Pan Hong    Last:0.094    -0.004

Tapping the markets in Southern China

Today this Pan hong cheong up to $0.585 . dont know why? anyone know ...??

 

It said net profit is set to fall by about 12% this year, but expects earnings to nearly double in 2007.



"We won't have a problem meeting our 2006 profit forecast of RMB52-54 million but we won't exceed it too much," Wong Lam Ping, Pan Hong's founder and executive chairman, told Reuters in a telephone interview on Thursday.



In 2005, Pan Hong's net profit surged 28-fold to RMB59.3 million.



Wong said 2006's slower profit growth was because the company -- which listed in September and now has a market value of $130 million -- had launched only one project so far this year as it was preoccupied with its listing. But the Hong Kong-based firm will have a net cash inflow of RMB600 million next year from the launch of two residential projects in the cities of Hangzhou and Nanchang.



"This will help us meet our 2007 forecast of RMB100 million net profit," he said.



Pan Hong, which has one of the smallest land banks among listed Chinese developers, said it would double its land bank to 1.2-1.4 million square metres from about 550,000 square metres within the next three to five years.



Wong declined to disclose the investment amount, but said the firm will finance the land acquisition from the $38.2 million in net proceeds raised from its IPO, a bank loan and pre-sales revenue from one of its residential projects.



Wong said Pan Hong's debt-to-net asset value ratio -- an indicator of indebtedness -- was low at about 0.2x but added that the company would take on more debt as it adopts a more aggressive growth profile.



"We will increase that going forward for land bank acquisition, but our gearing will not be more than 40% of total net asset value."

 

Hi  ftanhc1973,

Please don't post the same message in multiple topics leh...

thanks....

 

"Riverstone IPO"

Heard the big boy are coming in this afternoon to pick up some goodie.

Bought 10 lots at 0.305 just in case.

good luck

 

today's shares seems to be traded in demonimations of 100 lots @ 0.41.

waiting for it to go up again soon to its price target of 0.51.  

 

sleeping for so long after listing and below ipo price.time to wake up and go up and up.

 

Shares in Pan Hong , which builds homes and commercial property in southern China, rose to a record high of $0.44 after CIMB-GK  initiated coverage of the stock with an "outperform" recommendation. CIMB-GK cited a target price of $0.51..



"Given that Pan Hong has an extensive understanding of the property market in the developing cities and net cash of RMB165 million, we believe it will actively expand its land bank through joint ventures or business alliances," CIMB-GK analyst Alice Chong said in a research note.



Chong added that Pan Hong is well-positioned to tap the developing markets of Huzhou, Nanchang and Hangzhou, where demand for quality housing remains strong due to growing disposable incomes.