BBMG 2009

[winston]

Vested.

DJ MARKET TALK: Citi Starts BBMG At Buy; Sets Target At HK$10.58

1553 [Dow Jones] STOCK CALL: Citigroup likes BBMG Corp. (2009.HK) on acquisition of cement mills, rising cement price in Hebei and price-cap housing projects that deliver high margin and look immune from affordability worries or policy noises.

"BBMG is the only cement play with a concrete acquisition pipeline." House starts BBMG at Buy, target set at HK$10.58 based on sum-of-the-parts valuation, by applying 20% discount to property NAV, 15.2X P/E for cement and 13.3X P/E for building materials.

Source: Dow Jones Newswire

[winston]

Sold all my position in BBMG today:-

1) Ran up from around 7.70 to 8.54 today - a 10% move

2) No catalyst other than the Citi report above

3) The revenue growth is only 7% and the PE is now about 13

4) Am paring down my exposure in an uncertain market

[kennynah]

wah.....can buy a ton of macdonald's happy meals loh.... congrats !!!

[winston]

Not vested. Revenue growth less than expected at 7%. Execution Risk on Capacity Increase ?

DJ MARKET TALK: ICBCI Starts BBMG At Buy; Sets Target At HK$10.00
Dec 22, 2009

1158 [Dow Jones] STOCK CALL: ICBC International starts BBMG Corp (2009.HK) at Buy, target at HK$10.00 (15X FY10 P/E).

"As a regional leader, we expect BBMG to benefit from a more balanced demand-supply outlook in the cement industry, as well as more M&A opportunities with the speed up of industry consolidation."

Tips BBMG could register impressive core profit CAGR of 31.4% in FY09-FY11, given capacity expansion for its building materials to meet better product demand growth, with strong property sales and rental income as other key drivers.

Source: Dow Jones Newswire

[winston]

Not vested.

HONG KONG ECONOMIC JOURNAL

Building materials maker BBMG Corp (2009.HK) said it had agreed to acquire cement and building materials assets for a total of 1.6 billion yuan ($234.4 million).

[winston]

Not vested.

DJ MARKET TALK: Citi Raises BBMG Target To HK$11.70 Vs HK$10.65

1209 [Dow Jones] STOCK CALL: Citigroup raises BBMG Corporation (2009.HK) target to HK$11.70 vs HK$10.65, based on sum-of-the-parts valuation with 20% discount given to NAV of property-related assets, and fair-value forward P/E of 15X assigned to cement and 13X to building materials.

Notes it recently announced acquisition of cement lines, Shanghai Sanming Building Material and Dacheng Property Development expected to boost its FY10 earnings by 22% and NAV by 23%. Keeps at Buy. Stock +1.5% at HK$8.32.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: JPM Ups BBMG Target To HK$10.80; Keeps Overweight


1248 [Dow Jones] STOCK CALL: JPMorgan raises BBMG Corporation (2009.HK) target to HK$10.80 from HK$10.30 after company entered into several asset injection agreements with its state-owned parent company.

Says with total cost of CNY1.6 billion, injected assets cover all of BBMG's businesses - cement, property and building materials. Adds this M&A is one of major catalysts house has been expecting, given its relatively low injection prices and enhancement to company's solid earnings growth.

Notes BBMG is broker's top pick in Greater China cement universe given its stronger earnings growth, relatively cheap valuation, unique M&A story. Keeps Overweight call; stock last +1.2% at HK$8.30.

Source: Dow Jones Newswire

[winston]

Building firm still bullish by Sophie He and Derek Yiu

Tuesday, April 20, 2010

BBMG Corporation (2009) - a building materials maker and property developer - is optimistic that mainland property prices will rise steadily this year, despite government curbs on the sector.

"Our property development projects are all in first-tier cities where demand exceeds supply," said chairman and executive director Jiang Weiping.

Jiang said the selling price of its residential properties has not gone down since tighter measures were launched to cool the real estate sector.

Property development contributed 31 percent of BBMG's total revenue of 11.7 billion yuan (HK$13.3 billion) and 36 percent of its total gross profit of 3.26 billion yuan.

The company had land reserves of 5.59 million square meters as of the end of March and is planning to increase its land bank.

Jiang said the average cost of its land is 3,350 yuan per square meter while the gross profit ratio for property development is more than 33 percent.

BBMG's capital expenditure was 4.5 billion yuan for 2009, and a significant increase is expected this year. Jiang said its cash in hand, bank credit and the medium- term notes it plans to issue will amount to 2.3 billion yuan.

This is enough to support its capital expenditure. http://www.thestandard.com.hk/news_deta ... 00420&fc=2

[winston]

Not vested.

DJ BBMG: To Buy Stakes, Assets From Parent, Affiliates For CNY2.65 Bln

HONG KONG (Dow Jones)--Chinese building materials producer BBMG Corp. (2009.HK) said Monday it will acquire stakes in cement plants and building materials firms and related assets from its parent and affiliates for a total of CNY2.65 billion.

BBMG, the largest cement supplier in Beijing by sales, said in a statement it will acquire stakes in 16 firms and land use rights to two sites in Beijing.

Source: Chester Yung, Dow Jones Newswires

[winston]

Not vested.

DJ MARKET TALK: UBS Keeps BBMG At Buy; Targets HK$9.55

1141 [Dow Jones] STOCK CALL: UBS notes BBMG (2009.HK) has meaningful exposure to affordable housing projects; house estimates over 30% of BBMG's land bank is allocated to affordable housing projects, and most of the projects would be completed in 2010, 2011.

Accordingly, expects affordable housing development to account for 66%, 46% of BBMG's Gross Floor Area pre-sales in 2010, 2011, respectively.

Keeps stock at Buy due to defensive quality of affordable housing exposure; targets HK$9.55 based on SOTP valuation methodology. Stock +0.1% at HK$7.90.


Source: Dow Jones Newswire