Sino Grandness

Sino Grandness: New highest in the street by Maybank-KE, raising its TP to $1.89 following the co’s announcement yesterday that it has obtained a noobjection letter from SGX for the proposed Garden Fresh spinoff. House more confident about a successful Garden Fresh IPO than before, thus change valuation methodology to SOTP. Note that Garden Fresh IPO is likely to launch in the next twelve months and optimistic on an at least mid-teen FY13 IPO P/E pricing. From house understanding, Sino Grandness has been approached by some investment banks already in the past few months and all of them are quite interested in the proposed Garden Fresh IPO deal because HK has not seen any pure beverage company IPOs in the past few years. Assuming a successful Garden Fresh IPO and parent company Sino Grandness selling some vendor shares, some special dividends can also be expected in FY14.