Sino Grandness

Sino Grandness

Postby winston » Mon Oct 04, 2010 8:21 pm

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.
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Re: Sino Grandness

Postby winston » Wed Oct 06, 2010 7:54 pm

Not vested.

From Lim & Tan:-

Stirling Coleman will place out 20mln new shares in Sino Grandness at 35 cents each to raise S$6.7mln. This represents a 5.4% discount to its last traded price of 37 cents.

S$2mln will be earmarked for the initial construction cost for the new plant in Hubei Province and S$4.7mln as working capital for the expansion of their new beverage business in China.

The company also has existing cash of S$7mln to help fund its working capital for the existing vegetable business.

The 20mln new shares represent 7.5% of the enlarged outstanding shares of 265.172mln.

Post dilution, its market cap would from S$90mln to S$98mln, putting its 2010 PE at a still reasonable 4.9x.

Growth is expected to remain healthy next year at 20-25% on the back of robust contributions from the fruits and veg drink business in China as well as steady demand for their core vegetable export business.

Weakness attributable to the placement would be a buying opportunity.
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Re: Sino Grandness

Postby winston » Thu Jan 05, 2012 3:47 pm

not vested

The stock of Singapore-listed Sino Grandness surged 6.6 percent after the company said it plans to double its annual output capacity for bottled juices to around 140,000 tonnes from 70,000 tonnes.

Sino Grandness manufactures and distributes bottled juices as well as canned fruits and vegetables in China.

Source: Reuters
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Re: Sino Grandness

Postby behappyalways » Fri Oct 24, 2014 1:31 pm

I am sceptical of S-chips....with the new share placements they seems to be 'sucking' more cash........I am sceptical of companies asking for endless round of cash......is it as profitable as claimed?

SINO GRANDNESS: CEO flies to S'pore, assures analysts and investors
http://www.nextinsight.net/index.php/st ... -investors
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Re: Sino Grandness

Postby behappyalways » Tue Oct 28, 2014 10:13 am

not vested

The issue of new shares(cost them around $2m out of $52m) meant the company could have use part of the proceeds to buy back some of the CB

Take a look at Huiyuan 1h2014 result and make comparison...see if Sino's 1h2014 makes sense.....

http://www.huiyuan.com.cn/upload/access ... 646155.pdf


huiyuan's juice segment is about 75% of total sales....which is around RMB1.5b. Sino's beverage sales is around RMB900m. So for every $2 of fruit juice(apple, orange...etc etc) by Huiyuan, Sino is able to sell $1 of loquat juice(assuming bulk of the sales are due to loquat)....does it make sense???? Didn't know loquat juice is so popular.....

Look at Huiyuan's leadership in 100% juice concentrate and 26% to 99% juice concentrate segment....where does Sino's product fits in? If they are in these 2 segments then something is wrong somewhere....because Sino's RMB900m sales does not fit in....maybe Sino's product could be in the below 25% segment....?????

I took a glance at Sino's annual report. There is no footnote on how they accounted sales. Do they account for sales when end buyers bought their product or when they deliver to shops (hence resulting in increasing receivables). ?????

These are a few questions in my mind.....
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Re: Sino Grandness

Postby behappyalways » Wed Oct 29, 2014 11:19 pm

not vested

(Sino needs the $$$.....)

The Issue Price of the Placement Shares as set out in clause 2.1 of the Subscription Agreement will be adjusted from S$0.61 for each Placement Share to the following:
(a) S$0.50 per Placement Share; or
(b) the volume weighted average price per Share traded on the SGX-ST on the last market day immediately preceding the date of Completion,

PLACEMENT – SUPPLEMENTAL DEEDS TO SUBSCRIPTION AGREEMENTS
http://infopub.sgx.com/FileOpen/Sino_Gr ... eID=320992
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Re: Sino Grandness

Postby behappyalways » Sat Feb 28, 2015 8:20 pm

Caution

FY2014
http://infopub.sgx.com/FileOpen/SGFIG%2 ... eID=336533

The maximum redemption payment of the outstanding 2011 Bond is RMB183.8 million at maturity on 30 June 2015. The maximum redemption payment of the outstanding 2012 Bonds is RMB466.6 million at maturity on 25 July 2015. (From FY3Q2014 Result)

