Sino Grandness

[crubs]

Recently got my hands on a few Euromonitor reports that included Sino Grandness in its statistics.

"Shenzhen Grandness Industry Groups Co Ltd registered the strongest off-trade value growth of 43% in 2014. The company mainly specialised in developing a loquat juice range under the Grandness Brand. The company invested in product promotion and highlighted the benefits of loquat juice. Product differentiation was a fey factor in the product's success. Also, the company endeavoured to penetrate distribution channels in Guangdong province and expand its sales network in other regions of China"

"Shenzhen Grandness Industry Groups Co Ltd saw the biggest increase in value sales in 2014. This company mainly engaged in developing and selling loquat-based juice, including 100% juice, nectars and juice drinks. Loquat tastes good and claims to benefit the lungs and throat. The company made great efforts to establish a healthy image. Due to the hot and humid climate of south China, loquat juice drinks are popular among local residents."

Company Share of Juice by Value in 2014

1) Coca-Cola China: 16.3%
2) Ting Hsin International: 7.1%
3) Coconut Palm Group: 5.7%
4) President Enterprises China: 4.7%
5) Beijing Huiyuan Beverage & Food: 4.4%
6) Hangzhou Wahaha Group: 4.3%
7) Shenzhen Grandness Industry Groups: 4.0%
8) Nongfu Spring: 2%
9) PepsiCo China: 1.5%
10) Beijing Qianshou Fruit & Vegetable Co: 1.3%

Simply amazing, wonder how they did it.

[Oldman9]

Recently got my hands on a few Euromonitor reports that included Sino Grandness in its statistics.

"Shenzhen Grandness Industry Groups Co Ltd registered the strongest off-trade value growth of 43% in 2014. The company mainly specialised in developing a loquat juice range under the Grandness Brand. The company invested in product promotion and highlighted the benefits of loquat juice. Product differentiation was a fey factor in the product's success. Also, the company endeavoured to penetrate distribution channels in Guangdong province and expand its sales network in other regions of China"

"Shenzhen Grandness Industry Groups Co Ltd saw the biggest increase in value sales in 2014. This company mainly engaged in developing and selling loquat-based juice, including 100% juice, nectars and juice drinks. Loquat tastes good and claims to benefit the lungs and throat. The company made great efforts to establish a healthy image. Due to the hot and humid climate of south China, loquat juice drinks are popular among local residents."

Company Share of Juice by Value in 2014

1) Coca-Cola China: 16.3%
2) Ting Hsin International: 7.1%
3) Coconut Palm Group: 5.7%
4) President Enterprises China: 4.7%
5) Beijing Huiyuan Beverage & Food: 4.4%
6) Hangzhou Wahaha Group: 4.3%
7) Shenzhen Grandness Industry Groups: 4.0%
8) Nongfu Spring: 2%
9) PepsiCo China: 1.5%
10) Beijing Qianshou Fruit & Vegetable Co: 1.3%

Simply amazing, wonder how they did it.

Hi Crubs

Thanks. Good info.
By the way, do you have the full report?

Cheers
oldman9

[CityFarmer]

Everyone

fyi, bluedogmeow posted in Sharejunction.com the link to download the euromonitor report "Juice in China" under sino grandness thread.

@moderator , do let me know if it's ok to post the link here. Thank you.

I have removed a moderated post, which has a link to the report.

Euromonitor report is a paid service. We should respect the fruit of their effort. I do understand that the report isn't cheap, but under no reason we should distribute it freely, without authorization.

I reckon the company will published its report base on the Euromonitor report soon.

Regards
Moderator

[leeeta]

Everyone

fyi, bluedogmeow posted in Sharejunction.com the link to download the euromonitor report "Juice in China" under sino grandness thread.

@moderator , do let me know if it's ok to post the link here. Thank you.

I have removed a moderated post, which has a link to the report.

Euromonitor report is a paid service. We should respect the fruit of their effort. I do understand that the report isn't cheap, but under no reason we should distribute it freely, without authorization.

I reckon the company will published its report base on the Euromonitor report soon.

Regards
Moderator

Noted and thanks.

