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Cls 0.310 - personnal view is this sunrise tech or sunset tech?
ChungHong Holdings Limited is specialises in providing PCBA and OEM services, using any of the SMT/AI/MI techniques or a combination thereof, to its customers in the electronics industry on either a consignment or turnkey basis.
unlez the product is high return, then worth buying for future growth
Going down, down, down, hee hee ! Now is S$0.33 liao. Queue to buy back at S$0.325. Good Luck.
IF US did not go up yesterday, we can short this counter further.
seems going down way la ! Hope I judge wrongly !!!
Hopefully DOW will be up tonight to give this one a small chance of surviving tomorrow. Been quite some time since an IPO make $. Starting from Z-obee all underwater? Will it open like its name tomorrow? Chung Hong.... hehe...
Good luck!
Though i nv really like PCBA co, this one shd be good for long term boosted by increased in sales and profit of LCD tv makers such as Samsung, LG etc who are Chung Hong's customers.
DJ FLAT-PANEL REPORT:Picture Bright For Asia's LCD Makers In'08
By Yun-Hee Kim
Of DOW JONES NEWSWIRES
HONG KONG (Dow Jones)--The good times may get even better for liquid-crystal-display makers in 2008.
After struggling with hefty losses in the early part of 2007, LCD makers in Asia have seen their fortunes improve with prices increasing amid tight supplies after manufacturers cut their capital spending.
Such favorable conditions are expected to continue in 2008, company executives and analysts say, helping to lift sales and profits at Asia's major LCD makers including Samsung Electronics Co. (005930.SE), LG.Philips LCD Co. (LPL), Sharp Corp. (6753.TO) and AU Optronics Corp. (AUO).
"It's going to be one of the best years we have seen in a while," says Woosik Chu, senior vice president of investor relations at Samsung, the world's biggest LCD maker by revenue. "There's likely to be a shortage of LCD panels."
Demand for LCDs is rising as more consumers ditch bulky tube-based TV sets, replacing them with more fashionable flat-screen alternatives. In 2008, LCD makers will also get an added boost from the summer Olympic Games in Beijing, which are expected to spur sales of electronic products such as mobile phones, computers and TVs where LCDs are mostly used in. Companies have also been more prudent about their capacity expansion plans after posting weak earnings in the past two years.
"We expect all of the LCD makers to post strong profit growth in 2008 with margins hovering at around 15%," says Ricky Park, an analyst at market research firm Displaybank.
Global shipments of large-size LCDs - those measuring 10-inches or larger diagonally - are likely to rise 15% in 2008 to 450 million units from an estimated 390 million units this year. Global industry revenue is expected to jump 20% to $84 billion, according to Displaybank.
"Televisions will be the main growth driver for the market in 2008," said Sweta Dash, an analyst at El Segundo, Calif.-based market research firm iSuppli Corp. "LCD TV products are reaching an important price point which will drive future growth."
While LCD panel prices have been steadily rising this year, set prices have continued to fall. The price of the mainstream 32-inch LCD TV panel rose to US$330 in the latter part of November from US$320 at the beginning of this year, according to Taiwan-based market research firm WitsView Technology Corp. But a 32-inch LCD TV has fallen more than 20% from the beginning of this year to US$817.
Osaka-based Sharp, maker of the Aquos-brand LCD TVs, says lower set prices should help stimulate more demand for large-sized televisions.
"We believe that there will be considerable growth in demand from the Chinese market and Sharp will focus on sales of panels over 40-inches," spokeswoman Miyuki Nakayama said.
Many brokerages are upbeat about the LCD sector. Credit Suisse, for one, maintained its "overweight" rating on the sector last week.
"We continue to believe that the LCD sector will be even more stronger in 2008, than in 2007," the report said. "In the second half of 2008, we could actually see the first outright shortage of LCD panels since the second half of 2003 and the second half of 2002."
Credit Suisse has "outperform" ratings on LG.Philips LCD of South Korea, AU Optronics and Chi Mei Optoelectronics Corp. (3009.TW) of Taiwan.
AU Optronics executives say they expect large-sized LCD panels will be "running tight" for the next two years and new applications will emerge to spur greater demand.
The company, Taiwan's biggest LCD maker by revenue, expects global demand for LCD panels to rise 28% in 2008 and another 25% in 2009.
"There will be a number of new LCD applications entering the market soon such as public-information displays. Demand for digital frames will be hot and the size will become larger," said AU Optronics' vice-chairman and chief executive HB Chen.
Industry Needs Disciplined Capex
With the demand picture looking brighter next year, analysts say the key for suppliers in order to maintain steady profits will be disciplined capital spending.
Credit Suisse analyst John Sung said if market conditions turn out to be more favorable next year, there is the risk that LCD makers may decide to fast-forward their spending plans with the ample cash they earn.
"Any sign of fast-forwarded capex will be a reason to turn negative on the sector" he warned, because it could lead to excess supply in the market bringing about price declines.
Indeed, industry leader Samsung said Thursday it would spend an additional 2.06 trillion won ($2.2 billion) to boost LCD capacity in 2008. The company plans to make the investment to boost panels in the 46-inch to 52-inch segment.
WitsView predicts that capital spending by LCD makers will rise to US$12.68 billion in 2008 from an estimated US$8.6 billion this year.
"The key for the market will be how well companies manage their inventory and their utilization rates," said HP Chang, an analyst at WitsView.
While Samsung tends to outspend its rivals to gain an edge against competitors and maintain its dominant market share, even Chu was cautious about further capacity expansion plans.
"If supply becomes very tight, there could be some additional spending towards the second half of next year but everyone is very nervous about investing because the spending could spoil the market," he said.
And while a slowing U.S. economy due to the credit market turmoil could put a damper on consumer demand there, analysts are still upbeat about industry prospects.
"An attractive price gap to CRT (cathode ray tube) TVs and robust demand from emerging markets will likely offset any impact from a slowing U.S. economy," said UBS analyst Christian Dinwoodie.
Table of Average LCD Panel Prices
Nov 20 Nov 6 Oct 5 Sep 20
LCD TV
42-inch $545 $545 $545 $545
40-inch $510 $510 $510 $510
37-inch $450 $450 $450 $450
32-inch $330 $330 $330 $325
Monitor
19-inch $158 $158 $158 $155
17-inch $138 $138 $138 $135
Notebook
15.4-inch wide $109 $109 $109 $108
14.1-inch wide $107 $107 $107 $106
Source: WitsView
ChungHong Holdings launched its IPO on 19/11, offering 55m new shares at 36.5 cents each.
The company provides printed circuit board assembly and OEM services. Started in '96 by former major Brave Yu, ChungHong is run by Taiwanese, manufactures in China and sells mainly to top-tier Korean firms, like Samsung, Logitech and LG. Samsung accounted for nearly 78% of the ChungHong's total sales in FY06.
Mr Yu said ChungHong focuses on high-end products, such as LCDs, which are used in higher-margin items like flat panel televisions, monitors and digital photo frames.
The firm saw revenues of RMB547.8m for FY06, compared with RMB376.4m for FY05. Net profits were RMB43.4m for '06, up from RMB 17.3m in the previous year.
ChungHong will use its expected IPO net proceeds of $16.31m for purchase of new plant, repayment of bank borrowings and for working capital. Westcomb Financial Group is the issue manager for the IPO.