Techcomp chart: BloombergTECHCOMP HOLDINGS Ltd (HK: 1298; SGX: T43) has entered into an agreement to acquire the remaining interest in the Jingke Companies, which are mainly engaged in producing and trading analytical and laboratory instruments, for 13.31 million yuan.The purchaser -- Glory Union Investments Ltd -- a wholly-owned subsidiary of Techcomp, entered into the agreement with the vendor, INESA Electron (Group) Co Ltd.
The 13.31 million yuan consideration, which is at a sharp discount to the aggregate net asset value, will be funded by internal resources of the Group and/or bank borrowings.
The appraised net asset values of Jingke Scientific and Jingke Trading as at 30 June 2013 were RMB27 million and RMB147,000, respectively, as appraised by an independent valuer.
Richard Lo (left), CEO of Techcomp, with Singapore analysts. NextInsight file photoAssets to be acquired under the Jan 17 agreement:(i) 49% equity interests in Jingke Scientific and (ii) 51% equity interests in Jingke Trading.
The completion of the acquisition is expected to take place on or before 30 April 2014.
Following that, the financial results of Jingke Trading will be consolidated with the results of the Techcomp Group, while the financial results of Jingke Scientific will continue to be consolidated with the results of the Group but to a greater extent from 51% to 100%.
The companies were loss-making in 2012 to the tune of US$865,000 and US$332,000, respectively. Their 2012 revenue were US$5.5 million and US$4.7 million, respectively.
For the first 9 months of 2013, Techcomp reported net profit of US$1.9 m, down 19.7% year-on-year.
Backed by a strong research team, Techcomp (Holdings) Ltd is China’s leading manufacturer of analytical & healthcare equipment, with cutting edge technological patents in analytical instruments, life science equipment and laboratory instruments. The Techcomp brand of analytical instruments is used in laboratories for diverse industries ranging from materials analysis and testing to pharmaceuticals, biotechnology, medicine, food and beverage, and to forensics.
GUANGDON YUEYUN TRANSPORTATION Issues Positive Profit Alert
Guangdong Yueyun Transportation Company (HK: 3399) has issued a positive profit alert for its financial performance for 2013, saying it expects to record an increase in net profit of approximately 80%.
Yueyun Chairman Liu Wei with the "Listed Company with Most Growth Potential" trophy won in Hong Kong in December. Photo: Ta Kung PaoThe South China-based transportation play had reported net profit of 72.5 million yuan in 2012.The expected increase in the 2013 bottom line was mainly attributable to:
(i) an increase in profit from the Group’s road transportation business as a result of the Group’s optimization of resources and increased adaptation of LNG-fueled vehicles that lowered costs;
(ii) an increase in profit from the Group’s material logistics services business as a result of increased revenue;
(iii) an increase in profit from the Group’s expressway service zones business as a result of additional service zones being put into use, and;
(iv) an increase in profit from the Group’s operation of the Tai Ping Interchange as a result of the actions led by Guangdong Provincial Communication Group against the evasion of tolls by vehicles.
Yueyun stock has had a sizzling run for 2 consecutive years. At HK$3.02, it currently trades at 9.7X trailing PE for a market cap of HK$1.22 billion. Chart: FT.comMeanwhile, the company has agreed to acquire the remaining 1.6% equity interest in Southchina Logistics Enterprise for 2.85 million yuan.
Upon completion, Southchina Logistics Enterprise will become a wholly-owned subsidiary of Yueyun.
Yueyun said the acquisition will allow it to facilitate the development of the material logistics business, which is in line with Yueyun’s strategic development needs.
Guangdong Yueyun Transportation Co Ltd is principally engaged in the provision of motor vehicle transportation and auxiliary services, integrated logistics services and expressway-related services. It was founded in 1999 and listed on the Hong Kong Stock Exchange in 2005.
