by winston » Thu Jan 21, 2010 8:39 pm
Deadline: 8am Tomorrow
DJ MARKET TALK: Meike Strong Sales Eyed; SinoPac Targets HK$1.71
1616 [Dow Jones] SinoPac suggests investors subscribe to Meike (0953.HK) IPO, with shares expected to start trading in HK Feb. 1, as its apparel sales have been growing rapidly since 2006 and recorded CAGR of 406% in 2006-2008.
In addition to China market, Meike also exports its products to overseas markets. Notes, Meike relatively small player in sportswear sector with limited history; taking small market share, less attractive profitability into consideration, house values Meike at 16.6X FY09 P/E, representing around 10% discount to HK-listed peers' P/E in view of its weak market position; sets target at HK$1.71; Meike plans to raise up to HK$357.5 million by issuing 250 million shares at HK$1.20-HK$1.43 indicative range.
Source: Dow Jones Newswire
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