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Food Innovators Holding Limited

Food Innovators Holdings Limited ("FIH" or the "Company") is offering 14m shares at $0.22 each, for which 13m shares will be through placement and the remaining 1m shares via a Public Offer. The IPO will close on 14 Nov at 12 noon and starts trading on 16 Oct 9am.  FIH has two business models - the first is to be a master lease and sublease the space to other tenants and the second is to operate and manage restaurants.  The Company currently has 12 restaurants in Japan, 10 in Singapore and 4 in Malaysia. The market cap based on the IPO price is around $24.9m. Financial Highlights FIH's revenue grew from $37.8m in FY2022 to $43.8m in FY2024. It is quite funny to see that being a master land lease holder has a higher margin than operating the restaurants, once again illustrating the point that it is better to be a landlord to shake leg and collect rent. According to the prospectus, the PER is around 19x. The Company intends to pay 20% of its net profit after ...
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Fujian Zhenyun Plastics Industry


(IPO booth at Raffles Place - Relatively smaller when the booth of Ascendas India REIT is opposite)

Fujian Zhenyun Plastic Industry Co., Ltd is principally engaged in the R&D, design, manufacture and sale of a broad range of plastic pipes and fittings. The prospectis is here.

Public offer: 1.75m shares at 62 cents
Placement offer: 33.25m shares
Closing date: 1 Aug 2007
Manager: Genesis Capital



Sales for 2006 is RMB 393m and net profit is RMB 63m and EPS (based on post-IPO 115m shares) is RMB 0.55 or Singapore 11 cents. The Company has been growing by 30% annually for the last 3 years and assuming this will continue in 2007, the sales for 2007F will be RMB 511m and net profit will be RMB 81.76m and EPS will be 14.2 Singapore cents. Based on the IPO price of 62 cents, it is priced at a forward PE of 4.37x. Sinopipe, the listed peer on SGX, is trading at a PE of around 6x. Assuming a same valuation matrix for Fujian Zhenyun, the fair value will be around 85 cents.

Personally i dont like this investment. I cant see what so exciting about a piping company with low entry barriers. There are better companies around for longer-term investment, this is another sell on first day investment for me.
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Anonymous said…
Come visit singaporereits.blogspot.com
31 July 2007 at 00:16
clownz said…
Why do u not like this one? Very Low PE, with respectable earnings, NTA and cashflow. Seems to be fine..

Hope to learn from you. =) Thanks!
31 July 2007 at 13:32
Mr. IPO said…
Hi Clownz,

The main reason for not liking this company is that i view the products of the company as having a 'single product' with low entry barriers.(I may be wrong in my understanding and assessment of course).
31 July 2007 at 22:36
clownz said…
i see.. but what do u think about sino then? A similar company in the market shd benefit from the listing of a peer and bring its price up to fujian's?
3 August 2007 at 10:02
Mr. IPO said…
Clownz, theoretically it could be practically may not because each company is different and it will also depend on whether they are the respective market leaders in their fields. The market leaders will always enjoy a premium over its peers.
5 August 2007 at 22:28
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