Templeton invests in China’s Tongda Group

The fund purchased 300 million shares in Hong Kong-listed Tongda. Based on the company's closing price the day before the transaction was completed, the investment is worth HK$100.5 million ($12.9 million).

"The company is a leader in in-mould lamination (IML) technology for decorative components in China, with a very strong competitive position and a broad base of satisfied customers," said Dr. Mark Mobius, executive chairman of Templeton Asset Management. "Considering the huge and growing Chinese handset market as well as increased penetration of Chinese brands in global markets, we are very positive on the potential growth in Tongda's business in the coming years."

Yanan Wang, chairman and CEO of Tongda, added that the company would continue to focus on handsets and the development of ultra-thin, functional components used in the latest smart phone models. Tongda also has a strong position in notebook computer casing and related products and is looking to expand into internal LDS antennas.

The company's first half profit attributable to shareholders rose 11% year-on-year to HK$113.3 million against revenues of HK$1.39 billion, up 9.2%.

Revenue from handsets and notebook computers increased 34.3% and 40.8%, respectively, over the period, but the broader electrical appliances division posted a 30.2% decline in sales. This was driven by a phasing out of government subsidies on consumer electronics and a slowdown in the real estate market, which hit sales of household appliances.

The Templeton Strategic Emerging Markets Fund launched in March and has a fundraising target of $300 million. The vehicle is run by Templeton Asset Management, which had $40 billion in assets under management as of November.

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• Topics
• Industrials
• Greater China
• PIPEs
• manufacturing
• China
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• Franklin Templeton