Sino Grandness

Sino Grandness: UOB kay Hian maintains Buy with $1.02 TP. The house hosted Sino Grandness’s VP of Investor Relations at a roadshow in Europe. Note that most clients were impressed by the company’s strong earnings track record and outlook, coupled with specific share price catalysts, such as its Garden Fresh listing. Other positive developments include the introduction of a new line of snack foods under its non-beverage division, which could be a positive long-term catalyst. The house TP assumes the listing of Garden Fresh will go through in 2014, a holding company discount of 20% on its stake in GF and 5.0x 2015F PE on its remaining businesses. Believe there could be further upside after the re-rating of its close comparable, Huiyuan Juice.