Shares digital

Little-known Asia Distribution Solutions (ADSL:AIM) is hoping to expand its operations in China. The drinks distribution firm – it imports Heineken beer into the country – currently concentrates on three areas; Shanghai, Tianjin and Chengdu, but it plans to widen its business to include Beijing and other major cities.

Demand is growing strongly for foreign-branded beers, wines and soft drinks in China and Asia Distribution last month sealed two acquisitions to strengthen its hand, buying the Chengdu Gao Li Yuan Beverage Co, for up to RMB 2 million, and the Shanghai Run Ke Trading Co for as much as RMB 7 million just a week later.

The company, which floated on the junior market in November at 29.5p, is thought to be busily hunting for more acquisitions in these new markets and news is expected on this soon. The shares have refused to budge far from their original float price so far but house broker Evolution is expected to issue a research note very soon – a move which could flag up the firm’s growth ambitions and the attractiveness of the shares, particularly with the Beijing Olympics just a few months away.

Shares says: Certainly one to watch.