Origo Partners Share Discussion Threads

[shroder] 31/8/2010 19:27

Yup, I think Liberum mentions it in their April note for valuation purposes.

I also keep an eye on Hunnu Coal,

[mattjos] 31/8/2010 16:55

Shroder ... did you see that Baker Steel Resources also has a sizeable chunk in Gobi Coal? Ticker is BSRT. Interims out today

[shroder] 31/8/2010 10:41

I thought this bit read particularly well;

"Thanks to significant government support, as well as longer term market dynamics supporting growing demand for electric and hybrid vehicles in China and across the world, the market for Unipower's products is expected to witness explosive growth in the years ahead. The Chinese government targets to achieve production capacity of 500,000 electric and hybrid cars in China by 2011.

To this end, the Chinese Government has recently drafted the 2011-2020 new energy automobile development plan, which recommends over RMB 100 billion (US$15 billion) in subsidies be provided to support the electric vehicle market. Furthermore, the Chinese Government recently announced a pilot subsidy programme to encourage private purchases of hybrid and electric cars in the cities of Shanghai, Changchun, Shenzhen, Hangzhou and Hefei.

Under the pilot scheme, consumers will receive a one off subsidy of up to RMB 60,000 (US$9,000) when purchasing a hybrid or electric vehicle. "

edit; From the NY Times

[mattjos] 31/8/2010 10:16

absolutely spot-on choice of investment, imo. Have been casting around for some time to gain exposure to this fast growing sector ..... thought about MTT for a bit but, now that OPP have made this latest investment, I feel the search is over.
V easy to see how Unipower will be floated on to HK or Shanghai in years to come.

This from the latest JD Power Chinese automotive market survey:

China wants to have as many as 20 million clean and fuel-efficient
"New Energy Vehicles" (NEVs) on China's roads by 2020, according
to a recently published Chinese media report. If the goal is realized,
NEVs would account for some 10% of the nearly 200 million light
vehicles forecast to be on China's roads in 2020.
In early August, a Shanghai newspaper said the Chinese
government plans to invest 100 billion yuan ($14.8 billion) between
2011 and 2020 to support the development, production, and sale of
battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles
(PHEVs) in China. The plan calls for the government to provide
substantial financial support to three to five domestic automakers,
as well as two to three domestic makers of batteries and electric
motors.
In addition, more money would be allocated to provide government
subsidies to consumers who buy conventional hybrid-electric
vehicles (HEVs) and vehicles powered by engines that are under
1.6 liters of displacement.
The aim of the plan, according to the report, is to have 5 million
BEVs/PHEVs and 15 million HEVs, on China's roads by 2020. If the
report is accurate-no source was cited for the information--the
news is significant for several reasons.
First, China's plan would be the largest and most comprehensive
government- directed strategy of its kind among the world's largest
auto producing nations. No other country would come close to
China in terms of the size of investment, and volume targets, to
create a NEV industry
Second, to achieve its 2020 targets, China would have to record
average annual sales of 500,000 BEV/PHEVs and 1.5 million HEVs
between 2011 and 2020. Considering that China expects to sell only
a few hundred BEVs/PHEVs (mostly to fleet buyers), and a few
thousand HEVs in 2010, this is a formidable task. To achieve its
NEV sales targets, there will have to be a tremendous shift in buyer
behavior and production capability

[shroder] 31/8/2010 09:25

That's a substantial chunk of (16.5%), overall I really like the direction Origo are taking with new and existing investments.

Commenting on the announcement, Chris Rynning, Chief Executive of Origo, said:

"We see a tremendous opportunity in the electrical and hybrid vehicle market
over the next few years as China and the developed markets in the EU and the US
begin to commercialize lithium-ion battery technologies. We are delighted to be
able to partner with an industry leader like Huanyu to capture this opportunity,
and we look forward to working closely with Unipower and its stakeholders in
growing the business."

[shroder] 30/8/2010 19:01

Not new but relevant,

China set to become largest importer of thermal coal

By Javier Blas in London and Leslie Hook in Hong Kong

Published: June 23 2010 19:13 | Last updated: June 23 2010 19:13

China is set to overtake Japan as the world's largest importer of thermal coal as soon as this year, only three years after China became a net importer of the mineral used to fire power stations, according to an emerging industry consensus.

