H-share candidate Nanjing Panda Electronics Group will sell new shares at about nine times 1995 earnings, said to be expensive by some fund managers. The television maker also has to be prepared for poor market sentiment on H-shares after Jilin Chemical Industrial Co last week reported cost overruns of 4.7 billion yuan (about HK$4.37 billion) on an ethylene project. Investors are worried about hidden problems in mainland companies. Today Panda will go on an international roadshow after an almost two-week delay. The company tentatively set the price at between $2.10 and $2.35 for the 242 million shares on offer, which will raise up to $569 million. The company will not provide a forecast for this year's profit in the listing prospectus. On estimated earnings of 178 million yuan for last year, excluding interest income from listing proceeds, the shares will be sold at between eight and nine times earnings on a fully diluted basis. According to the projection by sponsor Peregrine Capital, Panda's net profit will rise 38 per cent to 246 million yuan this year and 31 per cent to 322 million yuan next year. The forecast put Panda's prospective price-earnings ratio at 5.8 to 6.5 times this year. Yeh Ching-ju, senior investment manager at HSBC Asset Management, said: 'I do think it's a little bit expensive. 'There is a lot of new issues coming out at six and seven times. For the company, there is not much exciting story to tell. 'It is primarily in the television market that's very stable.'