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Xinhua Finance Media Limited XFML IPO

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I received an Email from my broker WR Hambrecht asking me if I am interested in Xinhua Finance IPO. I talked it a little in a previous post; now I feel it’s not another Maritz. Also after yesterday’s crash, I got a little warmed up on it. So I called them and indicated my interest. Don’t know if I will get some. We will see.

Here is their F1 prospectus. I think some of comparables include: FMCN, JRJC in China and Viacom, Reuters in the US. Just on the top of my head, will do my reading and report my finding later. By the way, Xinhua is a very well known name and brand in China.

xinhua finance pic

6 replies on “Xinhua Finance Media Limited XFML IPO”

Well, this is no Home Inns or Mindray. It’s a holding company in China growing advertisement and media industry. In its brief operating history it got about $59 m revenue in year 2006. Of course stock is about future. I think Xinhua will have oppertunity in fast growing Chinese consumers, even though it did not get a foot in the Internet advertisement. I believe the TV is still the king of consumer goods advertisement in China, and Xinhua can use some of its expertise in this area.

I got a few shares during IPO ($13), already under water now 🙂

The thing that people don’t understand is that Bush and her Xinhua Finance Ltd company has the inside track. She has it because she’s earned it over the last 15 years or so. There are few westerners that have the ear of the Chinese government like Bush does regarding Chinese business and it’s interface with the rest of the world. Research the “EXCLUSIVE” contracts through Xinhua Finance with the Chinese government that grants unbelievable access to information as well as the ability to report China financial data to the world. Look at her FTSE/Xinhua Indices and ETF’s, and her Milken indice information. If you research Xinhua Finance Ltd you will see that there is no other company that even comes close to having the information, the contacts, and the contracts that this company has in China regarding financial information, as well as considerable insight of all things business in China. There’s ben talk of discounting XFML because of “China governmental regulations” is also absurd. Ever hear of the FCC, FTC, etc. etc in the US? Do companies here make a profit in spite of the regulatory powers that be? Of course they do. When you realize that China’s growing at 9 – 10% a year compared with the US’s paltry 3%, but you can’t get it that pioneers and leaders in an extreme growth astmosphere like that are almost destined to profit, then you’re looking at the speed bumps and not the highway. To consider that Xinuha Finance has no real competition in many areas, and for many years to come, should be enough to cause you to do the commisserate research prior to expounding in such a vague way or just looking at their IPo in such a wacky and volitile market of the past week or so. Consider instead all the Western companies that are already doing, or are planning to do, business in China. Who do they contact to create, produce and place their ads for the products they wish to sell? Who now has the most watched financial TV programs in China? One of the largest advertising agencies in China? Some of the most respected financial print products in China? The most listened to financial radio programs in China? An audience of hundreds of millions, already? Think – Xinhua Financial Media Ltd. Name another company that is real competition if you can.

Also, research Fredy Bush. A recent Ellis Island award winner. One of Forbes 50, (not 500)… 50 Women to Watch in the World, she serves as Chairwoman of the China Investment Forum, she won the Asia Entrepreneur of the Year Award from CNBC— as follows:
Fredy Bush of Xinhua Finance Ltd. embodies the talent and skills of an adroit entrepreneur who has the courage to challenge paradigms, the vision to develop new business ventures based on opportunities and the confidence to encourage others to innovate. Under Ms. Bush’s entrepreneurial skills, Xinhua Finance became the first China concept company to be listed on the Tokyo Stock Exchange’s Mother Board. The first non-japenese company to be listed on the TSE. And there’s more.

Watch XFML soar over the next two years and remember your flippant overview of such a monumentally adroit company and it’s leadership.

Bobby,
You made some points. But I don’t agree with you on the latter part. I am open minded, but I think your view is a bit extreme. Ellis Island award? Does Warren Buffett have those kinds of awards? I mean if someone is REAL good, he/she does not need this kind of award to prove himself/herself.

On the other hand, I believe they do have serious competitors inside China, such as No. 1 Cai Jing (china-cbn). I can not even get access to Xinhua’s “Fortune China” TV at my Shanghai home.

Xinhua’s strength lies in its western roots. As Chinese connections, we all know how it goes…Guan Xi is important in China, but again great business does not solely depends on Guan Xi. They create value for customers.

STLPlace@Shanghai

this is from the XFML F-1 document:
‘..cable and satellite television broadcasting on Inner Mongolia Satellite Television, to an estimated audience of 210 million potential television viewers in key Chinese urban areas including Beijing, Shanghai and Guangzhou..”

so its TV viewership is those of “Inner Mongolia Satellite Television”.

Anyone wishes to bet on XFML shall first understand where Inner Mongolia is located in China !

I just want to point out some facts:
1) I wonder how many people in the 3 cities (Beijing Shanghai Guangzhou) are viewers of “Inner Mongolia Satellite Television”, when there are so many popular local channels available.

2) I’ve been doing business travel to all those cities for countless time, I am not even aware of such channel available in any business hotels I have stayed.

I have no doubt of Ms. Bush’s PR capability, but running a successful business in China requires much more than PR.

about “most respected financial print products in China” , I think those from XFML are far from that class by any measurement at the current moment.

Ask any fund manager in HK or Shanghai which are the most popular finance magazines. I can tell you it’s Caijing. Caijing, though a PRC publication, is widely circulated in HK among those fund managers who have a need to know most updated PRC events.

This requires no argument, go to Central in Hong Kong (the areas the HK Stock Exchange and the HK Monetary Authority are located) and check out the newstand what Chinese finance magazines are on display, as simple as that. I drop by those newstand everyday. I live in HK, I have too many fund manager friends who told me this message. I don’t need further proof.

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