China Automobile Parts Holdings Ltd IPO

China Automobile PartsChina Automobile Parts Holdings Ltd, a China-based automobile chassis components manufacturer is scheduled to be listed in Main Market of Bursa Malaysia on 30th January 2013.

The Initial Public Offering (IPO) consists of public issues of 90 million new ordinary shares and offer for sale of 60 million shares at an IPO price of RM0.68 per share at USD0.10 par value.

Out of that, 120 million shares allocated for private placement to the selected investors and 30 million shares are  made available for application by Malaysian public.

The IPO exercise is expected to raise RM61.2 million, the bulk of which would be used to finance the expansion of its pro-duction centre and increase production capacity

China Automobile Parts makes replacement parts for commercial vehicles, particularly trucks, out of its sole production centre in the Fujian province. It sells five categories of products namely wheel-hub bolts, wheel axles, steel pins, u-bolts, and torque-rod bushings – and has seven patents registered in China. Currently, there’s no direct competitor in China.

For the time being, 65 per cent of its sales are derived from China, while the rest come from Southeast Asia and the Middle East. Going forward, China Automobile Parts aim to have bigger percentage of sales to come from China, given huge potential in that country.

China Automobile Parts intends to pay 20 percent of profit after tax as a dividend for the financial year 2013 & 2104. Based on IPO price of RM0.68 and 2011 figures, the dividend yield is 3% or 2.1 sen per share.

The table below is the financial summary for China Automobile Parts.

FYE 2009 FYE 2010 FYE 2011  FPE 2011 FPE 2012
Revenue (RM’000)  192,427 214,654 287,106  194,691  241,836
Profit after Tax (RM’000)  44,829 45,241 62,945 44,283  40,541
Earnings per Share (sen)  7.28 7.54 10.49  7.38  6.76
Price Earnings Ratio (x)  14.47 10.99 6.48  –  –
Gearing Ratio (x)  0.04 0.03 0.07  0.07  0.05

Amlnvestment Banks is the principal adviser, lead placement agent and managing underwriter of the IPO while M & A Securities is the joint placement agents and joint underwriters.

For those who are interested in China Automobile Parts IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 18 January 2013 at 5pm. Tentative balloting date is on 22nd January 2013 while the allotment date is on 25th January 2013.

China Automobile Parts stock name in Bursa Malaysia is “CAP”.

View China Automobile Parts prospectus in Bursa Malaysia webpage.

What do you think about China Automobile Parts IPO? Are you going to subscribe?


14 comments… add one
  • Any comment about this ipo? Good to apply or not?

    Reply
  • i think it is worth to apply. P/E is around 9-10. 🙂

    Reply
    • Tq for your info

      Reply
  • 1 million Blog, DO you in already ?

    Reply
    • No. I try to avoid any company from China. How about you?

      Reply
      • may i know why u try to avoid?

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        • Previously, the performance of IPO for company from China is not good.

          Reply
  • Just wonder, are they set a company here?

    Reply
    • Yes, they were registered as Malaysia Foreign Company.

      Reply
  • Any research for fair value / target price of this ipo?

    Reply
  • Good response

    Reply
  • Wow… Its hit up to 80% when market opening. Not bad, gain a smart phone for new years 😛

    Reply
  • Highest volume today. No political touch.

    Reply

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