China Animal Healthcare

China Animal Healthcare: may be in focus on news it's contemplating a potential delisting from SGX (while maintaining its primary Hong Kong listing). The company, which manufactures animal vaccines, is looking into delisting as part of a "constant evaluation of corporate options" and makes the announcement to clarify recent media reports that cited the company as a potential candidate for privatisation.

China Animal says SGX has no objection to any potential delisting, subject to conditions. The news is unlikely to cause too much surprise, but may focus investors' attention on potential delisting candidates, especially among beaten-down S-chips. In a recent note on the issue, CIMB said "although trading above book, China Animal may (at some point in time) have to rationalize if a dual listing is worth the associated costs?"

In 2Q11 China Animal posted net profit of Rmb60.2 m, and said it expects to remain profitable with strong growth this year. China Animal closed Friday, before requesting a trade halt, +6.1% at $0.26 in heavy volume in Spore, and HK$1.57 in HK (1SGD = HKD6.12).