Zhongmin Baihui Retail Group

[Nick]

ZHONGMIN BAIHUI SIZZLES ON DEBUT

- Shares Close 25% Above Offer Price

http://info.sgx.com/webcoranncatth.nsf/V...E00360A79/$file/PressReleaseZhongminBaihuiSizzlesOnDebut20Jan2011.pdf?openelement


About the Company:

Zhongmin Baihui is principally engaged in the ownership and operation of the “ 中闽百汇”
department store in Xiamen City, Fujian Province, the PRC.

The Xiamen Store is located in the commercial centre of Xiamen City, strategically situated at a
transportation hub where the bus terminals (to both within and outside Xiamen City), bus rapid
transit and the high speed train terminal (to various major cities in the PRC) are located. It is one
of the largest underground retail malls in Fujian Province and offers a wide range of quality
merchandise and customer-oriented services catering to middle to high level income bracket
consumers. International brands featured in the department store include BreadTalk, Nike, Adidas,
Bossini and Baleno.

The Group also manages six other department stores under the “中闽百汇” brand name in
Quanzhou and Zhangzhou Cities in Fujian, the PRC.

[Herodot]

I look at the Prospectus and i see that the company made bigger losses every year!
-5993000 RMB in 2009, -8844000 RMB in 2010, they never made money! They have negative equity!
Why do people rush for this company??

[Nick]

It is interesting to note that in less than 3 months since its IPO (Jan 2011), its share price has more than doubled from its issue price of 30 cents to yesterday 64 cents !

It must also be noted that the Management consist primarily of Singaporeans. So not really a S Chip.

[Nick]

In 3 months since its listing, the share price has increased by a whooping 300% from 30 cents to close at 89.5 cents today !

[Nick]

SGX has issued a trading query today. The share price rose 11% today to $1.10 with a decent volume of 1.4 million shares. It is definitely the best performer of 2011 having risen from its issue price of $0.30 in 20 Jan 2011 to $1.10 today. It will be interesting to see what plans the company have going forward and its earning reports.

[Musicwhiz]

SGX has issued a trading query today. The share price rose 11% today to $1.10 with a decent volume of 1.4 million shares. It is definitely the best performer of 2011 having risen from its issue price of $0.30 in 20 Jan 2011 to $1.10 today. It will be interesting to see what plans the company have going forward and its earning reports.

I agree it's all well and good if you are vested at IPO price. But one has to ask if the share price may have overshot its fundamentals? Is there any justification for the nearly 400% increase in the share price since listing?

[Nick]

SGX has issued a trading query today. The share price rose 11% today to $1.10 with a decent volume of 1.4 million shares. It is definitely the best performer of 2011 having risen from its issue price of $0.30 in 20 Jan 2011 to $1.10 today. It will be interesting to see what plans the company have going forward and its earning reports.

I agree it's all well and good if you are vested at IPO price. But one has to ask if the share price may have overshot its fundamentals? Is there any justification for the nearly 400% increase in the share price since listing?

Share price rose 11% today to close at $1.77. Looks like it is a 600% increase in share price over 4 months haha !

[Musicwhiz]

Haha no worries Nick, there will always be companies that we "missed". Best is to concentrate on those which we understand well and which we feel are under-valued.

Cheers.

[Vseeker]

Invitation in respect of 30,000,000 New Shares by way of placement (“Placement Shares”),
at S$0.30 for each Placement Share, payable in full on application.

The spread of placees for the Placement Shares is as follows:-

Range of Placement [/u]
Shares ('000) applied for :: Number of placees
**1 to **9 = 49
*10 to *49 = 169
*50 to *99 = 33
100 to 499 = 84
500 to 999 = 5
1000 & above = 6

Total number of Placees = 346 ONLY !!!

Post-IPO, total issued shares = 196.32m shares, comprising
i) all 30m new IPO shares landed up with only 346 placees shareholders
ii) balance 166.32m shares are controlled by 6 persons - all are either Directors of the Company, or their immediate relatives
Moratorium: 6 months after listing date - can sell up to half of their share holdings, NO restriction after 12 mths.


The following table illustrates the dilution per Share as at 31 August 2010:-
Issue Price per Share = s$0.30
Proforma NAV per Share based on the pre-Invitation share capital of 166,320,000 Shares = s$0.009

Proforma NAV per Share after the Invitation = s$0.05 base on 196.32m issued shrs


Post-IPO newsflow
21-Jan-2011: ZHONGMIN BAIHUI SIZZLES ON DEBUT Shares Close 25% Above Offer Price

28-Feb-2011: Release its results for FY ending December 2010
...............for FY ended Dec2010: Revenue = Rmb80.915m, Loss after tax of (Rmb7.084m)
...............for FY ended Dec2009: Revenue = Rmb*0.333m, Loss after tax of (Rmb5.909m)


Mkt closing price on Fri (20-May2011) = $1.77, so Mkt Cap now = $347m !!! .
Bottomline ==> just another Accident Waiting to happen...

[Nick]

Precisely...I am very curious why the price ran up sharply for more than a quarter of a year when the historic financial performances is nothing wonderful. Perhaps, FY 2011 will be the year of huge profit growth when the departmental stores are fully operational ? Just very curious hahaha ! Then again, people could just be trying to chase it higher and higher hoping to get off before the clock strikes 12.