sino grandness - undervalued stock

Whoopee!

Sino Grandness is the Top Sizzler in this list "8 STOCKS That Inspire Investor Optimism For 2Q"

www.nextinsight.net/index.php/story-arch...ptimism-for-2q-2013-

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.

And I have recently looked closely as an interested investor wanting to write a cheque for another batch of Sino Grandness shares.

Well, the stock is unshakeable. The people saying goodbye are likely to be retail investors who already have made nice gains. Just take profit.

The buyers are likely to be longer term holders who are adding to their holding. Plus those who are only now entering the stock.

The liquidity is drying up ....

The company has done extremely well. However, the sales growth for 1Q were a little unexciting vis-a-vis 4Q in 2012.

Beverages did RMb239 mio (237 in 4Q2012).
Canned fruits (domestic sales): RMB 29.8 mil (25.8 in 4Q2012).

Rabbit needs a short rest. I will look out for its 2Q performance.

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.

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?