Sino Grandness

specuvestor Wrote:It's not about structure it's about trust now

for one, I don't trust s chip easily . I have seen enough of how Chinese businessmen do business in China . But of course , we need to evaluate each s chip on its own merit . Good luck to those who are vested .

(09-12-2014, 12:29 PM)Curiousparty Wrote:

specuvestor Wrote:It's not about structure it's about trust now

for one, I don't trust s chip easily . I have seen enough of how Chinese businessmen do business in China . But of course , we need to evaluate each s chip on its own merit . Good luck to those who are vested .

ya luck and patience.

It's interesting to observe the sell down of sfig again today. If an negative announcement appears within the next 2 weeks, it means insiders are in the know of something. Otherwise it's just market volatility.

On another note, it is true the value of SFIG depends greatly on the trust one has. If your trust is repaid, the intrinsic value is 0.94. Otherwise this stock is a zero value. For vested individuals, the truth is likely to be out by 30 June 15 of whether it has faked its growth story or otherwise

Using this post as a bookmark to mark the recent 15% price decline over this 2 days

dont think there is any negative announcement coming..the next will be AIP from SGX on the placement. Expect this to be soon.

(09-12-2014, 03:28 PM)CY09 Wrote: It's interesting to observe the sell down of sfig again today. If an negative announcement appears within the next 2 weeks, it means insiders are in the know of something. Otherwise it's just market volatility.

On another note, it is true the value of SFIG depends greatly on the trust one has. If your trust is repaid, the intrinsic value is 0.94. Otherwise this stock is a zero value. For vested individuals, the truth is likely to be out by 30 June 15 of whether it has faked its growth story or otherwise

Using this post as a bookmark to mark the recent 15% price decline over this 2 days

I guess it is due to market volatility, with all chips down, except few blue chips.

After the share price fell below 40 cents, base on the additional term in the agreement, the placement will be re-negotiated. It has created more bearish on the company share price, I guess.

(not vested, and just sharing as an observer)

SINO GRANDNESS FOOD INDUSTRY GROUP LIMITED
(Incorporated in the Republic of Singapore)
(Company Registration Number: 200706801H)
PLACEMENT OF 86,000,000 NEW ORDINARY SHARES IN THE CAPITAL OF SINO GRANDNESS
FOOD INDUSTRY GROUP LIMITED – APPROVAL IN-PRINCIPLE FROM THE SINGAPORE
EXCHANGE SECURITIES TRADING LIMITED
Unless otherwise defined, capitalised terms used in this announcement, shall have the meaning
ascribed to them in the announcements released on 6 November 2014, 29 October 2014 and the
announcement dated 2 October 2014 released on 8 October 2014, unless otherwise stated or the
context requires otherwise.
Further to the announcements released by the Company on 6 November 2014, 29 October 2014 and
8 October 2014 in relation to the Placement, the Board of Directors of the Company is pleased to
announce that the Singapore Exchange Securities Trading Limited (“SGX-ST”) has today granted
approval in-principle for the listing and quotation of 86,000,000 Placement Shares on the Main Board
of the SGX-ST.
The approval in-principle granted by the SGX-ST is subject to the following:-
(a) compliance with the SGX-ST’s listing requirements;
(b) Shareholders’ approval being obtained for the Placement at the extraordinary general meeting
(“EGM”) to be convened;
© Submission of:
(i) a written undertaking from the Company that it will comply with the Rule 704(30) and
Rule 1207(20) of the Listing Manual in relation to the use of the proceeds from the
Placement and where proceeds are to be used for working capital purposes, the
Company will disclose a breakdown with specific details on the use of proceeds for
working capital in the Company’s announcements on use of proceeds and in the
annual report of the Company;
(ii) a written undertaking from the Company that it will not allot and issue any of the
Placement Shares so as to transfer a controlling interest in the Company without the
prior approval of the Company’s shareholders in a general meeting in compliance
with Rule 803 of the Listing Manual and;
(iii) a written confirmation from StartUp Consultants Ltd that it will not directly or indirectly
pass on any part or all of the referral fee to any of the Subscribers; and
(iv) a written confirmation from the Company that it will not issue the Placement Shares to
persons prohibited under Rule 812(1) of the Listing Manual; and
(d) the Placement Shares having to be placed out within seven (7) market days from the date of
the EGM to be convened.
The Company has, by way of a letter to the SGX-ST dated 6 November 2014, complied with items
©(i), ©(ii) and ©(iv) above. The in-principle approval of the SGX-ST is not to be taken as an indication of the merits of the
Placement, the Placement Shares, the Company and/or its subsidiaries.
Shareholders and potential investors should exercise caution when trading in the Shares in relation to
this announcement as there is no certainty that the Placement will be completed as they are subject
to, inter alia, fulfilment of terms and conditions set out in the Subscription Agreements and
Shareholders' approval. When in doubt as to the action they should take, Shareholders and potential
investors should consult their financial, tax or other advisors.
By Order of the Board
Huang Yupeng
Chairman and CEO
9 December 2014

I am totally against this placement of shares as it will expand the company's share base by 14.6%. However, it will go through as the minorities does not have lots of power. Let's try to apply the valuation of SFIG with an expanded share base.

