Sino Grandness

Sino Grandness: At the current share price of S$0.475, it is trading at 2.3x2012F PE (ended Dec 12) and 0.135x PEG (2012-14F). Currently, the fast-moving consumer goods peers in HK are trading at an average of 33.2x FY11 PE. UOB Kay Hian has TP of $0.78 which translates into 3.0x2013F PE, pegged to SG-listed peers’ average. House note the potential upside of $1.12/share if Garden Fresh obtains approval from an exchange to list, assuming a holding company discount of 20% to Sino Grandness Food’s Garden Fresh stake and a 3.0x 2014F PE valuation to its remaining business.