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EastBridge (EBIG): Capitalizing on China’s Education Sector

EastBridge (EBIG): Capitalizing on China’s Education Sector

EastBridge Investment Group Corp (OTCBB: EBIG), a provider of financial services designed to help emerging companies access U.S. capital markets, is poised to capitalize on China’s rapidly growing education sector. Its clients, Tsingda and Wonder Education, operate alongside companies like Global Education & Technology Group (NASDAQ: GEDU), which has more than doubled since it agreed to be acquired, and Chinacast Education Corporation (NASDAQ: CAST), which has been trading 30% higher amid M&A talks, last week.

China’s Enormous Education Market

China has approximately 400 million students in its educational system and a 99% attendance rate to primary school. With more than 70,000 private schools opening since the 1980s and significantly higher spending on education as a percentage of income than the United States, the country has become a great opportunity for for-profit educational institutions.

The growth in the market can be clearly seen in the results of some larger companies in the space. For instance, the industry’s largest publicly traded company, New Oriental Education, saw revenues that grew from $132 million to more than $557 million between 2007 and 2011, while its net income more than tripled from 20 cents to 65 cents per share.

Cottage industries surrounding this vast educational industry are also rapidly growing. For example, after school programs are far more popular in China than the U.S., while vocational schools have been soaring in popularity as a quick way to gain an education and find a job without spending years in a traditional university.

Wonder and Tsingda Offer Great Exposure

EastBridge Investment Group owns approximately 3.4 million shares of Wonder Education and more than 2 million shares of Tsingda Education, according to regulatory filings made with the SEC. These two companies represent strong and rapidly growing companies within the booming for-profit education market in China, making them very valuable for EBIG shareholders.

Tsingda Education is a leading provider of online educational services in China, offering classes through pre-recorded lessons and in real-time via its virtual internet classroom. As of December of last year, the company operated 2,346 learning centers across the country, including 21 company-owned and 2,325 franchised locations.

Wonder Education has been named one of China’s ten major brands in computer education for several years by the Ministry of Information Industry, the Ministry of Labor and Social Security and Computer World. The company’s seven vocational schools have relationships with more than 20 provinces and municipalities and serve more than 12,000 students.

A Great Investment Opportunity

EastBridge Investment Group unlocks value for shareholders in several ways. First, the company offers equity dividends to its shareholders. Second, the remaining equity is held on its books as a valuable liquid asset. And finally, any stock that is sold is booked as revenues and net income that help drive growth moving forward.

Meanwhile, earnings multiples for China’s education sector continue to look strong with several recent buyouts. The average P/E in the education industry stands at about 22x, which is the highest in the country and compares favorable to the 16.3x average. And with an average market capitalization of $621.8 million, it’s also one of the most valuable industries.

The company’s stakes in Tsingda Education and Wonder Education could unlock significant value in its shares. Despite some market issues during the past few months,, the company is moving forward towards listing Tsingda and Wonder on a U.S. exchange, while both companies look for opportunities  to grow its business. With these near-term catalysts in mind, investors may want to take a closer look at EastBridge.

To learn more about EastBridge, see the following links:

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EastBridge (EBIG) Releases AREM Pacific Investor Factsheet

EastBridge (EBIG) Releases AREM Pacific Investor Factsheet

EastBridge Investment Group Inc. (OTCBB: EBIG), a provider of financial services to emerging companies looking to go public on U.S. exchanges and those looking to form joint ventures, recently released an investor factsheet on client AREM Pacific Corporation. AREM Pacific is Chinese luxury resort developer similar to companies like Jinling Hotel Corporation Ltd. (SHA: 601007) and Shanghai Jinjiang International Hotels Development (SHA: 900934).

