Southern Packaging stock surges on possible land sale

ImageRocketing land prices in China may land the company with a windfall on factory land says COO Pu Jinbo.
 

SOUTHERN PACKAGING’s share price rocketed into action this month as the market caught on to the possibility of the company - in which Singapore popiah king Sam Goi has a stake - unlocking the land value of its Nanhai factory.

The company is negotiating an asset restructure that could possibly result in the exchange of its Nanhai factory land for land space of up to 5 times the size in non-core central districts, said COO Pu Jinbo in a telephone interview with NextInsight.

From illiquid trades at the 12.5-15-cent range on volume of no more than 46,000 shares for the entire month of April, Southern Packaging shares suddenly closed a third higher at 20 cents on 2 May.

For the past seven trading days this month, the stock held steady at around 25 cents, with average volume exceeding 2 million shares daily.

Shortly after its stock price began running, the company made an official statement revealing that CEO Pan Shun Ming had agreed to sell his privately-owned land parcels situated next to Southern Packaging’s Nanhai factory.

Mr Pan’s agreement with the acquiring parties included a clause requiring him to procure for them the land on which Southern Packaging’s Nanhai factory is situated.

Negotiations are likely to take another two months, figured Mr Pu.

The maker of printed plastic bottles and bags for global fast moving consumer goods manufacturers completed a new factory in Shanghai just last month.

Costing Rmb 15 million, the Shanghai factory has capacity to produce 100 million PET bottles a year.

It is equipped with 13 production lines and occupies 5,450 sq meters.

Image

For more on Southern Packaging, read:


SOUTHERN PACKAGING: FY07 net profit soars 46% to S$6.7m

SOUTHERN PACKAGING wows global clients with top-tier facilities

SOUTHERN PACKAGING and the Sam Goi-Super Coffeemix connection


Share Prices

Counter NameLastChange
AEM Holdings4.130-0.040
Avarga0.280-0.005
Avi-Tech Electronics0.395-
BH Global0.325-
China Sunsine0.490-0.005
Food Empire0.7600.010
Fortress Minerals0.390-0.010
Golden Energy0.3050.005
GSS Energy0.072-
InnoTek0.810-0.010
ISDN Holdings0.645-0.010
ISOTeam0.1180.005
IX Biopharma0.230-
KSH Holdings0.345-0.005
Leader Env0.077-0.002
Medtecs Intl0.405-0.010
Moya Asia0.0670.003
Nordic Group0.3500.005
Oxley Holdings0.205-0.005
Procurri0.300-
REX International0.197-
Riverstone0.9200.030
Roxy-Pacific0.470-
Southern Alliance Mining0.9850.005
Sri Trang Agro1.350-
Straco Corp.0.475-
Sunpower Group0.620-0.005
The Trendlines0.1000.002
UG Healthcare0.3550.005
Uni-Asia Group1.0600.010
Wilmar Intl4.080-0.010
Yangzijiang Shipbldg1.4300.020
Yinda Infocomm0.225-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 326 guests and no members online