*DAWN VICTOR(5524HK) 5.5 6/5/2018

ISSUER	BOND	YTW	YTM	Price	Dur	穆迪	SP	Finn	Special Feature	Updated
DAWN VICTOR(5524HK)	5.5 6/5/18	4.830%	4.83%	101.55	2.3	NA	NA	NA	callable	12/3/15
				101.73						1/19/16
			4.47%	102.125						3/21/16

最新債價參考(BOC)

最新債價參考(FSM)

• Dawn Victor Limited is looking to issue 3-year USD-denominated bonds with an indicative yield of 5.75%
• Founder Information(Hong Kong) Limited is the guarantor
• Issuer and Guarantor are subsidiaries of Peking University Founder Group Company Limited, which is in turn 70% owned by Peking University
• Group involved in IT, healthcare, pharmaceuticals, finance, securities and bulk commodities trading
• Holds interests in six publically-listed companies (Shanghai, Shenzhen and Hong Kong)
• Peking University Founder Group Company Limited delivered net profit of USD314m in FY2014 on revenues of USD12.048b; EBITDA of CNY7.006b in FY2014 for EBITDA/Interest Expense (interest coverage) of 1.8X

Understanding the company’s Ownership

The bond’s guarantor, Founder Information (Hong Kong) Limited is 81.64% owned (both direct and indirect interests) by Peking University Founder Group Company Limited, a company headquartered in the PRC. Peking University Founder Group Company Limited is a state-owned conglomerate which is closely affiliated to Peking University (and hence, the PRC government), due to Peking University’s 70% ownership of Peking Founder Group Company Limited; the other 30% stake is held by Beijing Zhaorun Investments Management Co., Ltd, which is controlled by employees of the group.

Owns stakes in various listed entities

Peking University Founder Group Company Limited is involved in information technology, healthcare and pharmaceuticals, finance and securities, bulk commodities trading and other businesses such as property management, property development, education and training, and steel production. At the time of writing, the group held key interests in six publically-listed companies* (listed on the Hong Kong Stock Exchange, Shanghai Stock Exchange as well as the Shenzhen Stock Exchange).
*Group’s stakes in Founder Securities, PKU Healthcare, Founder Holdings, China Hi-Tech, Founder Technology and PKU Resources Holdings range from 11.65% to 57.15%.

Fairly strong indication of government support

Peking University is wholly-owned by the Ministry of Finance of the PRC, and is controlled by the Ministry of Education. Given that Peking University holds a majority (70%) stake in Peking University Founder Group Company Limited (which in turn holds 81.64% of the bond’s guarantor), this implies a fairly strong level of government support for the entity.

Conglomerate was profitable in both 2013 and 2014

Based on filings relating to the bond issue, Peking University Founder Group Company Limited delivered net profit of USD314m in FY2014 on revenues of USD12.048b; the group was also profitable in 2013. In relation to interest coverage, the company recorded EBITDA of CNY7.006b in FY2014, to derive an EBITDA/Interest Expense (interest coverage) of 1.8X, which suggests a reasonable ability to continue servicing its liabilities.