02-03-2015, 11:33 AM
Analyst view on the company latest report. The focus still on the IPO, and fund raising if not materialized. The company has subjected to too many uncertainties, which Mr. Market hates...
(not vested)
Sino Grandness shares sink on 4Q2014 loss, fundraising concerns
SINGAPORE (March 2): Shares of Sino Grandness Food Industry Group ( Financial Dashboard) sank to their lowest in more than two years after the Shenzhen-headquartered canned food maker turned in a 4Q2014 net loss of RMB64 million ($14 million), reversing a profit of RMB32.5 million a year earlier.
At 10:12am (0212 GMT), the stock was down 20.9% at 34 cents, off an early low of 33 cents, a level previously reached in January 2013.
Sharply higher distribution, selling and finance costs, as well as losses in the fair-value of the convertible bonds issued by its Hong Kong unit Garden Fresh, weighed on its 4Q2014 bottom line.
Overseas sales of its canned products also fell substantially during the quarter, down 48% at RMB70.4 million.
The results brought its full-year earnings to RMB233.4 million, down from RMB287.7 million in 2013.
The decrease was due to higher operating and finance costs and changes in the fair value of Garden Fresh's convertible bonds.
"As Garden Fresh's IPO deadline of July 2015 draws near, Sino Grandness booked RMB34.9 million provisions for its convertible bonds," Maybank Kim Eng analyst Wei Bin wrote in a note today.
"These may face redemption pressure in the next few months," he said, adding that the company may need to issue at least 30% more equity to repay its convertible bond holders if it has no other sources of funds.
Wei, who has a "hold" call on the stock, cut his price target to 45 cents from 76 cents, valuing it at 3.5 times projected 2015 earnings.
http://www.theedgemarkets.com/sg/article...g-concerns
(not vested)
Sino Grandness shares sink on 4Q2014 loss, fundraising concerns
SINGAPORE (March 2): Shares of Sino Grandness Food Industry Group ( Financial Dashboard) sank to their lowest in more than two years after the Shenzhen-headquartered canned food maker turned in a 4Q2014 net loss of RMB64 million ($14 million), reversing a profit of RMB32.5 million a year earlier.
At 10:12am (0212 GMT), the stock was down 20.9% at 34 cents, off an early low of 33 cents, a level previously reached in January 2013.
Sharply higher distribution, selling and finance costs, as well as losses in the fair-value of the convertible bonds issued by its Hong Kong unit Garden Fresh, weighed on its 4Q2014 bottom line.
Overseas sales of its canned products also fell substantially during the quarter, down 48% at RMB70.4 million.
The results brought its full-year earnings to RMB233.4 million, down from RMB287.7 million in 2013.
The decrease was due to higher operating and finance costs and changes in the fair value of Garden Fresh's convertible bonds.
"As Garden Fresh's IPO deadline of July 2015 draws near, Sino Grandness booked RMB34.9 million provisions for its convertible bonds," Maybank Kim Eng analyst Wei Bin wrote in a note today.
"These may face redemption pressure in the next few months," he said, adding that the company may need to issue at least 30% more equity to repay its convertible bond holders if it has no other sources of funds.
Wei, who has a "hold" call on the stock, cut his price target to 45 cents from 76 cents, valuing it at 3.5 times projected 2015 earnings.
http://www.theedgemarkets.com/sg/article...g-concerns