New no of shares=663.5M shares

Expected Garden Fresh Revenue for FY 14= 1.989B Rev (by proportion of Beverage sales to total sales in AR13)
Assuming PBT margin of 25.1% and 25% tax rate (FY 13; beverage net profit margin was 26.6%)
Thus Garden Fresh net profit for FY 14 is about 374M RMB. Applying a 10x PE, Garden Fresh is worth about RMB3.78B or s$804M. With Bondholders getting 23.4%, SFIG shareholder's share is s$616M. Adding in the value of its canned vegetables which is about s$140m [Assumptions: Vege business: tax rate at 30%, PBT RMB 188M, PE 5 times]. total value of SFIG group is s$746m. *Assuming placement goes through at 0.36 per share, SFIG will get nett s$29.5M.

Therefore value of company with expanded share base is s$1.18/share, 94 cents (applying 20% MOS)
Without expanded base is s$1.28/share, $1.02 (20% MOS) [s$29.5M placement proceeds is omitted]

With this valuation, it really makes me question the real need for the Thai investor to come in. While it is true his Thai connection can help SFIG expand into the Thai market especially when Thais now spend a lot at Thailand's hypermarts; is the dilution of value really worth it?

Secondly as many people are aware, this is a S-chip. So for those who wish to be vested, they have to trust the figures are not inflated. Lastly, SFIG experienced a 8.6% fall in value today. My conclusion is that it is likely due to the Shanghai Composite selldown as SFIG's sell down occurred from about 2 pm and this coinciding with the fall in the Shanghai composite after China's govt announcement.

<vested, *but will like to give a warning that sale's figure for Garden Fresh could be inflated because selling approx 400 Million bottles of beverages is unbelievable to some. Assuming a China individual purchases 10 bottles of loquat annually. This means Garden Fresh has approx 40M consumers>

(09-12-2014, 10:03 PM)CY09 Wrote: <vested, *but will like to give a warning that sale's figure for Garden Fresh could be inflated because selling approx 400 Million bottles of beverages is unbelievable to some. Assuming a China individual purchases 10 bottles of loquat annually. This means Garden Fresh has approx 40M consumers>

It seems like you have set yourself up for a 'heads i win, tails i don't lose' situation (If SFG turns out fine, you look good. If SFG turns out a dud, you don't look so bad with this 'disclaimer' here)

Actually it is very simple - Issue at <intrinsic book value (in this case, superficially assume tangible NAV), you destroy shareholder value. Issue stock at P/E=5 and the company need to justify these funds by recycling the capital into projects for IRR of 20%. Your numbers do not suggest that either of these criteria is been satisfied - my next best conclusion is that the owners are most probably desperate. As to why they are desperate, it is still not very conclusive but i would guess that the odds of profiting from this 'desperation' are not with the side of long-only common stock owners.

Wow. Congratulations for being one of the Best Under A Billion companies in 2014

Mainboard-listed Sino Grandness Food Industry Group Limited 中华食品工业集团有限公司 (“Sino Grandness” or “the Company” and together with its subsidiaries, the “Group”) (stock code : T4B.SI), a Shenzhen, China based food and beverage company principally involved in the production and distribution of fruit juices as well as canned food products is pleased to announce that the Company was selected by Forbes Asia as one of the “Best Under A Billion” companies in 2014.

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

<not vested>

(20-10-2014, 08:53 AM)CityFarmer Wrote:

(19-10-2014, 11:10 PM)ValueBeliever Wrote: If HK rejects Alibaba, I m sure its got a good enough reason to reject SGrand (=why wait if its a good deal to list in HK).

FYI, Alibaba was rejected for dual-class shareholding structure. Is Sino having the same issue, and is rejected with the same reason? I seriously doubt so, although I don't know the company well.

(19-10-2014, 11:10 PM)ValueBeliever Wrote: All I heard from Singapore official comment is HK people are not realistic - haha! Wasnt it true that Singapore aspire to be like street smart HKer! How history change? So much for China is good for Asia!!

I don't know the source for the statement. I reckon the statement means the protesters, rather than HKers as a whole. For those familiar with Hong Kong, will agree that HKers are very pragmatic. I admire that they run, instead of walk, when moving along streets, in order not to waste time travelling. I hardly able to catch-up

(19-10-2014, 11:10 PM)ValueBeliever Wrote: My own observation of chinese mainland stock is that they are untouchable as the well connected played them to ridiculous level. Corruption in imbue into the system and it gets into the stock market so much that that they way the chinese would play it. Its like Malaysia CLOB. The PE ratio is off the chart and lets not talk about book value!

There are true in the statement, but on the other hand, major foreign funds are still eyeing on China stocks, and remain vested. It might also true on the flip side of the coin, thus worth a deeper yet caution look into the China stocks, IMO

(10-12-2014, 06:35 PM)cyclone Wrote: Wow. Congratulations for being one of the Best Under A Billion companies in 2014

Mainboard-listed Sino Grandness Food Industry Group Limited 中华食品工业集团有限公司 (“Sino Grandness” or “the Company” and together with its subsidiaries, the “Group”) (stock code : T4B.SI), a Shenzhen, China based food and beverage company principally involved in the production and distribution of fruit juices as well as canned food products is pleased to announce that the Company was selected by Forbes Asia as one of the “Best Under A Billion” companies in 2014.

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

<not vested>

Not implying anything. But the award criteria is purely quantitative. Foreland is on the list in the past.

( not vested )