AREM Pacific Business Overview

AREM Pacific Corporation began as an Australian winery and small marine leisure boat manufacturer in China, but has since become the first U.S. company setting up exclusive air-water-land resort and convention centers in China. Bringing together houseboats, aerochutes, seaplanes, and water recreation facilities, the company plans on offering a wide range of activities in many locations around six premium lakes and two ocean front locations. AREM Pacific offers a diversified investment opportunity in hotels, food & beverage, and other hospitality elements.

Recent financial results include:

  • Revenue 2008 :  $103,754  ,  Net Income: ($7,825) (audited)
  • Revenue 2009 :  $121548,  Net Income: $4,111 (audited)
  • Revenue 2010 : $100,821, Net Income: $4,437 (audited)

AREM Pacific Market Overview

China is the world’s third most visited country in the world. The number of overseas tourists was 55.98 million in 2010. As for the domestic demand, there are over 100 million Chinese whose incomes are commensurate with the incomes of the developed countries; yet, they have not had an opportunity to access these high end integrated resort facilities, because these facilities do not exist thus far in China. As a result, AREM believe there is a strong pent up demand.

AREM Pacific’s highlights within this market include:

  • Signed several master water front leaseholds at below market rates
  • When finished, these will be show case air-water-land resort & convention centers in China
  • Subleasing the land to the hospitality operators, who will build and operate their own sites
  • Low capital requirement and high ROI in a short time

AREM Pacific’s Recent Achievements

  • Signed a 40-year master leasehold on a lake front shore line with a total land area of 285 acres in Hunan, China. The lease cost is at a substantial discount to the market price, and the land will be developed into an air-water-land resort & convention center. A prominent hotel has already signed a sublease to use a parcel of the land to build and run a hotel on site for retail customers. AREM will put in a convention and resort center for conventioneers, together with private villas on the site.
  • Master leaseholds on five lakes and two ocean front land properties in China are being negotiated. AREM will also sublease these spaces out to the hospitality operators.
  • Exclusive distribution agreements in China for the aerochutes, sky cars, private hydro planes, houseboats and yachts from Australia have been signed. These vendors are ready to provide equipment at substantially reduced costs to AREM.

AREM Pacific Competitive Overview

AREM Pacific is the first and only company that introduces an integrated air-water-land leisure and provides high end hospitality services to China. These services include holiday resorts, conference / exhibition centers, marine facilities offering houseboats, seaplanes, hot air balloons, skycars, aerochutes and private planes.

Similar listed companies include:

  • Jinling Hotel Corporation Ltd. Nanjing provides guest rooms, restaurants and bars, meeting and events services, health and recreation services.
  • New Taohuayuan Culture Tourism Co., Ltd. owns and operates the Taohuayuan Inn hotel and resort, Xi’an offers hotel rooms only.
  • Shanghai Jin Jiang International Hotels Development Co. Ltd. is principally engaged in management and operation of hotels and restaurants.

About EastBridge Investment Group

EastBridge Investment Group focuses on high-growth companies in Asia, offering IPOs, Joint Ventures and Merchant Banking services. The Company targets industries in the education, internet, energy, mining and service sectors. To learn more about EastBridge Investment Group go to our web site: www.EbigCorp.com. To receive EBIG’s email alert, send a blank email to info@EbigCorp.com. Join us on Facebook at the following link: http://www.facebook.com/ebigcorp.

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EastBridge (EBIG) Makes Significant Progress So Far in 2011

EastBridge (EBIG) Makes Significant Progress So Far in 2011

EastBridge Investment Group Inc. (OTCBB: EBIG) is a provider of financial services to emerging public companies, with clients in the same industries as companies like New Oriental Education & Technology Group Inc. (NYSE: EDU) and Tesla Motors Inc. (NASDAQ: TSLA). In 2011, the company added several new clients and brought its existing clients closer to an initial public offering (IPO).

The company generates income through a combination of cash fees and equity stakes in its clients. By taking these clients public on U.S. stock exchanges, the firm generates significant long-term and short-term value. Typically, the company will divest part of its equity stakes via an equity dividend to its own shareholders, sell a portion to cover its operations and keep some on its balance sheet as an asset.

