BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG
EANS-Research: BankM - Repräsentanz der biw Bank für Investments und Wertpapiere
AG
YOUBISHENG Green Paper AG: "Green Dress" for Chinese Consumer Goods (with
document)
-------------------------------------------------------------------------------- Research-News transmitted by euro adhoc. The author / publisher is solely responsible for the content of this announcement. This message does not contain any investment /stock information. -------------------------------------------------------------------------------- Corporate Profiles/IPO, Basic Report, Initiation od Coverage Frankfurt (euro adhoc) - "Green Dress" for Chinese Consumer Goods YOUBISHENG Green Paper AG (ISIN DE000A1KRLR0, Prime Standard, YB1) is an established Clean Tech Leader for the efficient and sustainable production of high quality Linerboard used for consumer goods packaging of leading brand manufacturers in the Fujian and Guangdong region. 1)First Chinese manufacturer to produce high end packaging material for consumer goods from 100 percent recycled paper: a.Positive client reception and government support b.Conservation of resources; environmentally friendly production c.Reduced costs due to comparatively low raw material prices 2)The Company introduces value boosting innovations into the highly fragmented Chinese Linerboard market 3)Innovative products to replace much more expensive and environmentally unfriendly packaging material (Kraftliner) 4)Innovative products to prevent counterfeiting of branded goods packaging 5)Tripling of output within 24 months due to growing market and rising demand for innovative packaging materials highly likely 6)Strategically located in leading consumer goods production region Currently, its production capacity of Testliner is stretched to the limit with a utilization of 95 percent. Thus, the current growth can only be generated by outsourcing parts of the production. However, given the prosperous Chinese economic outlook and the market changing product innovations, the Company now intends to expand its production capacity in order to repatriate outsourced production and to satisfy the growing demand for packaging material in the region. In order to finance the capital-intensive investment into a new production line, increasing capacity from 150,000 to 450,000 tons p.a., the Company plans to launch an IPO in Germany. The total investment amounts to ca. EUR 70 Mill., EUR 36.8 Mill. of which are expected to be raised (net) during the IPO; the remainder of EUR 33.2 Mill. will be financed by the Company´s operating cash flow. By expanding its production capacity, the company will be able to increase market share, to repatriate outsourced production, and - via product innovations - to protect its margins against expected competition. Based on our DCF and Peer Group analysis we calculate a post-money fair value of the equity of EUR 184.5 Mill. or EUR 12.30 per share. Attachments with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/3mUWMKvK Further inquiry note: Dr. Roger Becker Tel: +49 69 71 91 838 46 E-Mail: roger.becker@bankm.de For questions, please also contact our sales-desk at +49 69 71 91 838 12. end of announcement euro adhoc -------------------------------------------------------------------------------- Attachments with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/3mUWMKvK company: BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG Mainzer Landstraße 61 D-60329 Frankfurt