Sino Grandness

[Adagio]

The share price is still below 40 cents.

If the Thai investors and/or Chairman Huang still want to see the placement deal carrying through, we should see share price at 40 cents or higher near/on "the last market day immediately preceding the date of completion".

However, I think many people are still very sore that the placement shares were sold to the Thai investors for a song.

[leeeta]

Guess there is going to be a "signing off the placement" since they mentioned about a venue for completion. May see some Thai representative there and hopefully some positive announcements thereafter.

Pursuant to the Supplemental Agreements, the Company and the Subscribers have agreed that,
subject to and in accordance with the terms and conditions of the Subscription Agreement, the Letter
Agreement and the Supplemental Deed, upon and subject to fulfilment of the Conditions:
(a) the Completion Date (as defined in Clause 1.1 of the Subscription Agreement) will be 30
December 2014, and
(b) the venue for Completion, as specified in Clause 3 of the Subscription Agreement, will be the
offices of RHT Corporate Advisory Pte. Ltd. at 6 Battery Road, #10-01, Singapore 049909.

[CY09]

I sincerely hope SFIG provides the final catalyst of an IPO of Garden Fresh (this is my thesis for investing). As per one of my threads posted here, the valuation of SFIG's share of Garden Fresh exceeds the mkt cap of the former listed here by 2.5 times. If the ipo does materialize, it is a very big gain. Also, with the placement going through, i hope SFIG will give a dividend this coming FY. At an estimated 20 cents EPS, it means dividends is about 2 cents, that is a dividend yield of 5%.

Secondly, I read somewhere it is mentioned the thai investor has a 10 yr lock in period. I am unable to locate the online source. Could any1 guide me to it? thanks

[leeeta]

I sincerely hope SFIG provides the final catalyst of an IPO of Garden Fresh (this is my thesis for investing). As per one of my threads posted here, the valuation of SFIG's share of Garden Fresh exceeds the mkt cap of the former listed here by 2.5 times. If the ipo does materialize, it is a very big gain. Also, with the placement going through, i hope SFIG will give a dividend this coming FY. At an estimated 20 cents EPS, it means dividends is about 2 cents, that is a dividend yield of 5%.

Secondly, I read somewhere it is mentioned the thai investor has a 10 yr lock in period. I am unable to locate the online source. Could any1 guide me to it? thanks

http://www.nextinsight.net/index.php/sto...m-thailand

http://infopub.sgx.com/FileOpen/Sino_Gra...eID=317470

Moratorium on the Placement Shares held by Soleado
Pursuant to the Soleado Subscription Agreement, Soleado agrees and undertakes that for the
duration of the 10-Year Period, Soleado, TTA and/or the subsidiaries of TTA in aggregate shall
continue to hold at least 47,134,138 issued Shares and shall not sell or transfer to any third
party (apart from Soleado and/or its related corporations) such number of Shares resulting in
their aggregate shareholding in the Company falling below 47,134,138 Shares (“Soleado
Moratorium”). For the avoidance of doubt, after the 10-Year Period, the Soleado Moratorium
shall no longer apply.

[leeeta]

I sincerely hope SFIG provides the final catalyst of an IPO of Garden Fresh (this is my thesis for investing). As per one of my threads posted here, the valuation of SFIG's share of Garden Fresh exceeds the mkt cap of the former listed here by 2.5 times. If the ipo does materialize, it is a very big gain. Also, with the placement going through, i hope SFIG will give a dividend this coming FY. At an estimated 20 cents EPS, it means dividends is about 2 cents, that is a dividend yield of 5%.

Secondly, I read somewhere it is mentioned the thai investor has a 10 yr lock in period. I am unable to locate the online source. Could any1 guide me to it? thanks

by the way what is your impression of this 10 yr lock period? What do you think is cooking?

Interesting that they brought the date of completion to EGM date..like cannot wait to get married like that. hahaha. or ..??

