China Animal Health

When it was 24 cents just last month, CIMB valued it at at 5.9x CY10 P/E against its 3-year core earnings CAGR forecast of 36.9%. Now it\'s 31 cents! Target price: 44 cents , which is much higher than Kevin Scully\'s 35 cents. CIMB saw stock catalysts from (1) fast track expansion through M&A of key vaccines producers, (2) dual-listing angle. Dual listing theme could further catalyse share price even without stating that valuation is compelling. www.nextinsight.net/content/view/2059/79/

Agreed. China Animal Healthcare is an ideal stock for HK dual listing. Maybe can do a \"Man Wah\", delisted at S$230m market capitalisation and listed again at S$1.2 billion market capitalisation in Hong Kong. huat huat huat...

The Board of Directors of the Company is pleased to inform shareholders that the Company intends to seek a dual primary listing on the SEHK, together with a public offering of new shares (\"HK Dual Listing\")..... Announced today! Like that, the stock price can only go up tomorrow.

Long awaited news of dual listing. Stock by right shouldnt run too much today as the market already was anticipating the dual listing after DBS Vickers issued a report on that in January 2010.....as rptd by nextinsight: www.nextinsight.biz/content/view/1913/79/

BT article published April 16, 2010 has interesting facts about this company (altho the article has a few errors, such as China Animal Healthcare not having paid any dividends since IPO). AGM WATCH China Animal may start paying dividends mid-year Chairman allows resolution on placement shares to be defeated By VEN SREENIVASAN CHINA Animal Healthcare could start paying dividends as early as mid-year if its expansion plans bear fruit. The company - which has not paid a cent since it was listed in 2007 - hinted at this during its annual general meeting (AGM) yesterday when asked why it was not making payouts despite strong profits, a significant cash hoard and a solid balance sheet with virtually zero debt. \'We are currently in an aggressive acquisitive expansion phase,\' said chairman and founder Wang Yangang, who flew into Singapore for the meeting. \'We have just acquired the capacity to scale up into high value-added biological vaccines. While this is happening, we want to conserve some cash for working capital needs.\' According to him, that faster-than-expected introduction of the new vaccines - used mostly on pigs against hand, foot and mouth disease, as well as the swine fever - could yield returns this year which the company could distribute to shareholders. \'Things have been moving fairly rapidly and we are happy with the progress,\' he said, referring to supply contracts clinched with regional municipal veterinary agencies across China. China Animal is one of only five animal vaccine producers in China - and the only private sector player. Regulations stipulate that all farmers in China must use these drugs on bred pigs. The company\'s four competitors are state-run agencies which use older-generation drugs. China Animal has made two major acquisitions in the past year, the latest of which was its 210 million yuan (S$42.3 million) purchase in January of Jianxiang Hemu Biological Technology, which produces a vaccine against the porcine reproductive and respiratory syndrome. For the year ended Dec 31, 2009, China Animal lifted full-year profit 14.2 per cent to 157.9 million yuan on a 13.8 per cent rise in revenue to 438.3 million yuan. It said it had about 200 million yuan in its kitty as at end-March. Mr Wang and his directors were also yesterday asked about plans for a dual listing in Hong Kong. Speaking to BT later, he said work on a dual listing began in December and the process is well advanced. He said the listing could be completed in six months, if all goes well. Asked why China Animal was seeking a second listing, he said: \'The Hong Kong market knows us better and will offer us a better valuation.\' China Animal has no peers here for comparison. But Mr Wang said that compared with its 14 times price-earnings (PE) multiple here, Shanghai-listed companies such as China Animal Husbandry Industry, Xinjiang Tiankang Animal Science Bio-Technology and Inner Mongolia Jinyu Group are commanding PEs of 40-50 times. During yesterday\'s AGM, shareholders questioned a resolution tabled by the company to sell placement shares at up to 20 per cent discount to the prevailing price. Shareholder Mano Sabnani asked why a company that is doing well and has a rising share price would want to offer such generous discount. Mr Wang conceded that the proposed discount is steep, but said it will give China Animal flexibility to attract \'a strategic global investor\' who can add value to the company and its stock price. After hearing out dissenting shareholders, Mr Wang abstained from voting and allowed the resolution to be defeated. But the company still retains the right to place out shares at up to 10 per cent discount, if necessary. Mr Wang, who has a 52 per cent stake, reassured shareholders that he is mindful of the \'dilution effect\' of any placement and said the company will take their interest to heart before making any such decision.

Posted by Kevin Scully on his blog today: I received a call from a subscriber today informing me about the volume and price performance of China Animal as he thought I was on the golf course. I was actually in the office. I told him it was due mainly to the update on its HK dual listing. The company announced today that it has appointed MacQuarie Capital HK as its sponsor for its HK dual listing. I added China Animal back to my Stock Pick list after it fell back to my original recommendation price of S$0.28 on May 28, 2010 - I had earlier asked investors to take some profit when it hit my price target of S$0.35. Other factors that could underpin its share price include: a) a good set of Q2-2010 results as its new acquisitions start to contribute fully b) a new institutional shareholder in Fidelity c) further acquisitions of licences (but this is purey speculative) d) undemanding valuations