Man Wah 1999

[winston]

Man Wah Holdings will join in tomorrow to reap up to HK$3.4 billion.

Sources said the institutional tranche of Man Wah, the sofa manufacturer that owns the mainland's largest recliner sofa brand "Cheers," was fully covered


Source: The Standard HK

[winston]

Sofa maker stays bullish over listing by Beth Ye, The Standard HK:-

Listing candidate Man Wah Holdings' international tranche has been fully covered, according to market sources.

But analysts say retail investors may not be too enthusiastic because the sofa maker is not in a sector such as automobiles or household appliances, which has state support.

They said Man Wah's listing performance may not match Huiyin Household Appliance whose offering has locked in more than HK$10 billion.

Yangzhou-based Huiyin was oversubscribed at least 190 times.

"Man Wah is competing with other manufacturers for IPO money at the same time," said Louis Wong Wai-kit, director of Phillip Securities.

And KGI Asia chief operating officer Ben Kwong Man-bun said retail investors may not pay attention to Man Wah because it is a furniture maker.

However, chairman and managing director Wong Man-li is bullish on investors' response, saying the firm's market value jumped more than 10 times from six months ago.

He said more people in the mainland and Hong Kong are now familiar with Man Wah's products.

Its Cheers brand is one of the top- selling reclining sofas with a 16.2 percent market share in the mainland.

It operates 296 stores in more than 20 provinces.

Man Wah is seeking to raise HK$3.41 billion by floating 289.3 million new and old shares sales in a price range of between HK$8.50 and HK$11.80 each.

http://www.thestandard.com.hk/news_deta ... 00318&fc=7

[winston]

From Phillips:-

Risks

Up risks

1. Export to U.S. market exceeds the expectation.
2. Bedding sales beat the forecast.
3. The performance of IPO projects beyond expectation.

Down risks
1. Domestic real estate market is worse than expected.
2. U.S. economy double dips.
3. Overseas market trade protection strengthens.


Operating focus return to domestic market, rating Buy

Man Wah plans to issue 290million shares, total will be expanded to 955million total, raising HK$3.12-3.90billion for three domestic projects.

The first, Man Wah plans to build producing and distributing base in Wujiang City, Jiangsu Province with total sofa capacity of 300,000 units.

The second, it plans to expand the domestic retail network into 1,000 exclusive stores under“Cheers” and “Enlanda”, which is 296 and 213 units now.

The third, it plans to build 25 huge exclusive furniture stores separately, with the first one located in Wuhan City, Hubei Province which is planned to operate in 3Q2010.

Given the huge demand both domestic and overseas, we are positive to its future outlook, and expect net profit of HK$678million and HK$894million in FY10/11 and FY11/12, increased 14.1% and 31.9% respectively. Yet its EPS will be HK$0.70 and HK$0.93 respectively due to dilution, suggesting PE of 12.1x-16.9x on the IPO price. Considered H-share investors prefer to domestic consumption company, we give it “Subscription” rating, with 12-month TP of HK$15.0.

[investar]

I applied.
Rationale: all these Chinese buying those LCD tvs (Skyworth...), wouldnt they want a nice recliner sofa to look at those tvs?
And even at the high end of the range, there is still good upside potential.

[investar]

Cancelled application!
After noticing some accounting problems.

[winston]

Ha Ha ... I did not know that you can cancell an application.

[winston]

Not vested

DJ MARKET TALK: Man Wah +4.3%; Not Yet China Consumption Play

1140 [Dow Jones] Man Wah (1999.HK) +4.3% at HK$12.98 but unlikely that record high of HK$14.70 (set Nov. 11) will be re-tested for a while, as stock's near 50% share price rally since September likely pricing in expectations for strong earnings growth.

Furniture maker's 1H net profit +45.7% on-year at HK$372 million, representing 62% of FY earnings forecast of HK$602 million pegged by Thomson Reuters.

Stock trading at 17X annualized 1H earnings, would be undemanding for domestic consumption play, but Man Wah can't be considered domestic consumption play yet given bulk of revenue (71%) still derived from export to U.S., despite company aim to raise sales in China to 50% of total revenue in 5 years. Volume an elevated HK$32.6 million.


Source: Dow Jones Newswire

[winston]

not vested

PROFIT WARNING

The Board wishes to inform the Shareholders and potential investors that it is expected that the Group will record a substantial reduction in its unaudited consolidated net profit, arising from normal operations for the six months ended 30 September 2011, as compared to that for the corresponding period in 2010 due, primarily, to the rising cost of materials and increases in expenses.

http://www.hkexnews.hk/listedco/listcon ... 021428.pdf

[winston]

not vested

Earnings of Man Wah (1999) are expected to benefit from the weakening of the yuan.

For the sofa manufacturer makes handsome profits from the mainland market.

Adding to a cushy outlook for the company is that demand in its key North American market is recovering.

Revenue from the mainland market in the first half increased 42.1 percent year on year.

Its share price is now 16 percent below the peak.

Source; Dr Check, The Standard

[behappyalways]

Under attack by short-seller, Hong Kong-listed Man Wah stages comeback with surge in shares
http://www.cnbc.com/2017/06/08/man-wah- ... dless.html