Category: China

Huiyuan Juice IPO in HKSE

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“China Huiyuan Juice Group, the mainland’s largest fruit juice maker, is forecast to post 222 million yuan (HK$223.08 million) in net profit in 2006, up 106 percent over a year ago. The company recorded 108 million yuan in net profit in 2005, up 486 percent from the previous year.

Huiyuan is seeking to raise US$250 million (HK$1.95 billion) through an initial public offering next month as it seeks capital for expansion.

…Its peers, milk producer China Mengniu Dairy (2319) and Tingyi Holdings (0322), are trading at 33.8 times and 36.7 times 2007 earnings respectively.”

Comments: like everything else in China, the growth is astonishing. Don’t expect to make quick money on this one though. The expectation will be reflected on the price when it debuts…

huiyuan juice

The ticker symbol is 1886.HK.

Tags huiyuan-juice, ipo

Business China

China Economy Hotel Chains

Post author By stlplace
Post date January 30, 2007
3 Comments on China Economy Hotel Chains

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Counting the economy hotels in China:

Jinjiang Inn: 139 hotels in 44 cities (including under development) as of June 2006, owned by Jinjiang Group (HK Stock Exchange, 2006.HK), started in 1996 (Shanghai).

Home Inns (Nasdaq, HMIN): 134 (94 leased, 40 franchised, 39 cities) as of Dec 31 2006, founded by Ctrip founders Ji Qi, Neil Shen and James Liang, started in 2002 (Beijing)

Motel168 (Morgan Stanley invested $20 m for 20% stake): as the name suggested, the room started from CNY 168, they also offer CNY 268 rooms; started in 2002 (Shanghai).

Super 8 (US Chain): all franchised

7Days Inn (Warburg Pincus invested $10 m for 20% stake): founded by Ctrip South China manager Zheng Nanyan (do we see pattern here?), started in Guangzhou.

Another useful source: hostelCN

Tags china-economy-hotels

China Stocks

Market Cap of Home Inns HMIN

Post author By stlplace
Post date January 27, 2007
1 Comment on Market Cap of Home Inns HMIN

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I made a mistake on the market cap of Home Inns (Rujia, just like home), in my previous post (corrected now). The correct number is stock price * number of shares, or

$44.93 * (32,283,906 / 2 + 5,874,237 ) = $839,479,146
The number of shares 32,283,906 is from its Q3 2006 report. 5,874,237 is the IPO shares on Oct 26, 2006. Note it’s 2006 revenue is about $73 m. So the market cap/sales revenue is about 11.5

Is it high? Yes it’s high among hotel industry. But not high if compared to SINA (also about 10 right now). Note HMIN is growing much faster than SINA these days (70% vs. 30%). I also looked at Baidu’s number, it’s market cap is $4.15 B, and est. 2006 revenue is $106.4 m. The ratio is about 39. BIDU is expected to grow at 68% by WRHambrecht’s James Lee (click on the PDF report). Note growth is only one factor here, we also need to look at the profit margin, etc. if we want to compare apple to apple.

rujia pic

Tags HMIN, home-inns, rujia

China Stocks

Blog about China Motels

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Zhao Huan Yan, a Chinese blogger, has an excellent blog about the developments of hotels and motels in China. He put together lots of statistics (numbers) there. The Alexa ranking of hotels is interesting. Again don’t take this too seriously.

Unfortunately (or fortunately for me), it’s all in Chinese.

Tags China-motels

China Stocks

Home Inns Doubled from Debut

Post author By stlplace
Post date January 26, 2007
4 Comments on Home Inns Doubled from Debut

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It’s about $44 now. Today IBD published an article about Home Inns. The author’s view is a little too optimistic: as I understand serious domestic competitor includes motel168, besides the Jinjiang Inn. I noticed Jinjiang Inn also offers free broad band Internet now, as this was a key differentiator for Home Inn/Ru Jia in the past. Super 8, the US motel Chain, is also expanding very aggressively in China.

home inns bed check

Tags HMIN, home-inns

China Stocks

Focus Media FMCN is hotter than BIDU

Post author By stlplace
Post date January 24, 2007
1 Comment on Focus Media FMCN is hotter than BIDU

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It seems not very intuitive that Focus Media (FMCN), a LCD media advertising company, has done better than Baidu (BIDU), the No. 1 search engine in China. After all , putting up the LCD screen, soliciting the advertising customers, and creating those short films are not high tech as “search engine”, which involves creating a large number of clustered computer, and complicated search algorithm. But this is the reality, Focus Media (FMCN), closed above $80 today amid the new offering of $500 m, the PE (ttm) is about 76, market capital 4.4 B. Since its debut in July 2005 (at 20s), it’s up about 300%.

How about Baidu (BIDU), it debuted on August 2005 at about $120, and it closed at $124.50 today. Here is the chart. The PE is about 165 and market capital 4.2 B.

Tags baidu, BIDU, FMCN, focus-media

China

Starbucks in Forbidden City Beijing

Post author By stlplace
Post date January 23, 2007
2 Comments on Starbucks in Forbidden City Beijing

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There are lots of talk about the Starbucks store in Forbidden City in Beijing these days. It started in Chinese demestic media, and now it speads all over the world (tonight I saw it on BBC). I happened to take a picture of that Starbucks store during my 2005 visit to Beijing. Personally I also felt it’s in appropriate to have a Starbucks inside the forbidden city. I think they can move the store outside.

Tags beijing, forbidden-city, starbucks

China Stocks

Home Inns HMIN Yahoo Message Board

Post author By stlplace
Post date January 23, 2007
No Comments on Home Inns HMIN Yahoo Message Board

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Yes. It’s up and running now. Here is the link. I don’t know exactly how new IPOs got the message board started. It usually takse many requests, and lots of patience.

Oh, don’t take the discussions (especially the price target) too seriously. Because if you believe it and trade accordingly, you may regret later. That being said, I did see some intelligent analyses on the message boards from time to time. But a lot more emotional rants too. You are warned.

No message board for New Oriental (EDU) yet. The funny thing is that Mindray (MR) board was inherited from Morgan Food (used to have ticker symbol MR), and the board works 50% of the time. No wonder Yahoo stock did not do well lately 🙂