[CY09]

Hi Leeta,

It is good to have a 10 yr lock in period as it signals the Thai guy is confident after doing his DD. I have not much comments to what is cooking as I am not confident to comment based on what I have gathered. If SFIG's account is indeed inflated and given the requirement to give dividends at 10% of earnings under the agreement, the cash will run out in 3 years time and a cash call will be made. However, before this 3 years will run out, an important event will happen and that is the IPO of Garden Fresh. Personally, I will not like it if SFIG takes the path of paying the bondholders and not IPOing in June 15. I would rather Garden Fresh IPO on HKSE - it will bring everything out in light.

From the looks of it, Garden Fresh seems to be the entity draining cashflow from its capex and marketing, therefore raising cash from an IPO exercise is more favorable than looking for further placements, from the perspective of a shareholder residing in Singapore. It gives me the confidence that Garden Fresh's accounts are real and there is a platform valuing it and that is the HKSE. Some may say that being listed on an exchange can be a fraud and will point to our s-chips here. However, HKSE is very stringent in its listing and fraud cases are fewer and far between as compared to SGX. This is why S-chips rather list here than HKSE despite their attractive story when "IPO"ing. IMO, listing in HKSE is a better preposition than listing in SGX.

Secondly, I have checked and it is true Garden's Fresh product exist and is on sale. However this does not justify much, investors with China Eratat will know this point well; the presence of stores and products in China is one thing, but the declaration of sales figure is another. What makes SFIG issue dicey and hard for me to determine if the sales are inflated is due to CMZ. CMZ is in the loquat business as well and is producing about the same margins with the same growth. On the other hand, Eratat stood out as the super grower among its competitors who were not growing that rapidly and it had a cash hoard but needed money. For SFIG, the reverse is true. In addition, a small fund manager, who I know, with <20 stocks too held SFIG in the recent past and I am sure he did his due diligence then before investing. With all these info, I am confused over the decision to call SFIG a fake or unlike how I out rightly did in Eratat's thread and to an extent in FJZY.

Given my findings, it becomes a 50-50 to me. With my valuation of SFIG at 0.94 (20% MOS) and market price of 0.40 (i bought a stake at 0.405), it seems like not a bad bet for me to side with SFIG. Secondly, I may be biased as I did the same thing for CMZ too last year. Upon the news of it being accused a fraud, I bought CMZ and reaped a gain upon its takeover offer by Indoagri.

[portuser]

................. Also, with the placement going through, i hope SFIG will give a dividend this coming FY. At an estimated 20 cents EPS, it means dividends is about 2 cents, that is a dividend yield of 5%.

A dividend of 2 S’pore cents (RMB 0.95) next year will require Sino Grandness to achieve a profit of RMB 640m (RMB 0.95 * enlarged 673.3m shares) in 2014.

With 9-month profit of RMB 448m, 4Q has to deliver RMB 192m.

This may be unrealistic given that profit in 4Q last year was RMB 59m only. (Cold weather renders 4Q a weaker quarter.)

If 4Q 14 brings in RMB 70m, a dividend of 1.6 S’pore cents ([448m + 70m]/673.3) is possible, and pay-out will amount to $11m.

There have been suggestions that Sino Grandness needs Mr Prayudh’s money badly to redeem the convertible bonds falling due next year in the event of Garden Fresh failing to get listed.

The maximum redemption amount is RMB 650m (or $135m). The original placement price of $61c would result in net proceeds of $49m, from which an annual dividend of $11m is to be made.

The proposed share placement is more likely to set the stage for strategic alliance between Sino Grandness and Mr Prayudh. Sino Grandness has indicated before that it will be able to secure the required bank loans to pay off bondholders, if the proposed IPO of Graden Fresh does not materialise.

By the way, the circular dated 12 Dec states that completion of the proposed share placement “shall take place on the date falling five (5) Business Days from the date of service of the later of the notices to be issued by the Company and the Subscriber upon fulfilment of their respective conditions…”.

One of the conditions to be fulfilled by Thai investor is “approval from the relevant authorities in Thailand in relation to exchange control and payments to be made out of Thailand”.