The speed at which Chinese coal imports are growing is surprising mining companies, traders and policymakers, who had previously not expected China to overtake Japan before 2015.



Traders and policymakers said they expected China's thermal coal net imports to hit 105m-115m tonnes this year, level with or above Japan, which is expected to buy about 110m tonnes. China was a net exporter of coal until 2007.

Fatih Birol, chief economist at the International Energy Agency, said: "China's imports of thermal coal could exceed Japan's this year for the first time."

The coal mining and trading industry largely takes the same view. Some traders believe China and Japan will be "neck and neck" this year, while others say Beijing could overtake Tokyo, based on the pace of imports so far this year.

Full article'



Also related (I would have thought Mongolia geographically are better placed)

[shroder] 15/8/2010 12:17

VW boosts China budget by €1.6bn

By Daniel Schäfer in Frankfurt

Published: April 26 2010 19:19

Volkswagen increased its investment budget for China by €1.6bn ($2.1bn) on Monday, in a move to keep up with rapidly growing demand in the German carmaker's single biggest market.

Europe's largest carmaker said the additional money, mostly earmarked for two new plants, would bring its total investment fund for the next three years for China to €6bn.

"The Volkswagen Group is convinced that these investments will maintain our market leadership in China," said Martin Winterkorn, VW chief executive.

Carmakers from around the world are racing to gear up their production capacity in China, where members of the swiftly growing middle class are striving to purchase their first car.

The Chinese industry association predicts vehicle sales to expand by 20 per cent to 16.5m units this year. This would follow a 45 per cent rise in car sales in 2009.

[shroder] 14/8/2010 12:05

China energy consumption going crazy, good for coal prices I guess.

(translated)

National Energy Board released in July Electricity Consumption

8,14, the National Energy Board released in July consumption throughout society and other data.

7months of Electricity Consumption 389.6 billion kwh, up 13.94 percent, growth of 10.68%. From January to July, Electricity Consumption 2.3989 trillion kwh, up 20.25 percent.

Electricity consumption from the category view, the primary industry 56.6 billion kwh, an increase of 6.13%; the second industry 1.8094 trillion kwh, up 22.69%; tertiary industry 249.1 billion kwh, up 15.39%; urban and rural residents living 283.8 billion.

[shroder] 13/8/2010 08:56

Beta site for Jinan Eco-Energy

[shroder] 01/8/2010 16:31

Interesting reading,

1 August 2010

China's New Industrial Revolution

By Michael Robinson

BBC World Service documentaries


China will soon have more high-speed railway tracks than the rest of the world put together

Take one example: high speed rail.

Five years ago, there was not a single kilometre of high speed track in China. Today, it has more than Europe and by 2012, it will have more than the rest of the world put together.

A vast, spotless factory in the port city of Qingdao is in the front line of this new industrial revolution.

It is here that the giant state-controlled train-making company CSR developed a Chinese high-speed train.

China's leaders "played a strong role in making all of this happen", says CSR's chairman, Xiaogang Zhao.

Foreign know-how

China's leaders started by demanding that any foreign company bidding for a part of the massive proposed high-speed programme to share its technology with a Chinese partner.


Ding Sansan is developing an ultra-fast train

The Japanese engineering giant Kawasaki accepted this condition. A pioneer of high-speed rail, with almost half a century of development to its name, Kawasaki agreed to share its knowledge with CSR.

Siemens of Germany struck a similar deal with another Chinese train-maker.

With access to foreign know-how secured, the government then provided an army of 10,000 engineers and academics to create a Chinese train, Mr Zhao explains.

They did it, he says, in less than three years.

New train

Inside the Qingdao factory, senior engineer Ding Sansan explains how every aspect of the Japanese train had to be redesigned for the faster 350 kilometres per hour running speed that China's high-speed strategy demanded.

Everyone worked so hard on the project that he can hardly remember his last holiday.

"It was a very big challenge", he says.

And it is just the beginning.

Mr Ding is now working on a new train, due to be tested next year at an astonishing 500 kilometres per hour.

Unacceptable condition

Having acquired the technology, China is already exporting it.

This year, CSR supplanted Siemens as lead contractor on a new 440 kilometre high-speed line in Saudi Arabia.

Professor Guosong Liu says China's culture inhibits new ideas
Outside China, the speed at which such leading-edge technologies are being adopted is causing concern.

