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look like bb collection finish,,,,,,,,,cheers for recovery rally china hongxing coming,,,,,,,,,,,,,hope can see tis baby chiong up to 26cts,,,,,,,,,,,,,,,,,,hope kill short action again,,,,,,,,,,,,,,,,,,,,,,,,,,,cheers for happy new year 2009,,,,,,,,,,,,,,,,hopefully coming
time for tis baby rotation play liao,,,,,,,,,,dun forget tis baby powerful reverse action,,,,,,,hope bb from gg kick start to play ,,,,,,,,hope we retail nplayer can have a christmas ,,,newyear even lunar new year ang bao,,,,,,,cheers
Sportswear Sector Update from KIn Eng
Last price: China Hongxing ($0.205)
Recommendation: Buy (Maintained)
Target price: China Hongxing ($0.42)
Stimulus package aims to boost domestic consumption
Against the backdrop of a worsen economic outlook in 2009, China’s government seeks to maintain a stable and relatively fast growth, targeting a minimum 8% GDP growth and the creation of 10m jobs. China’s recent RMB 4 trillion stimulus package stressed on the importance of boosting domestic consumption. With a strong fiscal surplus of close to RMB 1 trillion, the Chinese government has capacity to cushion the impact of a sharp economic slow down.
We favour market leaders with mass market appeal
We believe market leaders with sizable domestic distribution network and mass market appeal will benefit from China’s initiatives to boost its domestic consumption. In the consumer space, we like China Hongxing and China Zaino. Both are amongst the top 20 S-chips by market capitalisation, below book values and bag strong net cash position.
China Hongxing has the stamina
CHHS established market positioning in the middle-tier markets in PRC (market share of about 7-8%) is likely to benefit from rising urbanisation which the Chinese government seeks to promote. Its hinges on mass-market appeal with product pricing that are approximately 50% lower than close competitors such as Li Ning, and 60% cheaper than international sports brand players. Demand visibility is strong at least until 1H09 underpinned by its robust order book (~38% higher than year ago) that is non-refundable and to be delivered by May 09. Its huge net cash of RMB 1.98bn will facilitate its aggressive expansions to secure prime locations in second-tier cities that are crucial for sustainable growth.
Market leaders at bombed out valuations
Both CHHS and CZAI have seen their share prices plunged 61-78% YTD, and are trading at > 50% discount to their Hong Kong peers. Current low valuations (2-5x PER) look oversold considering their sizable market dominance in the PRC and strong cash outlay. Risk-reward tradeoffs are turning attractive as we see limited price downside to distress levels and milder earnings expectations. Key risks to our calls are crash- landing of the PRC economy and ineffective implementation of the economic stimulus.
richtan ( Date: 17-Dec-2008 09:50) Posted:
| (XFN-ASIA) - Kim Eng said it is reaffirming "buy" recommendations on China Hongxing Sports and China Zaino on expected benefits from China's efforts to boost domestic consumption. In a note to investors, Kim Eng said it favored "market leaders with mass market appeal." "These will benefit from China's initiatives to boost its domestic consumption. In the consumer space, we like China Hongxing and China Zaino," Kim Eng said. The target price on China Hongxing is 0.42 sgd, and on China Zaino 0.50. China Hongxing last traded at 0.21 sgd and China Zaino 0.23 |
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ok !! tell them to buy more to keep ....
richtan ( Date: 17-Dec-2008 09:50) Posted:
| (XFN-ASIA) - Kim Eng said it is reaffirming "buy" recommendations on China Hongxing Sports and China Zaino on expected benefits from China's efforts to boost domestic consumption. In a note to investors, Kim Eng said it favored "market leaders with mass market appeal." "These will benefit from China's initiatives to boost its domestic consumption. In the consumer space, we like China Hongxing and China Zaino," Kim Eng said. The target price on China Hongxing is 0.42 sgd, and on China Zaino 0.50. China Hongxing last traded at 0.21 sgd and China Zaino 0.23 |
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Take it with a pinch of salt. Better still just delete it.
richtan ( Date: 17-Dec-2008 09:50) Posted:
| (XFN-ASIA) - Kim Eng said it is reaffirming "buy" recommendations on China Hongxing Sports and China Zaino on expected benefits from China's efforts to boost domestic consumption. In a note to investors, Kim Eng said it favored "market leaders with mass market appeal." "These will benefit from China's initiatives to boost its domestic consumption. In the consumer space, we like China Hongxing and China Zaino," Kim Eng said. The target price on China Hongxing is 0.42 sgd, and on China Zaino 0.50. China Hongxing last traded at 0.21 sgd and China Zaino 0.23 |
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(XFN-ASIA) - Kim Eng said it is reaffirming "buy" recommendations on China Hongxing Sports and China Zaino on expected benefits from China's efforts to boost domestic consumption. In a note to investors, Kim Eng said it favored "market leaders with mass market appeal." "These will benefit from China's initiatives to boost its domestic consumption. In the consumer space, we like China Hongxing and China Zaino," Kim Eng said. The target price on China Hongxing is 0.42 sgd, and on China Zaino 0.50. China Hongxing last traded at 0.21 sgd and China Zaino 0.23
