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ai ya, too busy to apply today... miss boat already =(
nr say is good and tp above $1
any one has the latest grey mrt value of this?
some say above S1
some say above S1
Hsu Fu Chi International has revived a plan to list in Singapore after twice failing to sell shares in Hong Kong, the South China Morning Post reported, citing an unnamed source
http://forum.shareinvestor.com/forum/showthread.php?t=1827
Its historical PE is quite attractive compared to its peers. Want Want trades at 17.5x 2006 earnings. Hong Kong-listed Tingyi, a Taiwanese food and beverage firm that is China's leading maker of instant noodles, trades at 26.6x 2006 earnings.
high PE means high growth potential. anybody knows their ROA/ROE?
my sentiments too .. the PE is very high as compared to most other new IPOs.
Hsu Fu Chi had 3.1% of the market in 2004 and was fourth in terms of its share in the Chinese market, up from 2.5% in 2001.
hmm.... p/e of 14.2x and offering price of $0.85 looks a bit expensive though
| Hsu Fu Chi International Ltd | |||||||||||||||||||
| Issue statistics: | |||||||||||||||||||
| Offer size: 125.0m new shares | |||||||||||||||||||
| |||||||||||||||||||
| Price: S$0.85 (Max offering price) | |||||||||||||||||||
| NTA per share (post-IPO): S$0.37 | |||||||||||||||||||
| Historical PE: 14.2x (FY06) | |||||||||||||||||||
| Market Cap (post-IPO): S$675.75m | |||||||||||||||||||
| Open: 23 Nov 2006 | |||||||||||||||||||
| Close: 27 Nov 2006, 12.00noon | |||||||||||||||||||
| Trading: 1 Dec 2006 (on "when issued" basis) | |||||||||||||||||||
| Lead Manager: Cazenove | |||||||||||||||||||
| Hsu Fu Chi markets a diverse range of confectionery products in the PRC using its extensive sales network as well as strong brand name to generate sales in the country. Candy Products, Cake and Cookie Products as well as Sachima Products are the Group's key categories of products. It adopts a multi-product strategy with its primary brand (Hsu Fu Chi) and secondary brands, such as "DoDo" and "Chaobii". | |||||||||||||||||||
| The Group runs 56 sales offices across most of the PRC to provide local market as well as sales information to its Sales Headquarters so as to formulate sales and marketing plans. The primary focus of each sales office is to provide direct sales to customers, which include key hypermarket and supermarket chains like Carrefour and Wal-Mart. | |||||||||||||||||||
| Revenue rose 13.6% to Rmb$2,056.3m in FY06 from Rmb$1,809.4m in FY05. The Group raised the selling prices of its key products in response to the higher market demand driven primarily by the higher brand profile in the market. Eight more sales offices were established which raised sales level and market activities. The Group also benefitted from a longer Sales Peak Season in FY05. | |||||||||||||||||||
| |||||||||||||||||||
| Net IPO proceeds of approximately S$98.5m will be used for: | |||||||||||||||||||
| 1) S$19.9m expansion into new markets. | |||||||||||||||||||
| 2) S$14.0m to enhance the Group's marketing efforts. | |||||||||||||||||||
| 3) S$29.9m to finance new production facilities for confectionery products. | |||||||||||||||||||
| 4) S$34.7m for general working capital of the Group. |
Confectionery firm Hsu Fu Chi International said it will launch an initial public offering (IPO) here of 125 mln shares at a maximum price of 0.85 sgd each. mkt cap will be more then 300m after IPO.
It said it expects stronger growth momentum going forward on the back of its expansion plans, strong brand loyalty, and continued high demand in China.
"We are very optimistic because the room for future growth is large. Our future growth will definitely be better than what we have seen earlier," Hsu Fu Chi executive chairman Mekey Hsu told XFN-Asia after a media briefing.