Several Clients Move Closer to an IPO

EastBridge was forced to delay the initial public offerings of several clients due to poor market conditions. Despite their strong financial performance, the companies opted to delay their offerings in hopes of obtaining a higher earnings multiple on their stock. These delays may have caused some concerns for EBIG shareholders, but in the long-run, they were likely the best decision.

Now, the wait appears to be drawing to a close. Tsingda Education engaged a new underwriter for its IPO in July of this year that pegged its value at about $4.56 per share. Just a month later, EastBridge issued a dividend of that stock to shareholders at a ratio of 486-to-1. Other clients like Dwarf Technologies also recently registered shares with the SEC in a preliminary step towards an IPO.

Consulting Clients Drive Near-term Income

EastBridge has also started signing more consulting clients that could help generate near-term income. In June, the company succeeded in assisting FIZZA LLC in obtaining $200,000 in seed capital that it needed to bring its first product to market. Meanwhile, the company is working with U.S.-based Cambrium Learning to expand by forming joint ventures with education companies in China.

These companies typically make up-front payments with an equity kicker in a transaction that generates short-term and long-term value. And with several other potential consulting agreements in its pipeline, the company could be poised to unlock significant value over the coming quarters.

A Great Investment Opportunity

EastBridge Investment Group (OTCBB: EBIG) represents a solid investment opportunity. While it has faced some timing setbacks, the decision to delay some of its IPOs could end up unlocking significantly more value. Meanwhile, its consulting agreements promise to generate near-term income and long-term potential. In the end, these factors could lead to a strong end to a great year in 2011.

Learn more about EastBridge:

-EastBridge Announces Shareholder Conference Call on Wednesday, October 5th 2011
-Company Website
-View Recent SEC Filings

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EastBridge (OTCBB: EBIG) Offers Investors Access to China’s Market

EastBridge (OTCBB: EBIG) Offers Investors Access to China’s Market

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, with clients similar to companies like Chinacast Education Corporation (Nasdaq: CAST) and China Education Alliance, Inc. (NYSE: CEU), offers a unique service for Chinese companies and investment opportunity for investors.

The company’s business model involves assisting companies with the regulatory requirements for becoming a U.S.-listed public company in exchange for a cash fee and equity stake. A portion of this equity stake is often spun off to EBIG’s shareholders, while the rest is either sold to generate operating cash flow or held on its balance sheet as a short-term or long-term asset.  EastBridge also earns cash by helping U.S. companies access Asian markets by facilitating joint venture agreements.

Diversified Portfolio of High-Growth Clients

EastBridge Investment Group offers investors diversified access to China’s growing economy. From a for-profit education company generating $45 million a year in revenues to a manufacturer of luxury yachts, the company’s 10% to 20% equity stakes in client companies offer its own shareholders a very diversified play on China’s growing economy.

The company’s clients include education companies like Tsingda Education, Wonder Education and Cambium Learning, manufacturing companies like AREM Pacific and Fizza Beverage,  technology companies like Dwarf Technologies and many more each year. Meanwhile, two of its clients are approaching an initial public offering in the United States that could unlock significant near-term value for shareholders.

A Unique Service, a Growing End Market

EastBridge provides a unique service to its clients, particularly at a time when China’s government is raising interest rates and bank reserve requirements. By helping companies raise money in the United States, these companies can access much-needed capital to support their rapid expansion in one of the fastest growing major economies in the world.

And then there’s the country’s enormous domestic growth. “As developing Asia’s people secure their middle class status, its emerging consumers are very much expected to become the next global consumers and assume the traditional role of the U.S. and European middle classes,” reads an Asian Development Bank report from 2010, highlighting the country’s enormous potential.

A Great Investment Opportunity

Investors interested in learning more about EastBridge Investment Corp (OTCBB: EBIG) should see the following resources:

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