The company might not have the cashflow to redeem the bonds.......maybe a rights issue. There are also many issues that I see in this company.....Their 'sales', their depreciation rate and etc etc....
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Re: Sino Grandness

Postby behappyalways » Tue Mar 03, 2015 8:47 am

I was reading a posting in sharejunction where someone posted that Sino-grandness's spending on advertising is proportionally less than sales compared to Hui Yuan. Over the years, I found that one way to find fraud on a company is to do a relative comparison. Does it make sense if company in F&B sector spend a significant less amount on advertising yet achieved around 40% sales of Hui Yuan? IF Hui Yuan is an established F&B company that sells their products to big organisations then logically their advertising to sales ratio should be lower and not higher. You(Sino G) are an up and coming company and your customers are basically end-consumers so your advertising to sales should be higher to promote your new products

Anyway I am not a shareholder so for those vested or intend to be vested, my suggestion is to download Hui Yuan result and do a relative comparison to Sino G and decide for yourself.

Anyway the convertible bonds (The maximum redemption payment of the outstanding 2011 Bond is RMB183.8 million at maturity on 30 June 2015. The maximum redemption payment of the outstanding 2012 Bonds is RMB466.6 million at maturity on 25 July 2015. (From FY3Q2014 Result)) is due soon. I think it will be hard for them to borrow from banks for reasons I do not know(if it is easy they would not need to issue bonds and share placement). So the question is where is the company gonna find the cashflow to pay off the bonds? From receivables? from asset sales? or rights?
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Re: Sino Grandness

Postby behappyalways » Tue Mar 03, 2015 4:01 pm

Hui Yuan ratio for 1h2014 was 364/1966m while Sino-G ratio for 2013(annual report) is 60(35+24.8)/2261m


behappyalways wrote:I was reading a posting in sharejunction where someone posted that Sino-grandness's spending on advertising is proportionally less than sales compared to Hui Yuan. Over the years, I found that one way to find fraud on a company is to do a relative comparison. Does it make sense if company in F&B sector spend a significant less amount on advertising yet achieved around 40% sales of Hui Yuan? IF Hui Yuan is an established F&B company that sells their products to big organisations then logically their advertising to sales ratio should be lower and not higher. You(Sino G) are an up and coming company and your customers are basically end-consumers so your advertising to sales should be higher to promote your new products

Anyway I am not a shareholder so for those vested or intend to be vested, my suggestion is to download Hui Yuan result and do a relative comparison to Sino G and decide for yourself.

Anyway the convertible bonds (The maximum redemption payment of the outstanding 2011 Bond is RMB183.8 million at maturity on 30 June 2015. The maximum redemption payment of the outstanding 2012 Bonds is RMB466.6 million at maturity on 25 July 2015. (From FY3Q2014 Result)) is due soon. I think it will be hard for them to borrow from banks for reasons I do not know(if it is easy they would not need to issue bonds and share placement). So the question is where is the company gonna find the cashflow to pay off the bonds? From receivables? from asset sales? or rights?
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Re: Sino Grandness

Postby behappyalways » Sun Mar 15, 2015 2:54 pm

Some interesting paragraphs by The Edge Singapore on Sino Grandness

Now, Sino Grandness is giving conflicting signals on the listing of Garden Fresh too. On the one hand, Huang said he is confident of meeting the new deadline. "I feel it's possible to submit by July. I have the ability to do this," he says. On the other hand, sources within the company say negotiations are underway with convertible bondholders on a possible second extension of the deadline to list Garden Fresh.

(Interview with Chalermchai Mahagitsiri)

What about the allegations that Sino Grandness has been inflating its revenue and earnings? Chalermchai says TTA has done its due diligence on the Chinese company and concluded that the risks are "manageable". He also points out that TTA's investment in Sino Grandness in absolute terms is not all that big, being roughly equivalent to the cost of a dry bulk vessel. Yet, the upside from the investment is potentially enormous, as it would pave the way TTA and PM Group into China in a big way. " It's a growing consumer market of 1.4 billion [people]," he says. " We are exchanging one dry bulk vessel to learn this business. And, the company we invested in is profitable, if you believe in the numbers."
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