Aupu sees earnings growth topping 43pc

Aupu Group Holding, the largest maker of home bathroom electrical appliances in China which plans to raise about HK$250 million in an initial public offering next month, has forecast more than 43 per cent growth in full-year earnings thanks to higher sales volume.

The company expects net profit this year of not less than HK$79.2 million or 11.6 HK cents per share. Last year, it earned 55.3 million yuan or 11 fen per share, according to its listing prospectus.

Aupu earned 33.1 yuan million in the first five months of this year, up from last year's 14.5 million yuan. The Hangzhou-based firm said it aims to make a 30 per cent dividend payout after its listing.

Aupu is offering 183.6 million shares to institutional investors and 20.4 million shares to retail subscribers. Its indicative price range is 93 HK cents to HK$1.23 per share - eight to 10.6 times earnings this year and 6.3 to 9.4 times profit next year.

The institutional tranche is at least four times oversubscribed, a source close to the transaction said.

'The overwhelming response came mainly from mainland investors given Aupu's famous brands there,' the source said. Aupu claims to have 40 per cent of its home market for bathroom lighting, ventilation and heating devices.