Chaoda Modern Agriculture (Holdings) Limited Analysis
Investment and Portolio Analysis Assignment 2 (Q1)
Answer to Question 1 1. Introduction This paper is to review a company called Chaoda Modern Agriculture (Holdings) Limited (the Company). The review hereafter will cover: the Company; the Market & Opportunity for Chaoda; and Financial Figures & Indicative Valuation.
Based on the findings of the review, recommendation on “Buy” or “Don’t Buy” will be attempted to address in the last section of Conclusion. 2. The Company Chaoda Modern Agricutlure (Holdings) Limited (the Company) was listed in the Hong Kong Stock Exchange in December 2000 with its listed code of 00682. At its IPO, the offer price was HK$1.52 per share. Since then, the stock has been trading with its trough of HK$0.59 per share during March 2003 and its peak of HK$11.9 per share during August 2008. As at 29th January 2010, the stock price was closed at HK$7.65 per share.
Chaoda (00682) - Daily Closing Price
14 12 10 8 6 4 2 0
Data Source: Yahoo Finance
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Investment and Portolio Analysis Assignment 2 (Q1)
2.1 Ownership of the Company The Company has authorized shares of 5,000,000,000. At the par value of HK$0.1 per share, the Company therefore has authorzied share captial of HK$500,000,000. As at 7th January 2010, the total number of issued shares was 3,116,927,961 and there were no preference shares or other classes of shares. Thus, taking the share closing price of HK$9.42 per share at that date, the market capitalization was HK$29.36 billion. The major shareholders of the Company are: Major Shareholders Kailey Investment Ltd.* Janus Capital Management Ltd. Blackrock, Inc. Current Holding 643,092,644 315,630,485 171,643,409 % Held 21.13 10.37 5.64 Date 2009/12/24 2009/12/24 2009/12/24
* Beneficially and wholly owned by Mr. Kwok Ho
2.2 Chairman and Chief Executive Officer (CEO) Being the majority of shareholder, Mr. Kwok Ho is also the Chairman and CEO of the Company. However, under code provision A.2.1 of the
Answer to Question 1 1. Introduction This paper is to review a company called Chaoda Modern Agriculture (Holdings) Limited (the Company). The review hereafter will cover: the Company; the Market & Opportunity for Chaoda; and Financial Figures & Indicative Valuation.
Based on the findings of the review, recommendation on “Buy” or “Don’t Buy” will be attempted to address in the last section of Conclusion. 2. The Company Chaoda Modern Agricutlure (Holdings) Limited (the Company) was listed in the Hong Kong Stock Exchange in December 2000 with its listed code of 00682. At its IPO, the offer price was HK$1.52 per share. Since then, the stock has been trading with its trough of HK$0.59 per share during March 2003 and its peak of HK$11.9 per share during August 2008. As at 29th January 2010, the stock price was closed at HK$7.65 per share.
Chaoda (00682) - Daily Closing Price
14 12 10 8 6 4 2 0
Data Source: Yahoo Finance
Page | 1
Investment and Portolio Analysis Assignment 2 (Q1)
2.1 Ownership of the Company The Company has authorized shares of 5,000,000,000. At the par value of HK$0.1 per share, the Company therefore has authorzied share captial of HK$500,000,000. As at 7th January 2010, the total number of issued shares was 3,116,927,961 and there were no preference shares or other classes of shares. Thus, taking the share closing price of HK$9.42 per share at that date, the market capitalization was HK$29.36 billion. The major shareholders of the Company are: Major Shareholders Kailey Investment Ltd.* Janus Capital Management Ltd. Blackrock, Inc. Current Holding 643,092,644 315,630,485 171,643,409 % Held 21.13 10.37 5.64 Date 2009/12/24 2009/12/24 2009/12/24
* Beneficially and wholly owned by Mr. Kwok Ho
2.2 Chairman and Chief Executive Officer (CEO) Being the majority of shareholder, Mr. Kwok Ho is also the Chairman and CEO of the Company. However, under code provision A.2.1 of the