How's the management of this company ? Honest people unlike those S-Chips CEOs that run away ?
Not vested. From Lim & Tan;-
We are recommending a BUY on Sino Grandness as we understand that the company will be doing a voluntary quarterly reporting in the upcoming 3Q ended Sept ’10 results.
We believe this upcoming set of results would be very strong due to maiden contributions from their fruit and vegetable drinks business which management was quoted in The Edge as saying that this new business segment will grow exponentially.
From zero, management expects this new business to account for a significant 25-30% of this year’s
sales. Sino Grandness has built a new plant in Hubei to grow this new business which caters to the
domestic market.
Management is targetting Rmb200mln sales in 5 years from this new business. The Chinese government
is promoting domestic consumption in China and as fruits and vegetables is a healthy food source,
management intends to ride on the strong growth outlook going forward.
The company is also expected to benefit from US and European markets where consumers trade down to buy more in-house supermarket brands as the global economic environment remains uncertain.
Valuation is also undemanding at 4x PE.