[leeeta]

Interesting war going on at Sharejunction between bluedogmeow and other forummers.

discussion points
>> Sino cost of debt
>> CB redemption
>> comparison between Sino, CMZ and Huiyuan. (Ebitda/Ebit comparison, trade receivables).

[DCF]

May not. Sino G have asked Euromonitor to conduct a market research for them, to be used in their IPO prospectus. so some part of this report will be shared, with the scope of what their agreement provide for.

The 'Juice in China' is a report for the whole market and everyone can buy a copy from Euromonitor. It should not be shared as city farmer stated.

I have removed a moderated post, which has a link to the report.

Euromonitor report is a paid service. We should respect the fruit of their effort. I do understand that the report isn't cheap, but under no reason we should distribute it freely, without authorization.

I reckon the company will published its report base on the Euromonitor report soon.

Regards
Moderator

[Oldman9]

Interesting war going on at Sharejunction between bluedogmeow and other forummers.

discussion points
>> Sino cost of debt
>> CB redemption
>> comparison between Sino, CMZ and Huiyuan. (Ebitda/Ebit comparison, trade receivables).

Hi Leeeta

thanks.

Interesting the Q&A between BDM and the other forummers.

How do we know who is right on Sino Cost of debt?
and quite surprising that Huiyuan's Ebitda/Ebit is under performing compared to Sino. I thought HuiYuan is doing well after selling of some of their idle plants. any comment on this by VBs?

cheers
Oldman9

[specuvestor]

Cost of equity is determined by share price movement defined by CapM, so cost of equity is always high for distressed, statistically. The only time I know unvested CFO care about share price is when he is given green light to issue equity or equity derivatives. Interest cost on debt on the other hand is real. Debt repayment is even more real which is why they invented virtual perpetuals so CFO can live in virtual world and not worry about maturity

Indeed the fat lady sings these 6 weeks. From TTA perspective it seems like it's just an opportunistic binary call option bet to them as well, from the tone of the TTA representative. It's not gonna kill them but good upside if real.

[Oldman9]

Cost of equity is determined by share price movement defined by CapM, so cost of equity is always high for distressed, statistically. The only time I know unvested CFO care about share price is when he is given green light to issue equity or equity derivatives. Interest cost on debt on the other hand is real. Debt repayment is even more real which is why they invented virtual perpetuals so CFO can live in virtual world and not worry about maturity

Indeed the fat lady sings these 6 weeks. From TTA perspective it seems like it's just an opportunistic binary call option bet to them as well, from the tone of the TTA representative. It's not gonna kill them but good upside if real.

Hi Specuvestor

Did not see you post here in this thread for quite a while.

What do you mean by " they invented virtual perpetuals so CFO can live in virtual world and not worry about maturity"? Are you saying they dont have to worry as long as they keep extending the bonds?

and as for the 6 weeks, are you referring to the form A submission or the CB expiry? I dont think its a binary option for either as long as the business is real. Ifs either up up nd away or stay stagnant here for a long time.

you thoughts?

cheers
Oldman9

[specuvestor]

Few months is nothing for value investing we focus on business not noise and nothing much has changed to "up" the thread With the fat lady singing so it is good time to watch the space and revisit. The chances are as good as a Grexit bet

Bond maturities force companies and CFOs on their toes and revisit their financial commitments. If you look at a lot of these distressed or attacked stocks, they coincides with debt repayments. If one doesnt have to repay perpetuals, whats there to worry? Yet it creates an irony because without principal repayment and refinance, we will lose the market's input on the company's credit well being.

And that relates to cashflow. If a company has tonnes of cash but chooses to refinance debt thats due, it is a red flag. Anyone can read sinoG balance sheet conjured by auditors. However the maturity or show-me-the-money proof of pudding is these 6 weeks. Debt repayment is almost always real cause creditors dont forget

A recent example of an attacked stock that show-me-the-money is LaBiXiaoXin in HK (formerly SGX listed China lifestyle) which recently repaid their debt in February. Its a good case study reference for SinoG if they are able to pay up. Else just hope TTA will average down.

That said if SinoG dont submit A1 form to reduce cost of the CB it also speaks volume and uncertainty, albeit smaller, continues to linger. The incentive framework is clear on this.