EANS-Research: BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG / YOUBISHENG Green Paper AG: "Green Dress" for Chinese Consumer Goods (with document)

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Corporate Profiles/IPO, Basic Report, Initiation od Coverage

Frankfurt (euro adhoc) - "Green Dress" for Chinese Consumer Goods
YOUBISHENG Green Paper AG (ISIN DE000A1KRLR0, Prime Standard, YB1) is
an established Clean Tech Leader for the efficient and sustainable
production of high quality Linerboard used for consumer goods
packaging of leading brand manufacturers in the Fujian and Guangdong
region. 1)First Chinese manufacturer to produce high end packaging
material for consumer goods from 100 percent recycled paper:
a.Positive client reception and government support b.Conservation of
resources; environmentally friendly production c.Reduced costs due to
comparatively low raw material prices 2)The Company introduces value
boosting innovations into the highly fragmented Chinese Linerboard
market 3)Innovative products to replace much more expensive and
environmentally unfriendly packaging material (Kraftliner)
4)Innovative products to prevent counterfeiting of branded goods
packaging 5)Tripling of output within 24 months due to growing market
and rising demand for innovative packaging materials highly likely
6)Strategically located in leading consumer goods production region
Currently, its production capacity of Testliner is stretched to the
limit with a utilization of 95 percent. Thus, the current growth can
only be generated by outsourcing parts of the production. However,
given the prosperous Chinese economic outlook and the market changing
product innovations, the Company now intends to expand its production
capacity in order to repatriate outsourced production and to satisfy
the growing demand for packaging material in the region. In order to
finance the capital-intensive investment into a new production line,
increasing capacity from 150,000 to 450,000 tons p.a., the Company
plans to launch an IPO in Germany. The total investment amounts to
ca. EUR 70 Mill., EUR 36.8 Mill. of which are expected to be raised
(net) during the IPO; the remainder of EUR 33.2 Mill. will be
financed by the Company´s operating cash flow. By expanding its
production capacity, the company will be able to increase market
share, to repatriate outsourced production, and - via product
innovations - to protect its margins against expected competition.
Based on our DCF and Peer Group analysis we calculate a post-money
fair value of the equity of EUR 184.5 Mill. or EUR 12.30 per share.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/3mUWMKvK

Further inquiry note:
Dr. Roger Becker
Tel: +49 69 71 91 838 46
E-Mail: roger.becker@bankm.de

For questions, please also contact our sales-desk at +49 69 71 91 838 12.

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/3mUWMKvK

company: BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG
Mainzer Landstraße 61
D-60329 Frankfurt