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Tuesday, 10 July 2007

China Angel Food Limited

Ratings: 3 Hot Chillis (Hoot)

Click here for the prospectus of China Angel Food Limited.

5,000,000 shares by way of Public Offer (very difficult to get from ATM)
98,800,000 shares by way of Placement.'
Manager - Kim Eng Capital Pte. Ltd.

The IPO is priced at 14.8x historical PE. Not exactly cheap if based on 2006 earnings in Singapore context but relatively much cheaper if we compare with the valuation matrix of Shanghai and Hong Kong.

The peers listed in Singapore are trading at very high historical PEs of 19x and the fair value of China Angel is 46 cents based on 2006 earnings but will shoot up to 53 cents when i use a conservative 30% growth in EPS for 2007.

Conclusion: Hoot but will be difficult to get from the ATM
Author is vested

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