Dapai ( former China Zaino )

[iam802]

Plan visit coming up.

Also mention that fund managers interested....

http://info.sgx.com/webcorannc.nsf/ef3b ... enDocument

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...

Even before the plant-trip, the fund managers have displayed great interests in the Group’s
sponsorship of China Gymnastics Team in the upcoming Beijing Olympics Game. When asked to explain the Group’s marketing strategy, Mr Chen Xizhong elaborated, “ Sponsoring the China Gymnastics Team has certainly raised the profile of our “DAPAI” brand substantially. But
this is only one of our multi-platform marketing activities to increase our brand visibility.
We intend to strengthen our ‘DAPAI’ brand, through advertising on strategic TV channels
such as Hunan television channel, CCTV5 sports channels etc. In addition, we will
continue to support high profile sports events such as the 2007-2008 China Women’s
National Basketball Tournament to embed our ‘DAPAI’ brand name deep into our
customers’ minds. ”

In accordance with the Group’s aim to become one of the top 10 luggage players in China by
2008, China Zaino is also increasing the production of its luggage division. The Group intends to
expand this business by galvanizing its prevailing distribution network. China Zaino foresees its
luggage segment contributing a larger proportion of total revenue going forward given the vast
market potential of the PRC luggage segment. The luggage segment has a larger market size
than the PRC backpacks segment. According to a market research report published by Frost &
Sullivan, the luggage segment is expected to grow by 20% in 2008 with an estimated market size
of USD381.3 million or approximately RMB2,669.1 million.

......

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[millionairemind]

Westcomb Securities: non-rated report

China. Zaino is the largest backpack company in China by 2006 revenue, and is approximately 8 times the size of the second largest company, Jinhou.

Valuation appears attractive at approximately 5.5x FY08E consensus EPS for a backpack market leader.Zaino is currently trading around 5.0~5.5x FY08E consensus EPS. At this price level, we find Zaino attractive for the following reasons:

1) Market leader in China: 8 times the size of its next largest competitor for its backpack segment;
2) Backpack & luggage industry estimated to grow at CAGR of 20% between 2007-09E;
3) Management targets to payout 20% of FY08~09’s net profit, translating to potential dividend per share of 1.7 Singapore cents with a dividend yield of 3.6% based on net profit of RMB 400m; and
4) We believe China Sports, FY08E consensus net profit half the size of Zaino trading at PER of 7x, would be a good comparable for Zaino.

[millionairemind]

DMG Research: non-rated report

China Zaino’s DAPAI brand bagged the “Top 500 Asia Valuable Brand Award” in 2007 and the “Top 12 Bag Brands in China” in 2006.

Earnings growth for this year and next will mainly be propelled by luggage bags sales, which the Group is focusing on expanding its domestic market share. The target to hit for its luggage segment is 2.5m units in sales this year, and this ambition seems well on-course with 1Q08 (weakest seasonal quarter) already registering 782k units.

[millionairemind]

Kim Eng Securities:

We reckon that China Zaino is deeply undervalued given its market leadership and lucrative operating margins. Despite having a huge distribution network as sizable as China Hongxing, China Zaino trades at merely half of Hongxing’s PER valuation. It is even trading below China Sports a much smaller company in terms of network and profitability. In fact, Zaino has deliberately avoided the highly competitive and crowded sports shoes and apparel segment.

We are initiating coverage on China Zaino with a BUY and a 12-month price target of $0.90 (blended PER and DCF valuations). We find Zaino’s sharp discount to peer valuations of 16x FY08 PER hard to ignore, given its market leadership in PRC.

[millionairemind]

China Zaino’s 1H2008 net profit soars 69% to RMB212.6 million with luggage segment as key growth driver

Revenue rose by 66% to RMB1.05 billion on sustainable backpack sales, new contributions from luggage segment and higher average selling prices
Operating cash-flow remained strong at RMB231.9 million in1H2008

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[millionairemind]

3Q results out. Took a hit on bottom line (still improvement) due to increased TV advertisements... not a good move IMO. The payout does not equate the rewards.

http://info.sgx.com/webcorannc.nsf/37e9 ... enDocument

[winston]

DJ MARKET TALK: UOB Cuts China Zaino Target To S$0.21; Keeps Buy

0140 GMT [Dow Jones] STOCK CALL: UOB KayHian maintains China Zaino (FP1.SG) at Buy after company reported 35%, 13% net profit increase for 2008, 4Q08 respectively. "We continue to like its good inventory management and cashrich position;" notes CNY800 million cash, net cash of S$0.167/share.

Adds new plant expected to commerce production in 2010, Gearing ratio dropped below 1% in FY08, "giving the company a great advantage over highly-leveraged peers when cash is king during such times." Still, cuts target price to S$0.21 from S$0.53 based on peers' average 2009F PE of 2.3X. Warns uncertainties in China's economy, outlook in consumption and spending. Lowers 2009, 2010 net profit forecasts to CNY432 million, CNY489 million, respectively. Shares last +13.7% at S$0.165.

[mocca_com]

The chairman done a share buy back worth SGD36.4M. Chairman display confidence in his own company, is it good thing? i remember a few months ago, sino env ceo also did a lot of share buy back.. what happen in the end? well..

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[millionairemind]

sibei kelong, buyback stocks only to sell out later..

May 29, 2009, 8.06 pm (Singapore time)

China Zaino founder pares stake

SINGAPORE - China Zaino said Chen Xizhong, the founder, single largest controlling shareholder and executive chairman of the company, has sold 25.0 million shares at 24 cents apiece and another 150 million shares at 23 cents each.

The shares were sold mainly to international institutional investors through his wholly-owned company, Capital Line Investments Ltd.

With the sale, Mr Chen's stake has decreased from 682 million Shares, representing approximately 72.2 per cent of company, to 507 million shares, representing approximately 53.7 per cent.

[winston]

Not vested. From Kim Eng:-

Lack of earnings catalysts

As the group turned cautious on its A&P spending along with its new expansion focus, we have trimmed our earnings estimates for FY10 by 20% and net margins by 2% point.

As such, our target price has been reduced to 38 cents, pegged at 6x FY10 PER (average valuation of the top 20 s-chips). While the stock is trading at just 3.5x forward PER, we see no earnings catalysts in the next 12 months.

We are ceasing coverage on the stock.