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ahpuiahsan Find all Topics Started by ahpuiahsan Find all Posts by ahpuiahsan Follow / Unfollow PM ahpuiahsan		08-Jan 2010 Friday 11:24 AM (5273 days ago)	0 Likes #1
Gold Member Posts: 5344 Liked By: 67 Joined: 20 Jun 02 Tipsters Championship: Player has not started	Dual listing is the key play nowadays. Bro Bin, your Midas is 1 of the counter. Dual-listing catalyst in vogue again after Epure’s announcement yesterday. Low valuation is key catalyst towards dual-listing or privatisation. Possible dual-listing candidates are Midas, China Fish, Pacific Andes, China Animal and Yangzijiang. China Hongxing and China Sports with net cash positions are potential candidates for privatisation. Spot on for Epure, more to come? We correctly spotted Epure in our last report on 29 Jul 09, which just announced plans for a HK dual-listing. This development and buoyant share performance of CXLX (+47% since announcement), has once again revived interest in S-shares. Besides this, several privatizations have also taken place. We believe these themes may continue to be in vogue and we attempt to uncover possible names. Midas, CFG, PAH, CAL and YZJ are possible names. Having already announced their intention, Midas could be next on the cards. As per our last report, we believe valuation continues to be the main motivator for dual-listing. While HK could be the natural choice, we think companies could choose other markets that offer the best valuations. For one, China Fishery and Pacific Andes Resources could look at Oslo Bors, a leading exchange for fishery and aquaculture sectors. China Animal trades at >75% PE valuation discount to peers listed in China, which may prompt the controlling shareholder (chairman of the board) to chase for higher valuation in Shanghai. Yangzijiang may dual-list in Taiwan, given its peer, CSBC Corporation, is trading at PE valuations more than double that of YZJ’s. Privatisation could be in play as well: China Hongxing and China Sports? Several counters have been privatized at between 10-27% premium. These companies generally had (i) <40% free float; and (ii) But not without risks/hurdles. While the benefits of dual listing/privatization look appealing, hurdles to consider include the ability to secure funding for privatization. Post successful listing of CXLX, we believe that a dual listing on the H-share market may be looked upon more favourably if it is accompanied by a fund raising initiative. As such, they may have to be attractive enough and of good enough quality so as to garner sufficient institutional interests. Life's like a box of chocs, you'll never know what you gonna get. I didnt know, but when you walked into my life, i just knew i'd gotten the sweetest box...
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