Far Eastern Polychem Industries, a Taiwan-backed polyester products manufacturer, is planning to seek an A-share listing in Shanghai next year.
Chairman Douglas Tong Hsu said the company was seeking a better valuation. 'Shanghai stocks' average [price-to-earnings] ratio is at least more than 20 times,' Mr Hsu said.
At its Growth Enterprise Market close of HK$2.45 yesterday, the company was traded at a PE ratio of 4.9 times, based on last year's 50 HK cents earnings per share.
Far Eastern Polychem is the largest polyester manufacturer in China. It is a subsidiary of Taiwan-listed Far Eastern Textile, the flagship of Taiwanese conglomerate Far Eastern Group.
It plans to file an application for an A-share listing some time next year, because it still needs to meet the three-year profit track record requirement, Mr Hsu said.
The company began mainland operations in 1999 after completing a production complex in Pudong. If its A-share offering progresses smoothly, the counter could be listed in Shanghai as early as 2004.