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China Stocks

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

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Business China

Xinhua Finance Media Limited IPO

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Found this through my friend thesunsfinancialdiary. I briefly went through their F1 prospectus. I had to admit I’m not in best position to evaluate their business: they have 5 divisions providing services from creating adverstisement to customer research. I can think of a St. Louis based privately held company called Maritz which does something similar: they organized conferences for other companies, send promotional gifts for companies like Nissan, take care of the employee reward etc. One way to analyze Xinhua Finance (symbol: XFML) is comparing each division to a public company does something similar, then adding them up.  

On a related matter, the event marketing services in China is booming. About 2 years ago, during my Jiu Zhai Guo tour, I met a senior executive of a conference organizing company  based in Beijing, I learned about three most popular conference places in China: Shanya (Beach), Dali (Yun’nan), and Jiu Zhai Gou/Chengdu.  

By the way, the parent company of Xinhua Finance Media Limited is traded in Tokyo. Also, the CEO and co-founder of the company is Ms. Fredy Bush, not sure if she is related to the George Bush family…

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China Stocks

Motel 168 IPO

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From Reuters:

“China’s Motel168, one of the country’s three biggest budget hotel chains, plans to raise about $100 million through an initial public offering on Nasdaq, sources familiar with the plan said on Wednesday.

Motel168, controlled by privately run Shanghai hotel and restaurant manager Merrylin Holdings Ltd., has hired Wall Street investment bank Morgan Stanley (MS.N: QuoteProfile , Research) to advise it on the IPO, planned for the third quarter of this year, the sources said.

Morgan Stanley is also a major shareholder in Motel168 after an investment arm of the bank paid $20 million for a 20 percent stake in late 2005, the sources said.

“Motel168 is hungry for capital now as it has to compete with Home Inns, Jinjiang Inn and other rivals for aggressive land purchases to build more hotels,” said one Shanghai-based source close to Motel168.

“If you don’t speed up, then you lose market share and soon you will be completely out of the race,” said the source, who declined to be identified before an official announcement.”

Wang Jianshuo has a good review about motel 168 in his blog.

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China Stocks

Second Look at Huiyuan Juice IPO

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I noticed this juice thing is getting popular in China, just like the coffee did in recent years. In summer 2004, when I attended a bunch of formal dinners in Ningbo, juice is an option, as is the wine. Juice is also offered in the airplane. One thing I noticed that the orange juice in China is mostly “from concentrated”, probablly due to cost and taste reasons. So the demand and the growth is there. The problem with the company, from I read from FinanceAsia:

“Among the potential concerns, observers say, is the cost of buying juice concentrates and fruit puree, which increased by more than 50% in the first nine months last year. The company buys about 56% of this raw material from abroad, making it vulnerable to swings in international prices, particularly for oranges.”

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Business China

Huiyuan Juice IPO in HKSE

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From The Standard:

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.

Categories
China Stocks

New Trend in the China Stock Market

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I did not realized the China Life Insurance (LFC) is going IPO in Shanghai Stock Exchange (A shares) until a few days ago. I did a little research on the web and found out there are quite a few big cap Chinese ADRs are going this route: Guangshen Railway (GSH) and Aluminum China (ACH) are another two. Here is an article I found on the web: besides those US ADRs, we have a few Hongkong listed companies such as Bank of China, China Industrial and Commercial Bank, PingAn Insurance, Air China, DaTang, etc.

So far the best performing stock is LFC; GSH also got a jump in past few days. Should have done research on this earlier: stock market is not like pursuing girl friends, besides being focused one should also be vigilant on new things.

Who is going to be the next one on the “back to China IPO”? I don’t know. But I believe the trend will continue, and one of the safe way to bet on this is investing through ETFs such as FXI. Sun’s Financial Diary has a very good analysis on this.

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Stocks

Heelys IPO Start Tomorrow Dec 8

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Obviously there is already a lot of excitement on this one, partly because of the success of similar plays such as UARM and CROX; partly because of Jim Cramer’s pump last night Dec 6, Jim did make a mistake saying it’s going out today (Dec 7), which is not true. It is going to be priced today and started trading tomorrow Dec 8, see this article from MarketWatch for more details.

(Update) Actually the HYLS was priced above the 16 to 18 range and went to 21, according to Reuters. Considering the 2006 earning of 1.00 (it already made 0.70 in first 9 months in 2006), and a PE ratio of 30 (which is reasonable), the stock could start at 30. This means a 50% jump from the IPO price. While this is not a record (compared to more than 100% jump of NMX), it will still be very nice. We can already see the action from today’s CSWC (it owns 35% of Heelys) stock, it went up 15%. 

Once again the bubble is building…stay tuned.

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Fun Stocks

Heelys is going IPO

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Heelys is the shoe can be used both for walk and skate, using the retractable wheel under the heel. It is most widely worn by kids and teenagers aged from 6 to 14, and from what I see from Zappos (the online shoe store), kids and parents are crazy about this.

Now the company is filing for IPO, here is the SEC S1 filing. I expect this to be a hot one because of recent success of footwear maker Crocs (CROX) and atheletic apparel maker UnderArmor (UARM). They both gained 100% after their recent IPO. This is partly due to the fashion craving and generous spending of American consumers: from iPod to Crocs, it’s not just the functionality, the fashion is more (if not less) important. 

While the proposed IPO stock to be priced between $16 and $18, I think it could open at $22 to $25. The proposed ticker symbol is HLYS on Nasdaq, it is set to debut on Friday Dec 8. If I make some profit on this one, maybe I can buy myself a pair of Heelys? I like skating (roller blading). Be aware skating is a dangerous sports, so wear your protective gears especially the helmet.      

Heelys shoes

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Stocks

It’s deja vu all over again

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E-future, a not well known Chinese company, set a record for Chinese stocks traded in the US. Its stock went from $10 to $43 in 4 days. In another words, in 4 days it “accomplished” what Google’s stock accomplished in 2 years: from $100 to $400. It seems like I missed a golden opportunity to get rich fast. But on the serious side, I think there are lots of bubbles involved. I looked at the price of 3 well known Chinese IPO stocks, the New Oriental (EDU), Mindray (MR) and Home Inns (HMIN), they are all trading at about PE 50 (ttm) now. Note HMIN and MR will report tomorrow and Thursday, we’ll see the stock get a reality check after that: if it beats, it will go to the moon; otherwise it will go back to the earth 🙂

I am also looking at the NyMex, New York Mercantile Exchange’s IPO this Friday, should be as hot as today’s Google. I bought NyMex’s competitor, Interconntinental Exchange (ICE), on Nov 17 2005 (and sold it the next day), the ICE has been gone from $38 to $97 in about a year 🙁  

PS, the SEC filing of E-future can be found here.

Categories
China Stocks

Home Inns IPO Date

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I could not find the offical date for the IPO date. The only thing official is it will debut this week. Since now it’s 12:50 PM Eastern Time, I don’t think it will go out today. That means we only have 2 days left.

Sohu has an aritlcle which did mention it will go on Oct 26 evening Beijing time. But it also says it’s the Oct 25 US day time. So go figure.

Also, the yahoo Finance is up for “HMIN”, although there is no content.

Incidentally, the World Series game 4 is rained out today. My sympathy to those people who paid “pretty penny” for the tickets. I heard the tickets start from $500 on the market.

PS, according to Sohu, the price for Home Inns share is $13.80 and it will go out Oct 26. This thing is as intense as  the baseball World Series 🙂