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China Shengda Packaging Group (CPGI) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
China Shengda Packaging Group (NASDAQ:CPGI) is a paper packaging company in China. The company makes and sells color-printed corrugated cartons that are used in wide range of industries such as cigarettes, food and beverage, pharmaceuticals, furniture, chemicals, machinery, and motorcycles. The company sells single, double and triple layer cartons depending on the weight of the contents and the durability necessary. Because of the bulkiness and weight of moving paper packaging materials, Shengda's manufacturing facilities are located in the Yangtze River Delta (YRD). This region has a high density of manufacturing facilities and allows Shengda to have close access to its customers. In 2009, the company had a maximum annual production capacity of 456M square meters, and it produced 307M square meters over the year. This corresponds to a 67% utilization rate.[1]
In terms of tonnes of corrugated paper cartons, the paper packaging industry in China has grown by a compounded annual growth rate of 19.8% from 2005 to 2009. The industry is expected to grow at a 15.9% compounded annual growth rate from 2009 to 2013. This would mean that the Chinese corrugated paper packaging market would overtake the US market by 2013. If this proves true, the Chinese market would be the largest in the world by 2013. Shengda hopes to take advantage of this massive growth over the next 3 years.[2]
The company's initial public offering of stock on the NASDAQ occurred on December 9, 2010. The company offered 8.1M shares each for $4 each. The company had originally planed to sell 10.1M shares within the range of $5.5-$6.5. The lead underwriters of the deal were Oppenheimer Holdings (OPY) and William Blair.[3]
In 2009, the company's total revenues were $95M. This was an approximately 3.2% increase over its 2008 figure of $92M. Net Income in 2009 was $12.2M, which was a 35.6% increase over its 2008 figure of $9M. [4]
References
- ↑ CPGI S-1/a 2010 PROSPECTUS SUMMARY "The Company" pg 1
- ↑ CPGI S-1/a 2010 PROSPECTUS SUMMARY "Our Industry" pg 2
- ↑ Renaissance Capital - IPO Home "China Shengda Packaging Group prices downsized IPO at $4, below the range" 10 Dec 2010
- ↑ CPGI S-1/a 2010 PROSPECTUS SUMMARY "Summary Consolidated Financial Information" pg 10
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