You may use google translate this page service to roughly read up what's inside:
Timex (Holdings) (01298) chairman Lo Yi Qiang: detection "civilians" to revive confidence in food safety
Securities Times 2014-09-23 [ large ] [ in ] [ small ] Print
Securities Times reporter recently visited the visit focused on the development and marketing of scientific instruments Timex Holdings (01298.HK), chairman Lo Yi Qiang told reporters that domestic food safety issues frequently, on the one hand the need to improve the regulatory approach, on the other hand the needs of domestic enterprises to enhance detection technology to reduce costs, so that detection equipment gradually civilians, and ultimately the whole industry popularity.
Food testing concern
is food safety issues in 2014 frequent year, the issue has erupted McDonald KFC chicken event, Zhejiang poison capsule scandal, Taiwan waste oil into the mainland events. Since the solutions food safety issues ahead of the general need for quality testing, A shares, Centre Testing, Skyray Instrument, Da An Gene, Invengo and other stocks, in the event of food safety outbreaks are subject to more attention.
However, the same scientific instruments in the food testing company Techcomp mainland investors not to be known. Reporter field interviews found that day America Holdings was established in 1988, than most of mainland enterprises set up time to detect early. The company is mainly engaged in surface science, analytical instruments, life science equipment and laboratory equipment design, development, manufacturing and distribution and so on.
After listing the motherboard Techcomp in 2004 in Singapore SGX, 2011年12月21日also listed on the Hong Kong Stock Exchange Main Board, to become China's analytical instrument industry, the first company listed on the Main Board in major international markets. Subsequently, the company gradually expand the business, set up offices in Beijing, Shanghai and other 15 cities, R & D base. Although Techcomp and food testing business concepts are closely related, but the company's shares did not get enough attention in this year's market, food safety event.
In this regard, biochemical strong professional background of work and rest, said: "Timex is a professional to do scientific instruments listed companies, especially in the area of food safety, we meet enterprises in the Mainland, the government has done a lot of test items, such as participation in melamine, plasticizer testing, etc., in the industry has a good reputation, but relatively low-profile in the capital market, the main emphasis on the development of students within the enterprise. "
It is understood Techcomp listed in Hong Kong since 2011, in addition to the first IPO in the capital market has never been re- finance, R & D and sales during the project mainly rely on its own funds. However, strong work and rest, admits: "The existing business revenue mainly from mainland China market, the future of the company's investment focus will continue to rely on the mainland, does not rule out industrial cooperation and capital acquisitions in the Mainland."
Why talk about focus on food safety testing business, work and rest Qiang told reporters: "Food safety testing concerns public safety and national image, with a public value; addition, the detection business market prospects, profitability levels are very generous."
In fact, with Food safety issues are more and more attention, testing the market demand is really growing fast. According to the "national food safety regulatory system," second five "plan", food contaminants and harmful factors in future monitoring will cover all county-level administrative regions, monitoring network expanded to 2870, the market scale will reach 20 billion yuan, an average annual compound growth rate of more than 50%.
It is based on good market demand, many domestic enterprises profitability detected significantly more than other sectors. Data show that the last three years, gross margin domestic detect the leading measurement testing were stable at 65% -70% level, testing the industry average price-earnings ratio of 63 times. In contrast, the gross margin Techcomp relatively moderate, has been listed gross margin stable at 30% -35%, the current price-earnings ratio of 17 times.
Lo Yi Qiang said: "The level of earnings was mainly the valuation differences between the Mainland and Hong Kong investors for stocks; profitability level of the day with the United States to strengthen its R & D investment, costs related to higher levels." According to reports, in recent years Techcomp has acquired in Europe and the United States of four scientific instruments company, while access to high-tech, but also increased the company has invested in the production of research and development.
"The reason to strengthen research and development, because we want to go the high-end consumer market, while covering research and development costs through high-end consumer; on the other hand, the overseas high-end technology coupled with domestic low production costs, solve testing equipment as a whole expensive, the utility is not high. "Lo Yi Qiang said.
For the future to develop the domestic market, labor Yi Qiang said: "Domestic food testing market is large, especially dairy, liquor, consumer goods and other industries, in the future we hope to gradually reduce the overall cost of the popularity of high-end testing equipment, civilian of Imagine, when the domestic dairy farmers staffing a detector, reputation and confidence in China's dairy industry is not able to revive? "
On a combined basis, the transactions represent an opportunity for the Shareholders to
realise a part of or their entire investment in the Company for an aggregate cash exit equal to HK$4.107 per Share.