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EDGE has article with HLA which owns China's largest diesel engine, manufacturer with sales of RMB 85 Billion, and expanding fast.....
Growth stock, China mega manufacturer and Spore construction player.
HLA will continue to benefit from the ongoing construction industry boom and now its China Diesel Engine division is stirring with US interest (See EDGE). Vested....
This stock has been rallying with no signs of letting up ever since CIMB has raise its target price to 3.85. The stock rallied again today after DBS release its target price for this stock at 3.78. The important to note is that this company is one of the 2 bidders for sentosa IR. It had already won the exclusive contract from Marina IR. Given the tight supply and its contacts in Malaysia this company is in a good position to win the sentosa IR contract as well.
Buy on weakness :)
Expects earnings to remain robust in the next few years, driven by strong demand for building materials here and contributions from its diesel-engine and appliances manufacturing operations in China, CEO Teo Tong Kooi said.
Mr Teo said the company?s building materials order book is "very strong", but declined to disclose the value of the order book. However, he estimates that the company's orders can sustain its earnings in the next 5 years.
The building materials group was the fastest growing division of Hong Leong Asia last year, with its net profit rising to $13.4m from $3.7m. The division accounted for some 22% of group net profit of $61.1m last year.
Excellent 1Q07 results confirm HLA on right track to reap growth in 2 very attractive industries:
1) Building material in SPore - IR and property boom, near monopoly for granite/sand;
2)China market, no 1 or 2 in fridge and diesel manugacturer, boom with China hot growth.
Cheap price at 2.4+, will approach soon....expect every quarter to see continued growth...
CIMB targets $2.81!!!!!!!!!CHEONG AH!!!!!!!!
Hong Leong Asia (S$2.07) - Cheap exposure to construction boom
HLA's Building Materials Group (BMG) is expected to be a big winner of the jump in building material prices and Singapore's construction boom. BMG earnings could beat expectations this year with earnings likely to triple yoy. HLA is firing on all cylinders with Xinfei and Yuchai on track to deliver double-digit earnings growth. We have raised our earnings forecasts by 28-32% for FY07-09 to reflect BMG's earnings strength. Maintain Outperform with new target price of S$2.81 (S$2.54 previously) following our earnings upgrade, still based on sum-of-the-parts valuation. We believe HLA offers value exposure to Singapore's construction boom and China's robust economic growth
yeah, but I cannot take huge risk, chicken out easily.. but for long term, I think its okay. But my stratergic now is short term, will only go for long term after May, after I got my house key, and renovation, then, I can park "additional money" for long term, now money are for installment and downpayments.. cannot "loss" them ...
Happy for u jackjames.
the sharemkt is truly a risk vs reward thing,isnt it?
bingo, bought it @1.91
There is revival of interest in this stock. Volume and price have been rising steadily for the past couple of days and confirmed by A/D and Chaikin indicators. The price hit a high of $1.81, not since Feb 06.