But China now plans to go one step further.

Under a new proposal, "indigenous innovation", foreign companies bidding for Chinese government contracts will not only have to share existing know-how.

They will also be required to conduct any new research and development work in China.

For some companies this will prove an unacceptable condition, according to Brenda Foster, head of the American Chamber of Commerce in Shanghai.

"It will keep American companies from being able to compete in the Chinese domestic market," she says.

"For some companies, that could actually put them out of business."

Hindering ideas
While America and China argue over "indigenous innovation", China is taking a new, direct approach - encouraging highly-skilled Chinese-born expatriates to return home from overseas, bringing their ideas and expertise with them.

But some of these experts have found that China's top-down, centrally-controlled culture, so successful in delivering technologies such as high-speed rail, can prove an obstacle to innovation.

Top medical scientist Professor Guosong Liu, moved from America to take up a post at Tsinghua, China's leading scientific university.

There, the memory and intelligence-enhancing drugs he has been developing in the US and Germany are being tested on thousands of rats and mice.


Full article,

[shroder] 23/7/2010 09:09

Breaking out on today's news.

[shroder] 22/7/2010 10:11

Unprecedented levels of investment in China

Corning To Invest $800 Million In China LCD Glass Plant

Today : Thursday 22 July 2010

Corning Inc. (GLW), the world's biggest supplier of glass used in flat-screen televisions, said it will invest about US$800 million to build an advanced liquid-crystal-display glass manufacturing facility in Beijing in response to rapidly increasing market demand for flat-screen televisions and computers.

The Corning, New York-based company said in a statement Wednesday the facility will have up to 8.5-generation glass-melting and finishing capabilities. Such a plant can churn out glass sheets used to make television panels bigger than 50 inches.

Corning said it will construct the new facility in Beijing's Digital TV Industry Park within the Economic Technological Development Area. The company plans to break ground on the facility in September, with production slated to begin in the first half of 2012.

[mattjos] 20/7/2010 20:04

shaping up nicely for Q4 i'd suggest :-)

[shroder] 20/7/2010 18:03

Nice late trade..

[shroder] 19/7/2010 21:56

Absolutely Matt, a large proportion of Origos portfolio can now be considered as mature.

It looks as though Xinxiang have updated some of their pages, either that or I missed them first time around.

[mattjos] 18/7/2010 15:44

& where Bolton is targetting his newly launched fund, FCSS. But, i feel Origo have the lead on him and seem much better connected to have the targetted some of the prime opportinities a while ago. I chose this one in preference to Bolton.

[shroder] 18/7/2010 14:17

Not directly related to Origo but shows the level of investment activity in China at the moment.

Chinese beauty market

Published: July 16 2010 09:42 | Last updated: July 16 2010 19:04

Talk of an attractive beauty market. China's spend on cosmetics, skincare and fragrance has quadrupled in the past decade to $12.5bn. Over the next four years, Bernstein Research reckons, the country will contribute a fifth of the sector's global growth, giving it a bigger share of the $180bn or so pie.

This is partly predicated on a mushrooming middle-class, forecast by independent brokerage CLSA to nearly double to almost a billion people; the equivalent to three USAs, by the middle of the decade. Nor is it just the women: L'Oréal says China's market for men's skincare products rose 27 per cent last year and has been rising at a 40 per cent clip this – about five times as fast as women's beauty potions.


Full article here;

[shroder] 16/7/2010 15:42

The largish sellers (150k,250k) are no longer offering on RSP just normal size now - could be they have all been taken out.

[mattjos] 16/7/2010 15:36

Shroder ... it's a well recognised pattern forming here now. bit of longer timescale than might be wished for but nice all the same

[shroder] 16/7/2010 14:48

3rd time lucky 8-]

[shroder] 14/7/2010 14:14

Half a mill at the bid, someones mopping them up.

[shroder] 11/7/2010 18:08

pp, You are absolutely spot on with "pedigree of the selectors and their juggling skills" and I believe this is where Chris and his team excel at.

Some of their recent partnership announcements effectively put them 'inside' as a local company rather than a Western trust investing in Chinese companies.

Given this I am surprised Origo isn't trading at a premium to it's NAV rather than a 50% discount(forecast).

I think Origo prefers small companies which eventually stand a chance of going public and therefore realising a higher valuation (see Gobi)