Si Mei Te Food (OTC BB:CADQE)

WEB NEWS

All | Comments & Business Outlook | Financial Target Agreements | SPAC Activity

Saturday, September 4, 2010

Comments & Business Outlook

Excerpt from a recent notice of late filing:

Based on preliminary unaudited results of operations, the Registrant anticipates that it will report an increase in sales to $219 million for the year ended December 31, 2009, from $175 million for 2008, due to increase of both sales volume and selling price during 2009. The Registrant is currently unable to provide an estimate of its net income for 2009 because it is currently accessing the impact of the June 2009 acquisition of all of the outstanding securities of Gliston International Limited (“Gliston”), the parent company of HeNan Smart Food Company Limited. Based on preliminary unaudited results of operations, the Registrant anticipates that net income of Gliston for 2009 will be approximately $30 million, compared to $22 million for 2008.

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Sunday, July 25, 2010

Financial Target Agreements

Pursuant to an earn-out provision in the share exchange agreement, the Company has agreed to issue to Gliston’s shareholders up to 6.8 million additional shares if the following net income targets are achieved (calculated on a U.S. GAAP basis): ).

  2011  Target %
Change		 2010  Target %
Change		 2009  Target % Change 2008 Reported
Unaudited Net Income U.S $  $52.0 M 30.0% $40.0 M 33.33% $30.0 M 215.80% $9.5M
  

Source: SEC Filing

Note: The company has yet to file its 2009 annual report (20F).

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Monday, June 29, 2009

SPAC Activity
China Discovery Acquisition Shares falling sharply.  The GeoTeam was unable to locate any news on the company, but is speculating that there may be a problem consummating its proposed share exchange agreement with HeNan Smart Food Company.
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Wednesday, April 15, 2009

SPAC Activity

China Discovery Acquisition entered into a an agreement to acquire HeNan Smart Food Company, a leading instant noodle producer in China.  The transaction is still subject to shareholder approval.

Details:

  • China Discovery Acquisition Corp. will issue 14.7 million shares and cash consideration of $3.0 million in exchange for 100.0% of HeNan Smart Food Company
  • Si Mei Te is a leading instant noodle producer in China, the largest instant noodle market in the world. Si Mei Te produces and sells its products under several well-known brands and is ranked among the top 5 instant noodle producers in China based on market share.
  • After the closing, China Discovery will have approximately 21.8 million basic shares outstanding and 24.4 million fully diluted shares outstanding.

Financial Table ( Fiscal Year Ends in December)

  2008 2007 Period Change
Revenue $175.8 million $136. million 29%
Unaudited Net Income $22.7 million $11.88 million 91%
*EPS $0.93 $0.49 90%

2009 Growth Potential Based on Net Income Incentive Targets

  2009 Targets 2008 Actual Period Change
 Net Income $30.0 million $22.7 million 32%
*EPS $1.23 $0.93 32%

Valuation Ratios

Trailing P/E Ratio 6.17
P/E on 2009 EPS Target 4.67
PEG Ratio on 2009 EPS Growth .19

* The company did not provide EPS Data.  The GeoTeam® used the post merger fully diluted shares outstanding of 24.4 million to calculate EPS data.  Tax rates for the company were not disclosed.  At first glance the valuation metrics appears attractive.  The GeoTeam® will follow this story closely and provide an update if warranted.  Specifically, additional information is needed on tax rates and 2009 capital raising goals.  Both of which can effect  GeoTeam® EPS assumptions.

Source: PR Newswire (April 14, 2009)

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