The following content was posted by reader 'Ethan999' in the NextInsight forum over the past 3 days.


jackhuang2.11Huang Yupeng, chairman & CEO of Sino Grandness, bought 600,000 shares on 21 Oct @52.2 cents and 800,000 shares @ $0.505 shares on the next trading day, Thurs (Oct 23). NextInsight file photo. Attended the company's briefing/lunch with UOB Kay Hian analysts.

- TTA chairman (Prayudh Mahagitsiri) called him during lunch offering his support.

It was an informal lunch briefing so, yes, Mr Huang was able to take the call after which he had informed us that the TTA chairman had called to offer his support, saying that he's seen it all before. Apparently they enjoy a good relationship as both men are able to communicate in their native dialect - Teochew.

- Frost & Sullivan's market research is conducted independent of company's figures

- Garden Fresh is sold at over 200,000 retails points in China. Newman9's purported research was only conducted in about 80 retail points which is about 0.04% of total retail points.

Naturally some retail points perform better than others but overall sales have been doing well - hence the company now has over 300 distributors, while the quality and size of the distributors have been going up. Naturally due to finite resources, as the Garden Fresh brand grows, some of the smaller distributors have to be let go


sinogrand_factory_bottlesSino Grandness' own factory in Sichuan opened in March 2012. Photos: Company.

- Company is considering letting analysts and/or media representatives visit their production plants

- IPO is still under process. Listing in HK these days is a lengthy process but the company is not in a rush as current cash flow needs are sufficient. Also, the company has a very good relationship with Goldman Sachs and the terms of the convertible bond agreement are that both parties can extend beyond June 2015 if it is mutually agreed upon.

Chairman is very confident that Goldman will seek to hold until IPO but even if they choose to redeem, company can use internal cash flow + bank borrowings (current gearing ratio is almost negligible while company has many pledgeable assets) to pay back convertible bondholders.

- Company's financials have been audited by big 4 auditors from convertible bondholders.

Overall I could see the chairman's dedication and confidence. Mr Huang has not sold a single share since IPO and has repeatedly purchased more during downturns and will now continue to purchase at current levels. Personally I will also be buying more.

CEO also mentioned they are registering a Garden Fresh subsidiary in Singapore and that in the near future 鲜绿园果汁(Garden Fresh fruit juice) will also be available in Singapore, and I believe, in Thailand and Malaysia too.


sg10At this Shenzhen Carrefour store in a May 2013 check by NextInsight, three top-selling Garden Fresh juices are flanked by two Want Want juices at left and a Minute Maid mixed juice on the far right. NextInsight file photo.

Recent story: SINO GRANDNESS: CEO flies to S'pore, assures analysts and investors
 

Comments  

0 #1 jackphang 2014-10-28 16:56
Although Huang Zong is not selling his shares, but his stake reduced to around 35% from 44% through private placements, if I remembered correctly. That means, if you are a shareholder that holds the stock since IPO, your shareholdings also be diluted by around 20%. If only Sino Grandness cash flow can be improved, otherwise I would foresee more placements / right issues to come if IPO of beverages subsidiaries fails by next year. Hopefully Huang Zong could help to improve his business cash flow together with CFO Mr. Goh.
Quote

Share Prices

Counter NameLastChange
AEM Holdings3.430-0.010
Avi-Tech Electronics0.265-0.010
Best World2.5300.010
Broadway Ind0.1080.001
China Sunsine0.465-
DISA0.0030.001
Food Empire0.735-
Fortress Minerals0.4000.025
Geo Energy Res0.320-
Golden Energy0.810-0.010
GSS Energy0.047-
InnoTek0.520-
ISDN Holdings0.6050.020
ISOTeam0.090-
IX Biopharma0.120-0.002
Jiutian Chemical0.081-
KSH Holdings0.340-
Leader Env0.0720.010
Medtecs Intl0.148-
Meta Health0.021-0.001
Nordic Group0.470-
Oxley Holdings0.143-0.002
REX International0.2150.005
Riverstone0.655-0.025
Sinostar PEC0.180-
Southern Alliance Mining0.610-0.015
Straco Corp.0.5000.020
Sunpower Group0.3950.020
The Trendlines0.098-
Totm Technologies0.1030.001
UG Healthcare0.176-0.003
Uni-Asia Group0.9050.005
Wilmar Intl3.960-0.070
Yangzijiang Shipbldg1.3000.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2468 guests and no members online