Mingfa Group Kicks off HK IPO on Oct. 21

Mingfa Group (International) Company Limited (SEHK: 0846), one of Mainland China-based property developers, today kicks off an initial public offering (IPO) on the Stock Exchange of Hong Kong (SEHK).

Its sponsor Deutsche Bank predicted that the capitalization of Mingfa Group would stand at HKD 49 billion. According to its prospectus released today, the real estate developer is predicted to gain a yearly net profit of not less than CNY 862 million by the end of 2009.

The price/earnings (PE) ratio will stand between 16.3 and 31.9 times in case that the share price stood at CNY 3.03 apiece, or between 20.4 and 39.9 times in case of a share price of CNY 3.79. By the end of this June, the gross profit margin of Mingfa Group had reached 31.7%, compared with 57.7% a year earlier.

By the end of August 2009, the Hong Kong-listed company had owned 34 various property projects. The floor areas of projects that it had developed, was developing, or would develop separately stood at 2.7 million, about 2.9 million, and 3.1 million square meters.

Source: www.hexun.com (October 21, 2009)

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