China Stationery Limited IPO

China Stationery Limited, an integrated plastic stationery China-based company is scheduled to be listed in Main Market on 27th July 2011.

The IPO consists of public issue of 90 million ordinary shares at an IPO price of RM0.90 per share with SGD0.001 par value. Out of this, 60 million shares are allocated to Malaysian public, and the remaining 30 million shares are allocated for private placement. On top of that, 133 million shares are for sale to selected investors.

The IPO is expected to raise RM85.5 million.  The proceeds will be used for the purchase of machinery, for research and development, advertising, branding and promotional activities as well as working capital and listing expenses.

China Stationery will launch two new patented products namely anti-tampering plastic envelope and second-generation plastic tape printer this year. The target customers for the new products are global express mail service players as well as post offices in China and other countries.

Its manufacturing plant is located in Fujian province, China and plan to establish a factory in Malaysia within a year.

The company’s house-brand products are marketed in China and globally in over 45 countries to more than 400 customers, including distributors, retailers and corporations located in China, Asia, Europe, America and other regions.

China Stationery intends to pay up to 20 percent of their net profit as dividend starting from 2012 onwards.

The table below is the financial summary for China Stationery Ltd.

	FYE 2007	FYE 2008	FYE 2009	FYE 2010	FPE 2010	FPE 2011
Revenue (RM’000)	233,179	413,380	556,304	669,878	371,770	451,049
Profit after Tax (RM’000)	97,240	126,299	168,518	189,072	102,203	105,904

M&A Securities is the Adviser, Underwriter & Placement Agent Adviser, while Sanston Financial Group is the Sub-Placement Agent for the IPO.

For those who are interested in China Stationery IPO you may subscribe at ATM machines or viaInternet Banking.

The subscription period is opened until 10th February 2012 at 5pm. Tentative balloting date is on 14th February while the allotment date is on 23rd February 2012.

View China Stationery prospectus in Bursa Malaysia webpage.

China Stationery Ltd stock name in Bursa Malaysia is “CSL”.

Should you invest in SARA 1Malaysia Fund?

Our government launched the Skim Amanah Rakyat (SARA) 1Malaysia which is offering 32.16% return per annum on your investment. Is this too good to be true? 32.16% return is definitely higher than most of the investment vehicles available in the market right now.

How it works?

SARA 1Malaysia is a hybrid of a unit trust investment and a loan product aimed at encouraging low-income earners to save and invest.
1. Invest with your own money.
The investment is limited to RM5000 per household and you’ll receive RM134 dividend every month up to 5 years, according to PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman.
In this case, the effective rate of return is more than 30% per annum!

2. Invest with bank’s money (taking up RM5000 loan)
You’ll still receive a handsome dividend of RM134 a month and after deducting the bank’s monthly repayment of RM84, you get to enjoy a profit of RM50. But in this case you’re not forking out any money so the actual return is “INFINITY”. These is how rich people get rich by using other people’s money to invest.

For how to calculate the actual return, you can refer to this great article by LCF:
SARA 1Malaysia Return Calculation

Are you qualified?

The purpose of this investment scheme is to help the poor to start investing and saving.
You are qualified to invest the fixed amount of RM5000 if

• Malaysians aged between 18 and 58 years;
• Applicants must have a combined gross household monthly income of between RM500 – RM3,000;
• Applicants must not be declared bankrupt throughout the loan funding period
• Applicants and / or spouse(s) must not be a beneficiary of other Government special schemes managed by Amanah Saham Nasional Berhad (ASNB) i.e.”Program Pembangunan Rakyat Termiskin (PPRT)”, “ASB Sejahtera” and “ASW2020-Bandar”;
• Applicants and / or spouse (s) do not have any investments in ASNB unit trusts, OR, if there is, applicants and /or spouse(s) (household) have a combined aggregate investment totaling RM10,000 or less in all ASNB products;
• Only one household is eligible to obtain the loan funding

How to invest?

• Apply for loan from any of these 4 banks: Maybank, CIMB, RHB and Bank Simpanan Nasional 
• Applications open on January 30th 2012 and will extend for a year or upon full subscription. (I think it will be fully subscribed within the first few hours, if not days)

More information: visit the official website: SARA 1Malaysia.

Should you invest in SARA 1Malaysia Fund?

So now it comes to the big question of whether you should invest in SARA 1Malaysia fund?

I guess if you are eligible, the question should be “why not?”. Get the loan to invest. It is free money.

What do you think about this investment scheme? Are you eligible to invest?