Sino Grandness

Sino Grandness: UOB Kay Hian catching up with mgt in regards to its Garden Fresh listing, where mgt guided that the sponsors are still working on minor verifications and documentation but they remain non-committed on the dates of application and listing of the juice business. UOB was initially expecting the IPO application by Jun and the book-building to be completed in October, but there is an increasing probability that this may get delayed. If Garden Fresh's listing is delayed convertible bond holders have the option to extend the redemption for another eight months or redeem the bonds fully. If the bonds are fully redemmed, Sino Grandness may require bank financing for its working capital needs. Operationally however, sales outlook remains positive with the company targeting 25-30% growth for its juice business and high-single-digit growth for its canned food business. Overall, while the house likes Sino Grandness for its high-growth business and inexpensive valuation, risk-adverse investors should accumulate the stock only when the listing is more apparent.