CPMC Holdings 0906

[winston]

CPMC Holdings, a packaging unit of China Agri-Industries Holdings' (0606) parent COFCO, kicks off bookbuilding today.

It plans to raise up to HK$1.078 billion from floating 200 million new shares at HK$3.85 to HK$5.39 apiece.

CPMC has three cornerstone investors including China Resources (Holdings) and CCB International Asset Management. It is set to its launch public offering on Monday and list on November 16.

BOC International and China International Capital Corp are joint sponsors and managers of the deal.

Source: The Standard HK

[winston]

=DJ UPDATE: CPMC Seeks Up To US$138 Mln In HK IPO - Term Sheet

(Adds information on parent, use of proceeds and bookrunners.) By Amy Or Of DOW JONES NEWSWIRES

HONG KONG (Dow Jones)--CPMC Holdings Ltd. (0906.HK) is seeking to raise up to US$138 million by selling 200 million new shares in a Hong Kong initial public offering, according to a term sheet seen by Dow Jones Newswires on Wednesday.

The packaging unit of China National Cereals, Oils & Food Stuffs Corp. is selling the shares in a HK$3.85-HK$5.39 range, according to the document.

The IPO's cornerstone investors are China Resources (Holdings) Co., Legal Profit Ltd. (JDB) and CCB International Asset Management Ltd., the term sheet said, without giving details on the number of shares they pledged to buy.

The company will use the IPO proceeds to build production facilities, expand existing facilities and repay a US$13 million bank loan, it said.

BOC International Holdings Ltd. and China International Capital Corp. are the joint bookrunners of the deal, the document said.

Source: Amy Or, Dow Jones Newswires

[winston]

CPMC, the largest metal packaging manufacturer in China, began its roadshow yesterday to tap the market for up to HK$1.08 billion.

Cornerstone investors China Resources (Holdings), Legal Profit and CCB International Asset Management agreed to subscribe for a combined 33 million shares.

Source: The Standard HK

[winston]

Packaging firm CPMC, which started bookbuilding on Wednesday, saw its institutional tranche four to five times oversubscribed, sources said.

[winston]

CPMC, a metal packaging unit of COFCO, parent of China Agri-Industries (0606), plans to float 200 million shares at HK$3.85 to HK$5.39 apiece.

Three cornerstone investors have subscribed for 33 million shares in the initial public offering - China Resources (Holdings) is seeking 15 million shares, Legal Profit 10 million shares and CCB International Asset Management eight million shares.

CICC Hong Kong Securities and BOCI Asia are joint sponsors and bookrunners of the deal.

Source: The Standard HK

[winston]

From Phillips:-

CPMC Holdings Limited (906.HK) - Far too Expensive


Valuation

The company expected the consolidated profit attributable to equity holders will be not less than RMB 146mn, implying 2009E EPS of HK$ 0.2075. Hence, 2009E P/E will be 18.6x – 26x for the indicated price range. Yet, we think this offering is quite expensive in terms of P/E valuation, considering the peers with similar company size. Median expected P/E of the peers is approx. 18.5x, implying 12-month target price of HK$ 3.84.


Risk

1) Any shortage of supplies or fluctuation in the prices of raw materials.
2) Significant change in sales or the losses of any of the major customers.
3) Alternative packaging products or changes in consumption patterns.

[winston]

CPMC, the mainland's largest metal packaging manufacturer, received retail subscriptions worth HK$878 million via margin financing orders.

This is eight times the amount it is targeting from its from retail portion, according to five brokerages.

[winston]

Not vested. From Dr. Check, The Standard HK:-

One stock you can consider is packaging products maker CPMC Holdings (0906). Revenues have risen from 2.07 billion yuan (HK$2.35 billion) in 2006 to 3.35 billion yuan last year, chalking up a compound asset growth rate of 27 percent for the three-year period.

The stock recently slid from HK$7.53 to HK$6.90 and is now trading at 33 times its 2009 expected PE.

That looks expensive, but due to its potential, CPMC holds strong promises.

[winston]

Not vested.

DJ MARKET TALK: CPMC +19.9%; Expensive To Chase Stock Now -Cinda
November 16, 2009

1508 [Dow Jones] NEW LISTING: CPMC Holdings (0906.HK) +19.9% at HK$6.46 vs IPO price of HK$5.39, after trading between HK$6.31 and HK$7.05, supported by strong IPO response with retail tranche 290X oversubscribed.

Castor Pang at Cinda says gains likely supported by brand effect, as it's COFCO group of companies, with leading position in consumer goods packaging. But says current level reflects stock being overbought, as it's trading at above 30X forward P/E.

Suggests entry point at around IPO price level of HK$5.39. "The earnings outlook is strong based on fundamentals, but it's too expensive to chase stock at its current level."

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK:CPMC +21.2%; But Valuation Relatively High-Tanrich
November 16, 2009

1050 [Dow Jones] NEW LISTING: CPMC Holdings (0906.HK) +21.2% at HK$6.53 vs IPO price of HK$5.39, supported by favorable response to IPO (retail tranche 290X oversubscribed), while investors also giving vote of confidence to COFCO's group of companies, says Jackson Wong at Tanrich.

But adds, valuation relatively high, as current level represents about 31.5X forward P/E. Suggests reentry level at around HK$6.00, while those holding stocks may consider taking profits if it revisits HK$7.00. Stock off early high of HK$7.05, still tad below gray market peak of HK$7.15.

Source: Dow Jones Newswire