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Strategies & Market Trends : Greater China Junior Stocks

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To: Julius Wong who wrote (277)	9/26/2003 8:54:29 AM
From: Crossy	Read Replies (1) of 1992

re: 8095.HK - Beida Jade Bird Universal SciTech- $0.83 Homepage : jbu.com.cn just found out about this one. IMHO a very interesting company and probably the most promising way to play the semiconductor field in China.. Traded on the GEM (Growth Equity market) in HongKong They are an offshoot from the Beijing technical university. Networking, Security, Wireless, etc. all here. They even have vast internal IC-design capabilities (ASICs, FPGAs, ASSPs). But what I like most is that their marketcap is just 250m HK$. Yet the company reportedly owns a 5% stake in SMIC (Shanghai Microelectronic) the most advanced Fab in China (0.18 micron capable, moving to 0.13 micron fast). Now the stake was totally "written off" last year (no market price for SMIC stock) which ate into earnings. However that is past. Noteworthy are 2 items here: it cost more than USD $1.5BN to build SMICs current fab structure (2 fabs) - amounting to HK$ 12000m - Now 5% (Beida Jade Bird'S stake) should be worth more than $600m marketcap historic cost wise. However it should be taken into consideration that the most recent round of financing to SMICs further expansion was undertaken at TWICE BOOK VALUE (!). That alone should have lifted the value of Beida Jade BIRD's stake to more than HK$1000m. Apart from this "ASSET PLAY" potential the PSR of Beida Jade Bird Universal is also quite good - around 1.00 Now there will be a way to UNLOCK this value soon because SMIC, an upcoming contract fab service player, is reported to IPO on the NYSE in the first half of 2004. I think that BEIDA JADE BIRD (8095.) is a great asset play. You get the company for free, yet it'S a decent company.. If the above mentioned developments materialize, a 3-10bagger could be obtained here longterm, depending on the IPO price of SMIC rgrds CROSSY

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