IPO purchase recommendations:

The company is a mature and growing international freight forwarding service provider. The company employs around 1,000 people in 16 countries in Asia, the Netherlands and North America. According to the Ipsos report, based on the tonnage of air cargo exported by members of the International Air Transport Association in Hong Kong from January to December 2013, the company ranked 15th, with air transport exports of about 17,322 tons, with a market share of about 1.6%.

In recent years, Hong Kong's freight forwarding service industry has gradually shifted from sending shippers' consignments to consignees within specified times to shipping high-value goods and providing high value-added services (such as warehousing, packaging, sorting, assembly, pricing, distribution and overall logistics solutions). The destinations for freight forwarding services are increasingly international. It is anticipated that freight forwarders with market share in mainland China and the rest of Asia, North America and Europe and are willing to invest in information technology and other infrastructure to support a wider range of services will increasingly benefit from this competitive pattern.

For the years ending 2011/12/31, 2012 and 2013/12/31, the Company's revenue was approximately HK$2,319.9 million, HK$2,633.9 million and HK$3,161.3 million respectively. Net profit attributable to shareholders was approximately HK$51.2 million, HK$37.8 million and HK$46.4 million respectively. If the sale is successful, the company's market value is between HK$42-520 million, corresponding to 9-11 times PE in 2013 and 1.13-1.52 times PB. The valuation is reasonable but not attractive. It is recommended to purchase carefully.