That the completion date has been brought forward to tomorrow (the date of EGM) indicates that the money is here for payment of the placement shares.

[leeeta]

Hi Leeta,

It is good to have a 10 yr lock in period as it signals the Thai guy is confident after doing his DD. I have not much comments to what is cooking as I am not confident to comment based on what I have gathered. If SFIG's account is indeed inflated and given the requirement to give dividends at 10% of earnings under the agreement, the cash will run out in 3 years time and a cash call will be made. However, before this 3 years will run out, an important event will happen and that is the IPO of Garden Fresh. Personally, I will not like it if SFIG takes the path of paying the bondholders and not IPOing in June 15. I would rather Garden Fresh IPO on HKSE - it will bring everything out in light.

From the looks of it, Garden Fresh seems to be the entity draining cashflow from its capex and marketing, therefore raising cash from an IPO exercise is more favorable than looking for further placements, from the perspective of a shareholder residing in Singapore. It gives me the confidence that Garden Fresh's accounts are real and there is a platform valuing it and that is the HKSE. Some may say that being listed on an exchange can be a fraud and will point to our s-chips here. However, HKSE is very stringent in its listing and fraud cases are fewer and far between as compared to SGX. This is why S-chips rather list here than HKSE despite their attractive story when "IPO"ing. IMO, listing in HKSE is a better preposition than listing in SGX.

Secondly, I have checked and it is true Garden's Fresh product exist and is on sale. However this does not justify much, investors with China Eratat will know this point well; the presence of stores and products in China is one thing, but the declaration of sales figure is another. What makes SFIG issue dicey and hard for me to determine if the sales are inflated is due to CMZ. CMZ is in the loquat business as well and is producing about the same margins with the same growth. On the other hand, Eratat stood out as the super grower among its competitors who were not growing that rapidly and it had a cash hoard but needed money. For SFIG, the reverse is true. In addition, a small fund manager, who I know, with <20 stocks too held SFIG in the recent past and I am sure he did his due diligence then before investing. With all these info, I am confused over the decision to call SFIG a fake or unlike how I out rightly did in Eratat's thread and to an extent in FJZY.

Given my findings, it becomes a 50-50 to me. With my valuation of SFIG at 0.94 (20% MOS) and market price of 0.40 (i bought a stake at 0.405), it seems like not a bad bet for me to side with SFIG. Secondly, I may be biased as I did the same thing for CMZ too last year. Upon the news of it being accused a fraud, I bought CMZ and reaped a gain upon its takeover offer by Indoagri.

Thanks for the reply..
Yeah agree on that point that product is real and is on sale in China may not mean anything but to have it on sale in HK via Wellcome and in the future 7-11 says something abt the volume and revenue (both wellcome and 7-11 under Jardine Mattheson - dont think these are are so silly to just accept any product without doing their own dd). 7-11 have chains too in China and dont tell me they dont know how much revenue is derived from GF's products? I dont think SinoG dare to fake the last qtr's numbers as well after the shortseller report with the ipo just around the corner..

btw I would have preferred that SinoG takes up a bank loan to pay of the CB holders and delay the IPO for 2 to 3 months. Your valuation of 94cts, I assume is using 2013 figures...would be different if you use 2014 and that shares are not alloted to Cb holders.

[Young Investor]

I am convinced that SGFI is genuine and unlikely to have faked its figures.

First, sales of Garden Fresh in Wellcome and 7-Eleven in HK.

Second, holders of 80.5% of 2011 bonds chose not to redeem in Oct, and all 2012 bonds were not redeemed although their holders had the rights.

Third, Prayudh’s decision to invest in Sino Grandness, and he did not change his mind even after the short-seller report.

(Vested)

[newborn1000]

Made a tidy sum today with this counter to close out this year...........tomorrow should be half day.......

Bought today at opening price, should I sell tomorrow at opening price too??

lolx, just kidding....... vested till further notice