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Astrea 8 Private Equity Bonds

Astrea 8 is offering two classes of A rated bonds to the public: SGD 260 million Class A-1 @ 4.35% (5 years)  USD   50 million Class A-2 @ 6.35% (6 years) Application for the bonds will close on  17 July 2024 at 12 noon What are Astrea PE Bonds? Astrea is a bond programme where each series of bonds are backed by cash flows from a unique portfolio of PE funds. Astrea 8 is the latest series of PE bonds by Azalea. Given the history of my blog, I have covered all the issuances in the past and you can find the links below: Astrea IV  Astrea V Astrea VI Astrea 7 I have decided not to go through the details of the portfolio and how it works given I have written so many prior write ups.  You should read the gatefold and watch the management presentation available online. In the event you just want to meet the team behind the bonds, you can also sign up for the meet the people session taking place  next Monday evening (I saw it in the advertisements today).  In a nutshell, the portfolio is wel
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China Hongcheng Holdings Limited


(One of the better decorated IPO booth in Raffles Place)

China Hongcheng Holdings Limited manufactures home textiles. The Company produces cotton yarn and fabric, silk cotton fabric, yarn dyed cotton fabric, high density broad width cotton fabric. The Company also manufactures bed linens for itself and under contract for other companies. The prosectus is here.
Public offer: 3 million shares at 50 cents each
Placement offer: 65 million shares
Closing Date: 6 August 2007
Manager: CIMB


This company is somewhat of a combination of "Friven" + "Foreland Fabritech" + "China Printing & Dyeing". While it has its own manufacturing facilities for farbic, it also produces high end bed linen for local and overseas markets. Sales for 2006 was RMB 430.6m and net profit was RMB 54.9m. Based on post IPO shares of 268m shares, the EPS for FY2006 is around 4.1 Singapore cents. For the 9 months ended 31 March 2007, the revenue was RMB 395.6m and net profit was RMB 64.193m. Basically it showed that company is on track to meet the 2007FY forecast and i project a net profit of around RMB 85m for the year ended 30 June 2007. The EPS for 2007F will be around 6.4 Singapore cents. Assume it grow by another 30% in FY2008, the EPS will be Singapore 8.32 cents.

Foreland is trading at a PE multiple of 14.5x while China Print is only trading at around 7.3x. Assume a forward PE mulitple range from 8x-11x, the fair value range of China Hongcheng is between 66 cents to 92 cents. Happy investing.
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