DMG keeping its SOTP-derived TP of SGD1.74. :woohoo:
We value Sino Grandness using sum-of-the-parts (SOTP) valuation to derive TP of SGD1.74. Since our last post-roadshow note on 25Apr2013, stock price has risen by 23%. We still see further upside and re-iterate BUY.
Historically, the big jump in sales tends to happen from Q2 on-wards, particularly because the trade fair was conducted at the end of March.
To the extent that the trade fair provides a good indication of sales growth, it is projected to experience roughly 50% increase in beverage sales and 100% increase in canned fruit sales.
I'm quite optimistic that Garden Fresh alone can achieve a net profit of about 250 million rmb in FY 2013, as the company will want to go all out to achieve this target for the minimum dilution agreed with convertible bond holders, and of course to maximize funds raised through the Hong Kong IPO. If Garden Fresh is listed at 10-15 times earnings, and earnings are 250 million rmb, that would imply a market cap for Garden Fresh of 500 million to 750 million SGD.
Still holding onto this one from 40 cents. Getting close to 400% gains now.
The following user(s) said Thank You: Mel, pine, Rich
Ethan999, didn't Sino Grandness propose a bonus share issue? Why hasn't there been any update? If and when it is executed, do you think the bonus issue will have a positive impact on the stock price?