Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Capital Markets

Cenmingtang Holding / Equity Capital Markets

<p>Cenmintang (CMT) is a snack and beverage producer with over 1000 product varieties, selling within third and fourth tier cities in china. Its product portfolio is classified into two main categories of snack foods and four main categories of beverage products. The deal size is estimated at USD 250m to USD 350m. In this insight, I provide an overview in the executive summary, and hope to answer the following questions:</p><ol><li>What has been driving its growth?</li><li>How does it manage its production and sales channels?</li><li>How did it achieve phenomenal sales growth when peers were struggling to grow?</li><li>What are the price trends of its raw materials?</li><li>What are some other risks that investors should be aware of?</li><li>What are its expansion plans and some concluding thoughts?</li></ol>

Cenmintang (CMT) is a snack and beverage producer with over 1000 product varieties, selling within third and fourth tier cities in china. Its product portfolio is classified into two main categories of snack foods and four main categories of beverage products. The deal size is estimated at USD 250m to USD 350m. In this insight, I provide an overview in the executive summary, and hope to answer the following questions:What has been driving its growth?How does it manage its production and sales channels?How did it achieve phenomenal sales growth when peers were struggling to grow?What are the price trends of its raw materials?What are some other risks that investors should be aware of?What are its expansion plans and some concluding thoughts?

Inner Mongolia Yili Industrial Group (A) (600887 CH)

Cenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp