Sino Grandness

Sino Grandness: UOBK attended the mgt call, where every point of the allegations in the short sell rpt was rebutted. Key to note what that the mkt research methodology is different, and while the short sell rpt noted that Euromonitor and AC Nielsen failed to include Garden Fresh as one of the top drink brands, mgt highlighted that Frost & Sullivan, which Sino Grandness had engaged for the Garden Fresh IPO, had data which suggested the China fruit juice market is close to Rmb170b, and Garden Fresh's sales of Rmb1.3b represents <1% of the juice mkt and therefore the brand may have been missed out amongst the top players. UOBK maintains its Buy rating and TP $0.95, and will continue to monitor the situation closely for further development. Its TP assumes Garden Fresh listing will go through , and TP falls to $0.75 if the listing exercise fails.