CLSA completed a top up placement for Playmates yesterday (Tuesday) raising $26.7 million for the toy manufacturer. The placement comes after a 686.36% rise in the company's share price year-to-date and follows the re-launch of its Teenage Mutant Ninja Turtle toys in January this year.
The shares were priced at HK$1.60, representing a 7.5% discount to the stock's HK$1.73 close. The deal equates to 10% of issued share capital and about13 days trading volume.
It will see controlling shareholder Thomas Chan's stake in the company drop from 43.33% to 39.67%.
Despite the phenomenal rise in the company's share price, some argue that there is still some value in the stock, which is trading at 12 times 2004 earnings.
Analysts forecast a 100 times increase in net profit this year on the back of the success re-launch of the turtles, which are predicted to be one of the top selling toys this Christmas in Europe and the US. From a net profit of HK$1 million in 2002, analysts say the company may record a HK$100 million figure this year.
The turtles are expected to account for about 40% of revenues, with Disney princess dolls a further 25% and speedeez mini vehicles a further 10%.