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Monday, 23 July 2007

Yong Xin International Holdings Ltd

(Yong Xin IPO booth at Raffles Place)

Yong Xin International Holdings Ltd manufactures high precision steel strips and its main products are chrome plated steel strips and cold rolled steel strips. The prospectus is here.
Public offer : 2m shares at 30 cents
Placement offer: 58m shares at 30 cents
Manager: Sterling Coleman
Closing date: 26 July 2007

This is another good quality IPO from Sterling Coleman. It seemed that this boutique IPO firm is on the right track and hitting the market with a series of quality Chinese IPO companies. Unfortunately the number of shares available for the public tranche is really pathetic and the probability of getting it from the ATM is extremely low. The listed peers in Singapore are mainly Link Hi Holdings and Cosmo Steel Holdings. Currently steel products are in high demand in China since China is the factory of the world and this is no exception.

(peer comparison)
Based on a 15x forward PE for 2007 EPS, my fair value for this company is 60 cents. (vested).

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