Yesterday, I wrote about China GrenTech (NASDAQ: GRRF), Linktone (NASDAQ: LTON) and ZST Digital Networks (NASDAQ: ZSTN), three Chinese mobile stocks that listed on US exchanges via the more stringent IPO process rather than through a reverse merger; while today, I wanted to mention three cash rich Chinese semiconductor stocks, Actions Semiconductor (NASDAQ: ACTS), Vimicro International Corporation (NASDAQ: VIMC) and SGOCO Group (NASDAQ: SGOC) that also IPO’d. So why does it matter if a Chinese stock listed via an IPO or a reverse merger? Simply stated, investors should (at least in theory) have more piece of mind with a Chinese stocks like ACTS, VIMC and SGOC that went through the more stringent IPO process rather than those that got their US listing via a reverse merger. Hence, here is a closer look at ACTS, VIMC and SGOC to help you decide whether any of them is worth further due diligence.

Cash Rich Actions Semiconductor (NASDAQ: ACTS) Is Well Below Its Book Value

Actions Semiconductor is a Chinese fabless semiconductor company that develops integrated platform solutions for manufacturers of portable media players. What is interesting about Actions Semiconductor is that the company reported $42,872k in cash and cash equivalents, $164,905k in short-term investments and a total of $218,757k in current assets. Yet and on Wednesday, Actions Semiconductor rose 0.47% to $2.13 (ACTS has a 52 week trading range of $1.83 to $2.60) and had a book value of 3.83 per share. In other words, the shares are work less than the cash and current assets being reported. However, investors should also note that ACTS has a sky high P/E ratio of 128.16 and remember the highly cyclical nature of the semiconductor industry.

Vimicro International Corporation (NASDAQ: VIMC) Is Also Cash Rich

Vimicro International Corporation is a Chinese multimedia semiconductor and solutions provider that develops mixed-signal semiconductor products as well as system-level solutions that allow for multimedia capabilities in consumer electronic, communication and surveillance products. In December, Vimicro International Corporation divested certain non-core business lines in order to focus on its core multimedia semiconductors and surveillance business. However and at the end of June, Vimicro International Corporation reported that sequential revenues were expected to fall from $24.4 million for 4Q2010 to $13.2 million for 1Q2011 for a variety of factors. Hence, Vimicro International Corporation nose dived 21.9% on Friday and on Wednesday, shares fell 2.67% to $1.82 (VIMC has a 52 week trading range of $1.78 to 44.79 a share). Nevertheless, it should be noted that at the end of last year, VIMC was sitting on current assets of $135.3 million and a book value of 3.52.

SGOCO Group (NASDAQ: SGOC) Posted Stunning 1Q2011 Results

SGOCO Group is a Chinese designer and manufacturer of branded liquid crystal display solutions. At the end of last week, the SGOCO Group named Grant Thornton, China member firm of Grant Thornton International (“Grant Thornton”), as their independent registered public accounting firm. Moreover and near the end of June, SGOCO Group reported that total revenues increased 347% from $19.5 million for 1Q2010 to $87 million while net income increased 826% $0.6 million to $5.1 million. Hence, SGOCO’s share rose 91.0% to $5.10 but since then the stock has come back down to earth. On Wednesday, SGOCO Group fell 1.08% to $3.97 and has a 52 week trading range of $1.76 to $6.88 a share. Investors should also note that SGOC Group ended 1Q2011 with $33.0 million in cash and cash equivalents and has a book value of 4.11.

The bottom line. On the surface, Chinese semiconductor stocks ACTS, VIMC and SGOC all look strong as they are cash rich and all debuted via an IPO rather than a reverse merger but as always with Chinese stocks, nothing is ever 100% certain.