 M shares, EPS is 0.58, which also agrees with my 0.56-0.58 range.

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