Most readers would be aware of Mr Koh Wee Meng, Executive Chairman and CEO of Fragrance Group who joined the ranks of Singapore Billionaires as shares of Fragrance Group doubled (including dividends) after Fragrance announced its intention to explore the possibility to spin off its hotel assets via a separate listing on 15 Aug 2011.

< !--[if !supportLists]--> 1.          < !--[endif]--> Issuance of CB to Goldman Sachs inspires confidence

 

< !--[if !supportLists]--> 2.          < !--[endif]--> Presence of new locations & new channels

 

< !--[if !supportLists]--> 3.          < !--[endif]--> Results likely to exceed analysts? estimates

 

< !--[if !supportLists]--> a)          < !--[endif]--> One off professional fees of around RMB7m to be incurred in 2H for the issuance of CB to Goldman Sach and its co investors

< !--[if !supportLists]--> b)          < !--[endif]--> Higher amortization of quarterly convertible bond expenses, as there are two CBs in place vs one previously

< !--[if !supportLists]--> c)          < !--[endif]--> A& P expenses likely to be higher in 2HFY12. However, overall expenses are likely to be kept around 6% of its beverage business sales

< !--[if !supportLists]--> d)        < !--[endif]--> Product mix, especially the beverage segment changes with the weather. For example, during summer periods such as June to end August, consumers tend to drink less concentrated beverage juices (i.e. more water content) than cold seasons. Typically, more concentrated beverage juices command slightly higher margins.

< !--[if !supportLists]--> 4.          < !--[endif]--> Domestic canned fruits business doing surprising well

 

< !--[if !supportLists]--> 5.          < !--[endif]--> Active efforts in investor relations increase investor awareness

 

< !--[if !supportLists]--> 1.          < !--[endif]--> Performance benchmark of RMB140m for Garden Fresh FY12 net profit

 

< !--[if !supportLists]--> 2.          < !--[endif]--> Failure for Garden Fresh to attain RMB80m net profit in FY12F

 

< !--[if !supportLists]--> 3.          < !--[endif]--> Cash intensive business à May distribute little dividends, if any

 

   

< !--[if !supportLists]--> 4.          < !--[endif]--> S chip risk