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| Wednesday, 1 November 2017, 19:28 HKT/SGT | |
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Offering of 120,000,000 Shares through Public Offer and Placing;
Price Ranges from HK$1.05 to HK$1.45 per Share |
HONG KONG, Nov 1, 2017 - (ACN Newswire) - Sun Hing Printing Holdings Limited ("Sun Hing" or the "Group"), a one-stop printing services provider in Hong Kong, today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK").
 | | From left to right: Mr. Stanley Lau, Senior Account Manager; Mr. Alan Chan, Executive Director; Mr. Peter Chan, Chairman & Executive Director; Mr. Kenneth Chan, CEO & Executive Director; Ms. Lorna Cheung, Financial Controller |
Offering Details
Sun Hing intends to offer a total of 120,000,000 shares. The Share Offer comprises an offer of 12,000,000 shares under the Public Offer (subject to reallocation) and 108,000,000 shares under the Placing (subject to reallocation and the Over-allotment Option) at an indicative Offer Price ranging from HK$1.05 and HK$1.45 per Offer Share. After deducting relevant expenses, and assuming an Offer Price of HK$1.25 per Share (being the mid-point of the indicative Offer Price range) and the Over-allotment Option is not exercised, net proceeds from the Share Offer are estimated to be approximately HK$120 million.
Within the Placing, Deputada Leong On Kei, Angela has agreed to subscribe for 24,000,000 shares, representing 5% of shares in issue upon completion of the Share Offer (assuming the Over-allotment Option is not exercised).
The Public Offering will commence on 2 November 2017 (Thursday) and end at noon on 9 November 2017 (Thursday). The final Offer Price and results of allocation will be announced on 15 November 2017 (Wednesday). Trading of Sun Hing's shares will commence on the Main Board of SEHK on 16 November 2017 (Thursday) under the stock code 1975. Shares will be traded in board lots of 4,000 shares each.
Kingsway Capital Limited is the Sponsor while Great Roc Capital Securities Limited and Kingsway Financial Services Group Limited are the Joint Bookrunners and Joint Lead Managers of the listing.
Investment Highlights
Top five printing services provider in Hong Kong with well-established history and reputation
With a long and well-established operating history that can be traced back to the late 1970s, the Group ranked fifth in terms of market share of total industry revenue in Hong Kong in 2016 with a proven track record of providing timely and quality printing services. The Group has attained a number of international standards and qualifications in relation to the printing industry including the ISO 9001:2008, standard under Frost Stewardship Council, ISO 14001:2015, G7 certification of qualification, Intertek GMP and Intertek HACCP.
Comprehensive, attentive and high quality printing services
The Group's printing services range from printing solution consultation, pre-press, offset printing, post-press to delivery. Its printing services focus on paper-related printing products and can cater for customers' diversified needs on design complexity, size, quality and quantity of printing products to be used in different areas. Sun Hing owns more than 600 production machines and equipment to maintain production capacity and keep pace with fast technological development. The enterprise resources planning (ERP) system also facilitates the Group's production scheduling and enables real-time tracking of the production progress.
Established stable relationship with top five customers and suppliers
Capable of meeting the high standards of audit inspections across various aspects, such as health and safety and environmental protection, the Group is familiar with the requirements of its existing customers and has been working with its top five customers for periods ranging 3-18 years. The stable relationships enable the Group to take up further purchase orders of varying scale and service scope from its existing customers. The well-established relationship with the top five suppliers also enables the Group to ensure timely delivery of raw materials in line with its high quality requirements.
Experience and dedicated management team
Sun Hing's management team has extensive knowledge and experience in the printing industry. Most integral to the success of the Group is Mr. Peter Chan, Founder, Chairman and Executive Director, and Mr. Desmond Chan, Executive Director, who both have accumulated more than 35 years of experience in the industry and have built Sun Hing's reputation in the printing industry as well as facilitated long term relationships with customers and suppliers. In addition, Mr. Kenneth Chan, Chief Executive Officer and Executive Director; and Mr. Chan Chi Ming, Executive Director of the Group, have more than 13 and 35 years of experience in the printing industry respectively. The Group's management strives to keep track with the rapid technological development of printing equipment and products and has continued to expand its scope of services to enhance its market presence.
Future Strategies
Expand scope of printing services
According to Frost & Sullivan Report, the CAGR of revenue in the global package printing market is expected to be 3.5% between 2017 and 2021 reaching US$377.5 billion; while the CAGR of the revenue derived from the Hong Kong package printing market is anticipated to be 3.6% between 2017 and 2021 to reach US$1,056.9 million. The growth is to be driven by the continuous innovation or improvement in technology and increasing demand for packaging.
The Group plans to expand its scope of printing services from providing printing products currently used in various consumer product market segments as well as for promotion, advertising and education ("existing markets"), to also cover the market sectors of food, cosmetic and medical ("new markets").
Increase categories of value-added information technology-related services
According to Frost & Sullivan Report, due to the supportive policies of the PRC government, rapid urbanisation and trend towards smart devices, the Industry of Things ("IoT") market size in terms of value in the PRC is expected to increase at a CAGR of 21.7%, reaching RMB2,570.9 billion by 2021 due to further penetration of IoT-related technology in various sectors and higher user acceptance.
To capture the enormous market opportunities presented by this trend, the Group plans to expand the categories of value-added information technology-related services on its printing products such as the inclusion of RFID labels, NFC tags and/or audioposter technology. The Group also plans to enhance existing customers' loyalty and differentiate itself from traditional printing factories in order to drive revenue growth in the future by providing more categories of value-added information-technology-related services.
Use of Proceeds
Assuming an Offer Price of HK$1.25 per share (being the mid-point of the indicative Offer Price range) and that the Over-allotment Option is not exercised, net proceeds from the Share Offer are estimated to be approximately HK$120 million and will be applied as follows:
Item / HK$'000 / Percentage
Purchase four presses to maintain and enhance production capacity: 78,000 / 65.0%
Relocate Shenzhen Factory: 30,000 / 25.0%
Upgrade enterprise resources planning (ERP) system: 4,000 / 3.3%
General working capital: 8,000 / 6.7%
Total: 120,000 / 100%
Financial Highlights
(HK$'000) For the Year Ended 30 June
2015 / 2016 / 2017
Revenue: 289,413 / 291,207 / 302,987
Gross profit: 68,800 / 100,107 / 111,133
Gross profit margin: 23.8% / 34.4% / 36.7%
Profit for the year: 16,816 / 43,270 / 48,911*
Net profit margin: 5.8% / 14.9% / 16.1%*
*Before listing expenses of HK$12.1 million
About Sun Hing Printing Holdings Limited
Sun Hing Printing Holdings Limited a leading one-stop printing services provider in Hong Kong that has obtained a number of international printing industry-related standards and qualifications. The Group ranked fifth in terms of market share of total industry revenue in Hong Kong in 2016 according to Frost & Sullivan Report. The Group currently serves worldwide customers in various industries and provides a wide range of printing services from printing solution consultation, pre-press, offset printing, post-press to delivery services of customised paper-related printing products that are used in the markets of various consumer products for promotion, advertising and education purposes. For more information about Sun Hing, please visit the company website: http://www.sunhingprinting.com/
Media Enquiries:
Strategic Financial Relations Limited
Heidi So Tel: (852) 2864 4826 Email: heidi.so@sprg.com.hk
Keris Leung Tel: (852) 2864 4863 Email: keris.leung@sprg.com.hk
Janet Fong Tel: (852) 2864 4817 Email: janet.fong@sprg.com.hk
Website: www.sprg.com.hk
Topic: Press release summary
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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