SCHUMACHER
12-03-2015, 04:32 PM
- EPA are about to realise a take over deal with a well recognised company who have over 100 million USD orders on their books
heres the guff - could be worth a few k investment at such low market cap and share price - looks like the directors own 300 million shares and have not sold 1 share - "skin in the game" by directors is a good sign cheers
Ive been making enquiries with people to get opinions on this recent announcement / deal
Spoke to my Singaporean contact re this share purchase agreement with Goldson - the view is the proposed arrangement is purely a formality in respect to due-diligence relating to agreement terms and in line with what the announcement stated so the opinion is it will be all go once the boxes are ticked (this is not investment advise) and will provide much needed cashflow to carry the company forward with their other projects - more importantly this instantly provide shareholder wealth and competitive advantages as spelled out below- in terms of value add, and near term share price triggers- the other question i asked is what value does this place on EPA based on its current price of .003 c - the response was 'wait and see' now that the company being somewhat de-risked - sorry tried to get a price out of them but were not wanting to say
My impression was that the deal was worth around 1-2c share (5 -10 x current share price) based on the revenue flow from these projects of around 100 million USD assuming a NPAT of 10% giving them 10 million NPAT / 1.5 Bill shares = .006 c share x PE of 5 = 3c share so I'm conservative with 2 c share
1) The company deals with China's HIGH PROFILE high rise construction projects and has been chosen as strategic partner of a major player in China
2) Potential market share once legislation changes this year with respect to replacing the wooden templates with aluminium to reflect offshore marketshare of 30%-60% presents massive growth going forward
3)
the Company has already been awarded projects worth around RMB100 million in 2014. For 2015, the expected contracts and order book is approximately RMB600 to 700 million. Amongst its partners are Chinese Architecture, Vanke, R & F, New Sky Construction, China Resources Group, CITIC Real Estate, China Railway Construction, Guangzhou Municipal Construction, Beijing Construction Engineering Group and other high-profile local companies in the Chinese property development and construction industries.
The Company expanded its production base by completing the purchase of Pincha Plant in Zhuhai City, Guangdong Province with an annual production capacity of 120,000 square meters of construction aluminum template. Together with its other plants at Bao Gang, Tian Yue and Zheng Gao, the total annual production capacity of the Company is 400,000 square meters of construction aluminum template.
4) Due Dilligence- its good to see that EPA will take on the due dilligence The Share Purchase Agreement is conditional on, among other things:
Agreement from all shareholders of Goldson to the terms of the Share Purchase Agreement.
Completion of the due diligence on the revenue generating assets of Goldson to the satisfaction
of Ephraim.
Completion of the acquisition of Allied and BJL by Goldson.
Approval of all relevant regulatory agencies.
The approval of Ephraim shareholders of:
Any requirements of the ASX for shareholder approval.
The consolidation of Ephraim Shares on an approximate 50:1 basis.
c. The acquisition of approximately 59% of Ephraim’s Shares by Gain Empire Ventures
Limited, being the consideration for the acquisition by Ephraim of Goldson.
If the acquisition is successfully concluded, Ephraim will continue its existing business operation, which will in fact be supported financially by the acquired business.
Competitive Advantage:
The Company's collaboration with Guangdong Architectural Design & Research Institute (National Compilation Unit for "Aluminum Alloy Template Technical Specifications") provides a competitive advantage in the design, structure and construction plan of high-rise buildings and provide technical support in aluminum template application and projects.
The Company undertakes the China's high-profile high-rise construction projects and has been chosen as the strategic partner of China Construction 4th Engineering Division Corp. Ltd.
When the national aluminum template specification takes effect in 2015, aluminum template is expected to gradually replace wooden template. The current market share of manufacturers of aluminum template in the local construction market is less than 1% compared to some overseas market where aluminum template command a 30% to 60% market share. The industry therefore has a huge market potential and the Company prospects with its first mover advantage are bright.
heres the guff - could be worth a few k investment at such low market cap and share price - looks like the directors own 300 million shares and have not sold 1 share - "skin in the game" by directors is a good sign cheers
Ive been making enquiries with people to get opinions on this recent announcement / deal
Spoke to my Singaporean contact re this share purchase agreement with Goldson - the view is the proposed arrangement is purely a formality in respect to due-diligence relating to agreement terms and in line with what the announcement stated so the opinion is it will be all go once the boxes are ticked (this is not investment advise) and will provide much needed cashflow to carry the company forward with their other projects - more importantly this instantly provide shareholder wealth and competitive advantages as spelled out below- in terms of value add, and near term share price triggers- the other question i asked is what value does this place on EPA based on its current price of .003 c - the response was 'wait and see' now that the company being somewhat de-risked - sorry tried to get a price out of them but were not wanting to say
My impression was that the deal was worth around 1-2c share (5 -10 x current share price) based on the revenue flow from these projects of around 100 million USD assuming a NPAT of 10% giving them 10 million NPAT / 1.5 Bill shares = .006 c share x PE of 5 = 3c share so I'm conservative with 2 c share
1) The company deals with China's HIGH PROFILE high rise construction projects and has been chosen as strategic partner of a major player in China
2) Potential market share once legislation changes this year with respect to replacing the wooden templates with aluminium to reflect offshore marketshare of 30%-60% presents massive growth going forward
3)
the Company has already been awarded projects worth around RMB100 million in 2014. For 2015, the expected contracts and order book is approximately RMB600 to 700 million. Amongst its partners are Chinese Architecture, Vanke, R & F, New Sky Construction, China Resources Group, CITIC Real Estate, China Railway Construction, Guangzhou Municipal Construction, Beijing Construction Engineering Group and other high-profile local companies in the Chinese property development and construction industries.
The Company expanded its production base by completing the purchase of Pincha Plant in Zhuhai City, Guangdong Province with an annual production capacity of 120,000 square meters of construction aluminum template. Together with its other plants at Bao Gang, Tian Yue and Zheng Gao, the total annual production capacity of the Company is 400,000 square meters of construction aluminum template.
4) Due Dilligence- its good to see that EPA will take on the due dilligence The Share Purchase Agreement is conditional on, among other things:
Agreement from all shareholders of Goldson to the terms of the Share Purchase Agreement.
Completion of the due diligence on the revenue generating assets of Goldson to the satisfaction
of Ephraim.
Completion of the acquisition of Allied and BJL by Goldson.
Approval of all relevant regulatory agencies.
The approval of Ephraim shareholders of:
Any requirements of the ASX for shareholder approval.
The consolidation of Ephraim Shares on an approximate 50:1 basis.
c. The acquisition of approximately 59% of Ephraim’s Shares by Gain Empire Ventures
Limited, being the consideration for the acquisition by Ephraim of Goldson.
If the acquisition is successfully concluded, Ephraim will continue its existing business operation, which will in fact be supported financially by the acquired business.
Competitive Advantage:
The Company's collaboration with Guangdong Architectural Design & Research Institute (National Compilation Unit for "Aluminum Alloy Template Technical Specifications") provides a competitive advantage in the design, structure and construction plan of high-rise buildings and provide technical support in aluminum template application and projects.
The Company undertakes the China's high-profile high-rise construction projects and has been chosen as the strategic partner of China Construction 4th Engineering Division Corp. Ltd.
When the national aluminum template specification takes effect in 2015, aluminum template is expected to gradually replace wooden template. The current market share of manufacturers of aluminum template in the local construction market is less than 1% compared to some overseas market where aluminum template command a 30% to 60% market share. The industry therefore has a huge market potential and the Company prospects with its first mover advantage are bright.