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is it going to down after breaking 48??
can in not??
ozone2002 ( Date: 21-Jul-2008 14:39) Posted:
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will this price stay or will be down??
Hulumas ( Date: 18-Jul-2008 19:28) Posted:
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this counter generating a lot of buzz..
prefer Li heng than this counter.. li heng doin nylons...hong xin doin apparel..kinda consumer related.. not so well diversified..
just my take
Trade with care as they had went in since 1 July at around $0.45 thereabout. However do think that they are slowly making a come back and has now become major shareholder.
SGX reported some fund buying interest in China Hongx. See below:
| 1. | Date of notice to issuer * | 17-07-2008 |
| 2. | Name of Substantial Shareholder * | Wasatch Advisors, Inc. |
| 3. | Please tick one or more appropriate box(es): * |
|
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| >> PART II |
| 1. | Date of change of Interest | 01-07-2008 |
| 2. | Name of Registered Holder | Citigroup Private Bank, Fidelity Management Trust Co., JP Morgan Chase Private Bank, Marshall & Ilsley Trust Co., Mellon Bank, Mellon Private Asset Management, Northern Trust, State Street Bank, Suntrust Bank of Atlanta and Union Bank of California |
| 3. | Circumstance(s) giving rise to the interest or change in interest | # Others | |
| # Please specify details |
|
| No. of Shares held before the change | 100,232,150 |
| As a percentage of issued share capital | 4.91 % |
| No. of Shares which are subject of this notice | 28,304,020 |
| As a percentage of issued share capital | 1.11 % |
| Amount of consideration (excluding brokerage and stamp duties) per share paid or received | 0.45 |
| No. of Shares held after the change | 128,536,170 |
| As a percentage of issued share capital | 5.06 % |
Morning Bulletin from Kim Eng dated 21 July 2008
1. China Hongxing – Company Update (Pauline Lee, DID: 64321453)
Previous Day Closing price: $0.49
Recommendation: BUY (maintained)
Target price: $0.87 (maintained)
Grass is greener at home
The group’s leading domestic franchise in the PRC will mitigate external shocks. Retail sales in China jumped by 23% Y/Y in June, reflecting the still buoyant domestic consumption. CHHS has an extensive distribution network of 3440 point of sales (POS) as at 1Q08, trailing behind Li Ning (5676 POS) and Anta (4716 POS) which are more than double its size in terms of market capitalisation. CHHS’s brand ‘Erke’ is gaining traction and is ranked 139
th out of 500 top brands in the PRC at the fifth world brand summit, with an estimated brand value of RMB5.3bn.Strong cashflow position assures smooth business expansion
The group’s strong net cash position of RMB2.6bn or S$0.19 per share will facilitate its expansion plans. Its placement of 400m new shares in November 2007 raised approximately RMB2.3bn, and will be mainly used for the expansion of its sales and distribution network and for advertising and promotional activities. The rental loans given to distributors for the mid-size stores are being repaid according to schedule with no signs of default.
Gross margin to see short-term weakness
While raw material costs are rising (approximately by 5-10% Y/Y), the group is confident about improving gross margin through better product mix, economies of scale (vis-a-vis in-house production), and rising ASPs along with new footwear/apparel designs. However, gross margin in FY08 is likely to stay flat at around 41% due to the product discount program which will last till 1Q09. The group is confident of reverting to a 2%-point annual increase in gross margin by FY09.
Same-store sales growth in the pink of health
According to the management, same-store sales have been growing faster than the targeted growth rate of 15% Y/Y. The group expects to add at least 600 new stores a year in 2008 and 2009. Each new mid-size store typically takes 6 months to operate at a normalized sales level and progress has been encouraging so far.
Shoes for sale!
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CHHS’s share price has corrected by 50% YTD, and is trading at a discount to its peer average of 15x FY08 PER. Valuation is presently undemanding given the group’s strong market dominance in China. Also, the company is well-capitalised for its next phase of growth. Reiterate BUY. Year End Dec 31 |
2006 |
2007 |
2008F |
2009F |
2010F |
|
Sales (S$ m) |
1411.7 |
2046.2 |
3044.5 |
3976.1 |
5208.3 |
|
Pre-tax (S$ m) |
235.3 |
450.1 |
603.4 |
805.6 |
1043.1 |
|
Net profit (S$ m) |
214.6 |
416.5 |
522.0 |
696.8 |
902.3 |
|
EPS (cents) |
10.7 |
20.0 |
20.5 |
27.4 |
35.5 |
|
EPS growth (%) |
31.8 |
86.7 |
2.6 |
33.5 |
29.5 |
|
PER (x) |
23.1 |
12.4 |
12.1 |
9.0 |
7.0 |
|
EV/EBITDA (x) |
2.6 |
4.0 |
5.6 |
7.5 |
10.1 |
|
Yield (%) |
1.0 |
1.6 |
2.3 |
3.0 |
4.0 |
| 12:23:13 | 0.490 | 10,000 | Sell Down |
| 12:22:56 | 0.495 | 1,000 | Buy Up |
| 12:22:35 | 0.490 | 70,000 | Sell Down |
| 12:22:24 | 0.490 | 2,555,000 | Buy Up |
ozone2002 ( Date: 18-Jul-2008 09:14) Posted:
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More of retailers to retailers... not really BB.... but some BB to-be..
Cuz now most are really not into China Market yet... US market is still the buzz for them...
If you know what I meant...