"We hope to use this IPO to accelerate growth and raise our profile," Hsu said. Proceeds from the offering will be used to expand its sales and distribution network into China's second- and third-tier cities, build new regional logistics centers and warehouses, and expand its production facilities. Hsu Fu Chi currently operates 56 sales offices across China and plans to set up more than five new sales offices by June next year.
Annual production capacity rose to 176,000 tons in 2006 from 150,000 tons in 2004, accompanied by an increase in utilization rate to 96 pct from 78 pct over the same period, Hsu said. He said this only proves his point that supply still outstripped demand in China. He said the group has been expanding its production facilities, with annual capacity for confectionery products in Dongguan expected to expand by 37,000 tonnes, while its new facility in Sichuan is slated to produce 11,000 tons of confectionery products by 2008. In addition, Hsu Fu Chi is building another facility in Dongguan to produce packaging materials, in order to control the cost and quality of its product packaging, Hsu added. The group is now looking to build a new production facility in Henan next year to produce raw materials that it currently obtains from third-party suppliers. The new facility is expected to produce 20,000 tons of agricultural products by 2009.
Despite the huge overheads involved in expanding its operations, Hsu said he remains optimistic that the company will maintain strong gross profit margins. "When our costs increase, our selling prices also go up, but our customers still remain loyal to our brand because they are also concerned about quality," Hsu said. Going forward, Hsu said the group will also focus on developing higher margin products with longer product life cycles.
It produces an average of 50 new products every year. But the group is not looking to venture beyond China for now. "In China, there is still a lot of room for growth. The gap between demand and supply is still very large," Hsu said. "We are not giving up on overseas ventures, but we need to do the local operations well first."
It will launch an IPO of 125 mln shares at a maximum price of $0.85 each. The IPO comprises 12.5 mln shares reserved for staff and those who have helped in the IPO, 10 mln shares for retail investors, and the rest for placement. The offer will open on Nov 23 and close on Nov 27, where the final price is also expected to be determined after book building. The listing is scheduled for Dec 1.
Gross proceeds, based on the maximum offering price, will amount to about $98.5 mln and the company said it will use the funds to expand into new markets, enhance marketing efforts, and for on new production facilities.
Hsu Fu Chi makes and sells candy, cake and cookie, and sachima products in China. It reported net profit of RMB211.36 mln for the year ended June 2006 compared to RMB161.70 mln last year.
Cazenove & Co (Singapore) Pte Ltd is the sole global coordinator, bookrunner, sponsor, lead manager, and underwriter for the offering.
Taiwanese-backed Chinese confectionery maker Hsu Fu Chi Food plans to tap the market's sweet tooth for mainland consumer stocks through a share sale worth US$70-$80m in Singapore rather than Hong Kong, sources familiar with the deal said.
The company, which makes candies, cakes and biscuits under its well-known brand name in China, had last year planned to raise US$100-$150m through a Hong Kong IPO, but has cut back the size of its deal and switched its listing venue. The sources declined to give the reason for the changes.
Hsu Fu Chi, based in Guangdong province, also has changed its IPO sponsor from BNP Paribas to Cazenove Asia Limited. It plans to float 15% of its enlarged share capital in a November listing, the sources said.
Rising spending power in China fuelled by double-digit percentage economic growth has led investors to crowd into Chinese consumer-related companies listed in Hong Kong and Singapore, pushing up valuations.
Singapore-listed Chinese snack food maker Want Want trades at 17.5x 2006 earnings. Hong Kong-listed Tingyi, a Taiwanese food and beverage firm that is China's leading maker of instant noodles, trades at 26.6x 2006 earnings.
Hsu Fu Chi, which is conducting pre-marketing of its deal, makes its products at plants in Dongguan, near Hong Kong, and is controlled by a Taiwanese family.
Singapore venture capital firm Transpac Industrial Holdings Ltd. invested US$32m for a stake in the firm in 1997.
Hsu Fu Chi, which has fixed assets worth RMB457m, generates most of its sales in mainland China and also exports to Asia as well as Europe and North America.
what's its business?
Anyone have details for this IPO?