Shares of Prince Frog (1259) plunged up to 27.% yesterday after its 2013 earnings fell, and the child-care products maker said it may repurchase shares again

April 11, 2014 Leave a comment

Prince Frog thinks about reverse hop
Friday, March 28, 2014
Shares of Prince Frog International Holdings (1259) plunged up to 27.3 percent yesterday after its 2013 earnings fell, and the child-care products maker said it may repurchase shares again.

The stock hit a one-year low of HK$2.32 before closing at HK$2.38 – down 25.4 percent. It came a day after the Fujian-based firm said net profit last year tumbled 17.2 percent from 2012 to 200 million yuan (HK$249.6 million).

“We would not rule out the possibility of buying back more shares or increasing our stake to regain investors’ confidence,” chairman and chief executive Li Zhenhui said yesterday.

The firm undertook a share repurchase when the stock plunged up to 50 percent after a report by short seller Glaucus Research last October that claimed it had faked key sales figures and other numbers.

The firm also said it will be inviting investors to visit its market in third- and fourth-tier cities.

Chief financial officer Hong Fang said the firm intends to acquire other baby product brands as well as logistic firms in northern China.

It is currently based in Fujian and focused mainly on the southeastern part of the country.

She expects capital expenditure could reach 80 million yuan.

Also, the dividend payout ratio will be maintained at 20 percent. KAREN CHIU

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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