Li Heng Chem   

Li HENG

Patience, the market needs time to digest the report. The target price is for the next 12 mths. Wait for more broking house to give it another boost. Vested.

 

morning rose to 83..now its down to 79...

don't smell it anywhere near $1 let alone $1.4

 

Report from Deutsche Bank.

Li Heng is a market leader of nylon yarn products in China and we believe is now in a position to expand its production capacity to satisfy nylon demand in China. Initiate with a Buy and a PT of $1.40.  Our DCF-derived PT is based on a WACC of 15.5%, higher than DB's cost of capital for China at 10.2% due to a higher beta of 2.0 comparing the historical stock movement versus the market, and a terminal growth rate of 1.0%. We believe the multiples implied by our PT of 10.3x and 8.7x FY08-09E PE are justified as: (1) our target multiple only implies a 0.4 PEG; (2) peers have traded at a historical average PE of 9.9x; and (3) the company’s leadership position in the Chinese nylon fibre market.

 

Initiate coverage with BUY. We value Li Heng based on the two-stage Free Cash Flow to Equity (FCFE) valuation model. Using a required return of 12.24%, we derive a fair value of S$1.16 for Li Heng. And when benchmarked against our EPS forecasts, this translates to an undemanding 10.2x FY08 PER – which is also in line with FS China Index’s 10.1x FY08 PER – and 7.7x FY09 PER. In addition, Li Heng is looking to pay out at least 20% of its recurring net profit as dividend this year and next year, and we believe this works out to an additional 3.2% yield this year and 3.5% next year. As such, we initiate coverage on Li Heng with a BUY rating and a fair value estimate of S$1.16.
: OCBC

 

Li Heng rose after a foreign broker set a tp of $1.40 for the stock.

 

Read the report in.... SGX

 

down so long

is about time to cheong now :)

 

 

what happen to this stock, up so much in one day? BB is playing?

 

being force down to 0.79  oversold ? ?  Any TA or FA or macro view on this >>>

 

Resistance at 88c., if breakup can go to $1.

(you may want to also consider another chem-fibre stock like C&G which i think is poised to breakup soon.)

 

Result annoucement on 12May, may be a non event bec. just recently reported for FY 2007. Now that I am still vested hoping for some good news.

 

Yes, I was right, still vested, now in uncharted territory. Any TA advice?

 

agree

the volumes for this counter have been growing so huge. can compare to the other s shares liao

 

time for a broking house to initiating a coverage. they have to, ths is the largest yarn producer in sgx amongst the chinese listed companies. i am still keeping my hopes high. vested.

 

A big bear blocking.

hondastream      ( Date: 17-Apr-2008 13:23) Posted: what happening to this counter. ... no movement. infact. had been holding on at the rane of .66 to .665 ?? any sifu to give some light on this counter.

 

what happening to this counter. ... no movement. infact. had been holding on at the rane of .66 to .665

?? any sifu to give some light on this counter.

 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_57A31BF04945A5A84825742B0036ACD8/$file/Li_Heng_Results_Presentation_14Apr08.PDF?openelement

Check out this presentation. I hope it can be linked otherwise copy and paste.


 

 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_9D4D467C182126D64825742800472EA2/$file/LiHeng_FY2007_PressRelease.pdf?openelement

I don't know how is the result compared with ChinaSky, any TA guys care to compare. Is LiHeng worth 0.87cts compared to ChinaSky.

 

http://www.nextinsight.com.sg/content/view/282/60/

Check this link, I tend to agree with Gallen, this is the largest fabric listed co in S'pore thus far. Vested 

 

Gallen      ( Date: 25-Mar-2008 12:34) Posted: Li Heng is cheap relative to its closest comparable China Sky which is trading at 6.39x FY07 P/E and smaller comparables in the same industry like Fibrechem (5.86x FY07 PE) and Sinotechfibre (6.19x FY07 PE) [b]Li Heng forecasted FY07 EPS (post-ipo) is around sgd 11 cents. So applying a similar historical P/E as China Sky, short term fair vlaue should be around 70 cents [/b] A number of people are misled by the high PE figures in the factsheet because they overlook the fact that the PE is for 2006 and not 2007! [b]STRONG BUY![/b]

 

Think it is only contraction and profit taking for those short term player {  LIKE ME :-)  }  but i still dun dare to try this counter.. will try after it break the last high.... hahaha... hope tonight rally continue and all the way to IPO starting price of 80 debut....

 

cheers