Sino Grandness

Sino Grandness: AM Capital initiates coverage with a bullish Buy, TP $1.51. Note that recent results showed strong performance in all areas with high margins of 32%-52% exceeding expectations. The group’s canned export business saw improving orders from Germany, whilst the domestic fruit business sold higher margin products. The beverage division is key, as a spin off in Hong Kong in 2014 could attract multiples of 15x valuing the division higher than the current SGX listco.